Dispute Resolution in China: Putting the House in Order
December 31, 2001 | BY
clpstaff &clp articlesImplementing fundamental judicial restructuring to handle international trade disputes is an urgent task facing the Chinese leadership. It is a task that will determine China's success in its economic reforms.
On December 11, the People's Republic of China (PRC) begins active participation in the World Trade Organization. Many governments, WTO officials, multinational companies and legal experts are concerned that China's entry may overload the WTO's dispute settlement institutions if PRC companies and their foreign business partners fail to implement mutually satisfactory means of settling their trade and investment contract disputes and therefore ask their respective governments to take up their cause in the WTO.
This puts a premium on the further development of appropriate legal institutions inside and outside China for resolving international business disputes. Fortunately, since China's Open Policy began in late 1978, PRC and foreign entities have acquired enormous experience in dispute resolution. Moreover, recent developments demonstrate that the continuing search for even more effective dispute resolution mechanisms is creating new, flexible and imaginative arrangements that increasingly facilitate the foreign trade, direct investment and other technology transfer transactions that fuel China's modernization.
Informal Settlement
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