Disputes with Chinese Companies and Individuals
1. Dispute matters in general
Even today, it is not uncommon to hear of cases where a Chinese company or a Chinese individual does not perform its obligations to pay or to deliver goods, despite having concluded an agreement. In such cases, the aggrieved party should firstly send the defaulting party notice demanding performance, but if the defaulting party still refuses to perform, the aggrieved party may be forced to resolve the issue through litigation in China.
When litigating in China, the party will need to select an attorney who is qualified to practise law in China, but different attorneys have different litigation and communication skills. Given this, how to choose a suitable attorney is a very important question.
2. Special dispute matters (disputes relating to the Product Quality Law, etc.)
In the same way that Japan has the Product Liability Act, China has the Product Quality Law, and if a product manufactured in China has a defect stipulated in the Product Quality Law, the manufacturer bears an obligation to compensate for any damage caused by the defect.
Naturally, to determine whether there is actually any obligation for damage compensation under the Product Quality Law, it is necessary to consider from a legal perspective whether there was a defect in the first place and whether any of the exemptions from damage liability apply, and, if the manufacturer is found to be liable for damages, what amount of damages the manufacturer should be liable for.
Further, while it is particularly so when there is a defect, a company’s failure to respond at the appropriate time and in the appropriate way will inevitably lead to deterioration of its public image in the case of quality issues in the company’s Chinese-manufactured products as well, even if the issues are not to the degree of a defect under the Product Quality Law.
In disputes relating to the Product Quality Law, a response that pays close attention to these points is essential.
Other special dispute matters like this include disputes relating to the Antimonopoly Law and the Food Safety Law, for example.
3. Services provided by Kuroda Law Offices
We have extensive experience in disputes with Chinese companies and individuals, including cases in which our advice brought about a resolution without resorting to litigation. Further, in cases in which litigation was necessary, we collaborated with leading local partner firms to provide a litigation response aimed at resolving the dispute.
Therefore, we can offer advice with respect to disputes with Chinese companies and individuals that includes resolution through litigation, and can team up with leading local law firms and provide a litigation response quickly and appropriately if the matter reaches the stage of litigation.
The major services we provide in relation to disputes with Chinese companies and individuals include:
- Recovery of debts from Chinese companies and individuals
- Claiming damage compensation from defaulting Chinese companies and individuals
- Resolving quality issues in clients’ products in China