Dispute Resolution – Litigation – PRC

Litigation – PRC

A decade ago, PRC courts mainly dealt with conflicting interests among state own enterprises. The Judiciary was not independent, the judges were retired army officers and the lawyers were from State owned law offices.

PRC courts to-day have gone through tremendous reform, especially in the last 5 years. 8 out of 10 cases in the PRC courts are disputes in private sector; judges are successful candidates of professional examination; and lawyers are now in private practice.

Judges and lawyers are now wearing gowns and procuratorate uniform is not allowed in court. Different aspects of laws are promulgated and Judiciary is more independent.

However, due to the political system and salary structure, some judges are still under political and monetary influence resulting outcome of the cases unpredictable. There are substantially more losing than winning cases in the foreign camp, though some of the losses are justifiable.

For foreign investors, taking precaution and accepting rightful advice from the incept of investment is paramount.

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Foreign mentality and way of doing things may not be the same in China. Complicated by politics and “granxi”, the only way to resolve disputes in China is to obtain assistance from Chinese lawyers to handle in Chinese way.

Credibility of Chinese lawyers are acceptable, though dealing with Chinese lawyers itself is a Chinese issue. This is where our firm comes in. We operate in the way accustom and similar to western practice and we have the same code of practice as our English counterparts. Hong Kong system provide protection to client vis-a-vis client and solicitor relationship. We supervise our Chinese counterparts vis-à-vis lawyers in the same country to circumvents the difference in culture and out look.

In the last 16 years of our operation in mainland China, we successfully help our clients in pursuing their rights in the PRC and advice them where the minefield is. We won a lot, though not all, but our client’s interests are rightly protected.

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