Contract Review in China: What Foreign Businesses Should Know

Contracts are the foundation of any business relationship, and in China, getting them right is especially important. A poorly drafted or misunderstood contract can lead to costly disputes. Here's why professional contract review matters for foreign businesses.

Key Clauses to Watch For

• Governing law — which jurisdiction's law applies to the contract?
• Dispute resolution — litigation or arbitration? Where?
• Payment terms — when, how, and under what conditions payment is made
• Delivery and acceptance — when are goods/services considered delivered and accepted?
• Liability and indemnity — who is responsible if things go wrong?
• Termination — how can the contract be ended, and what are the consequences?

Why Bilingual Review Matters

Contracts in China are often drafted in Chinese, and translations can be imprecise. A licensed attorney who is fluent in both English and Chinese can:

• Identify discrepancies between the Chinese and English versions
• Ensure you fully understand every clause
• Negotiate terms that protect your interests
• Draft bilingual contracts that are clear and enforceable

The Cost of Not Reviewing

Skipping professional contract review can lead to unfavorable terms, unexpected liabilities, and costly disputes. Investing in proper review upfront is far cheaper than resolving a dispute later.

Next Steps

Have a contract that needs review? Book a free consultation with Attorney Liu Huaguang, a licensed PRC attorney experienced in contract review and drafting.