Contracts with Chinese Companies

Contracts with Chinese companies require different contents to contracts between Japanese companies. For example, contracts with Chinese companies must stipulate that the selected method of dispute resolution is arbitration, because decisions handed down by courts in either Japan or China cannot be executed by courts in the other country.

Further, contracts with Chinese companies must not breach Chinese laws.

In addition, for certain types of contracts, such as joint venture agreements and intellectual property licensing agreements, notifications must be filed with the Chinese authorities. These contracts are examined by the Chinese authorities, and therefore especial care must be paid to their contents.

Even if a company succeeds in preparing a contract that complies with all of the above, it will be meaningless until the company manages to have the counterparty agree to and execute the agreement. Some Chinese companies make requests to amend the contract in their favor in the negotiation stage of concluding the contract, on the grounds that the contract breaches Chinese laws or Chinese commercial practices that do not actually exist. Given this, the client must participate in negotiations with the attitude that the client will not agree to improper requests by the Chinese company such as these.

Services provided by Kuroda Law Offices

We naturally prepare contracts that are legal and advantageous to our clients, and can also attend negotiations with the Chinese counterparty and negotiate directly with them. Further, we can conduct filing procedures on our clients’ behalf for contracts that require notification to the Chinese authorities.

The major services we provide in relation to contracts with Chinese companies include: