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Litigation or Arbitration, Which is the Best Choice?

Choosing a dispute resolution forum when drafting contracts with Chinese companies or dealing with contract disputes with your business partner in China could be difficult. As a law firm specialised in dispute resolution area, the most frequent questions we have been asked are: which dispute resolution forum should I choose - litigation or arbitration? Is it possible to add an additional defendant in arbitration? Would Chinese courts rule in favour of the Chinese party in a foreign-related business dispute?

We need to take several considerations into account: the amount of business transactions, your counterparty’s company size, the duration of your counterparty company existence, time and cost to pursue litigation or arbitration.

Please refer to the below chart for further details.