Dutch entrepreneurs are increasingly active in the Chinese market. China is a challenge in all respects. The potential profits are high. So are the risks however. You will have to make agreements with Chinese companies and are dependent on government decisions. You need sound advice if you envisage business activities in China. Even if you have operated successfully in the Chinese market for several years, having your approach analysed for possible improvements to optimise your return on investment is still worthwhile.
For example, were you aware that you should avoid stating that your general terms and conditions apply to an agreement with a Chinese party? In general, this would mean that Dutch law applies and that a Dutch court has jurisdiction in the event of a dispute. However, a judgement made by a Dutch court cannot be used against a Chinese party. As a result, no attachment can be made to assets in China. Judgements made by foreign courts are only recognised by China if an enforcement agreement has been signed with the country in question. No such agreement exists between the Netherlands and China. Consequently, you are advised to state that Chinese law is applicable and to opt for jurisdiction by a Chinese court. Or you can opt for [international] arbitrage as China has signed an international arbitration convention. This is just one example of the benefits that can be achieved through thorough preparation and engaging a competent sparring partner.
What can we offer you?
A Dutch lawyer in China
Our partnership with a Chinese law firm means that we can offer advice on all issues between you as a Dutch company and your Chinese trading partners. The Chinese law firm employs Dutch nationals, meaning that they can communicate with you in Dutch. We can not only assist you with legal advice, but also act as a sparring partner when discussing strategy, language, culture and local customs. What are the potential pitfalls? What are the dos and don’ts? Because they have worked in Shanghai for many years, they have intimate knowledge of the local, regional and national markets. Communication is also favoured by a good relationship with the Chinese government. Thanks to this collaboration, we can also offer you extensive knowledge of international contracts.
In other words: Bogaerts & Groenen advocaten is your legal portal into China.
Contact China Desk:
T. +31 (0) 88 141 08 16