Dispute Resolution in Light of China's Economic Growth

Dispute Resolution Journal, May-July 2008 | Go to article overview

Dispute Resolution in Light of China's Economic Growth


Dispute Resolution in Light of China's Economic Growth Managing Business Disputes in Today's China: Duelling with Dragons. Edited by Michael J. Moser. Alphen aan den Rijn, the Netherlands: Kluwer Law International (www.kluwerlaw.com), 2007 Hardcover. 319 pages. $150.

The Chinese economic boom, triggered by economic reforms in the late 1970s, is expected to continue. The World Bank is projecting more than 10% economic growth for the developing nation over the next two years.

Such growth naturally attracts foreign investors, and where there is an increase in foreign investments, there is likely to be a jump in the number of investment-related disputes.

This book introduces readers to the practice of managing business disputes in China, especially those involving foreign investors. It uses the device of a hypothetical to raise numerous issues. The hypothetical involves a power plant joint venture in China called Ricepower, which is owned by an American power company, a Dutch investor, and a Chinese government-owned trust and investment company.

Ricepower is caught up in all sorts of disputes that can possibly arise during the course of a joint venture. Among Ricepower's problems: a delay in obtaining approval for the new power plant to start operations and sell electricity; unexpected competition from a municipal government that had begun construction of its own power plant; and a dispute with contractors stemming from a change in foreign exchange rules that made timely payments to the contractors impossible.

Thirteen authors contributed to this book. Their contributions offer various settlement options for each dispute and discuss the advantages and disadvantages of each.

Dispute Resolution Options

Richard Chalk and John Choong, both in the Asia Dispute Resolution Practice Group at Freshfields Bruckhaus Deringer in Hong Kong (which Chalk heads) provide an overview of the various dispute resolution options available in China. …

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