China is more deeply integrated than ever into the global economy, and each passing year sees a growing number of Chinese and foreign enterprises contracting with each other. But Chinese and foreign companies, understandably, like to do business under legal systems and rules they are familiar with. And in cross-border deals, this can create conflict. Dealmakers must, therefore, mutually agree on which jurisdiction’s laws should govern the contract in the event of a dispute.

As a result, Chinese and foreign companies are increasingly seeking the help of external counsel to understand what governing law is standard for the different cross-border deals they are involved in.

While Chinese law invalidates the choice of a foreign law to govern certain kinds of transaction, many of the most valuable China-related deals in the corporate, commercial, IP and real estate sectors fall outside these restrictions.

The first part of the report investigates the choice of governing law in China-related transactions and whether this choice is the subject of negotiations. The second part of the report delves into the reasons driving the choice of law, and examines whether different priorities result in the choice of different jurisdictions. The complete report can be viewed in our Special Reports section on the ALB homepage.