Sellers' Remedies and Strategies when Dealing with Financially-Distressed Buyers in the United States and Taiwan

November 30, 2006 | BY

clpstaff

The United States and Taiwan are among China's top trading partners. How do Chinese companies navigate two different legal systems to recover their losses from defaulting parties?

By Brian Y. Lee, Winston & Strawn, San Francisco; Shilin Huang, J&J Attorneys, Taipei

China's exports to the United States, its top trading partner and export destination, have increased dramatically in the last decade with no signs of slowing down. According to the US Department of Commerce, Chinese companies exported more than US$243 billion in goods to the US in 2005, an increase of 23.8% from the previous year.

As they conduct business in the US, Chinese companies inevitably deal with the American legal system. They encounter challenges when dealing with financially-troubled debtors who use Chapter 11 of the US Bankruptcy Code to rehabilitate their businesses, an alternative that does not yet exist in China's bankruptcy system.

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