When Giants Collide: Problems Encountered By American Companies Involved in Cross-Border Litigation with China

Since making a renewed commitment to working with the World Trade Organization (WTO), as well as initiating many policy changes and market reforms, China has become one of the world’s fastest growing economies; and despite a substantial trade deficit, in 2003 U.S. exports to China grew approximately 66 percent and continue to grow today while the rest of the world is experiencing a decline.

China is the United States’ third largest trading partner and forecasted by most economists to move up quickly in the ranks. Although offering a hugely diverse market, China also maintains fiercely competitive business practices. However, many American companies wittingly choose to co-exist as the underdog and still find it profitable to own factories, contract factories or produce products and product parts in the Country.

The Chinese government fervently supports state-owned enterprise and foreign companies conducting business in China, including those from the United States, cannot afford to be naive about expecting an even playing field. This is the reason U.S. companies need multiple entities of representation in China, not only to ensure that their best interests are protected, but also to navigate unfamiliar Chinese laws.

The U.S. Department of Commerce operates offices in Beijing, Chengdu, Guangzhou, Shanghai, Shenyang and Hong Kong to help American companies navigate the complexities of Chinese regulatory processes, policies and business practices. There are also many private consulting firms and trade groups set up to help foreign companies better understand the Chinese market and assist with research, locating partners and providing feedback on business plans.

Even with all of these resources foreign companies doing business in China require adequate legal representation to help prevent and negotiate cross-board litigation successfully.

A law firm with skilled trial lawyers in cross-border litigation with China will aid U.S. companies in navigating China’s bureaucratic challenges.

These challenges include the following:

  • Transparency of trade and investment policies and practices.
  • Regulatory barriers to trade such as customs procedures, technical regulations, certification practices.
  • Import and Export Licensing restrictions and agreements.
  • Rigid innovation policies.
  • Restriction of access for foreign products, investors and technology.
  • Problems protecting intellectual property rights.

Hornberger & Brewer are Los Angeles trial lawyers who have remarkable experience in cross-border litigation with China. Their trail lawyers focus on cross-border disputes of any type including business and commercial claims, government claims and pre and non-litigation advisory services. Their firm has developed a reputation for excellent results in the practice area of cross-border litigation and they make it their first priority to assure all of their clients with overseas interests are afforded the highest level of protection.


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