By Zhang Shouzhi, Xu Xiaodan and Li Xiang King & Wood Mallesons’ Dispute Resolution Group
Commercial contracts (especially international financing agreements) between Chinese parties and foreign parties often designate a foreign court outside of China as the forum in which to resolve potential disputes. Such a forum selection clause, often insisted upon by the financial institution due to its stronger bargaining position, has become a generally accepted practice in international financing transactions.
However, when entering into an international commercial contract with a Chinese party, selecting a foreign jurisdiction to resolve disputes may place the foreign party at a disadvantage with respect to future commercial activities.Continue Reading Forum Shopping in Dispute Resolution: Hurdles and Solutions
