Demand Letters to Chinese Companies: Facts are Optional

Katie R. Ochoa

My law firm’s global dispute resolution lawyers typically generate demand letters to Chinese firms that owe income or have failed to abide by a contract. These letters are distinct from what we compose to American and European corporations.

Our demand from customers letters to American and European providers are typically reasonably extended. They thoroughly describe the info and the pertinent regulation. Then they explicitly explain what we will get from a court or arbitration panel if the receiver fails to comply with our requests. They then established out what the receiver should do to take care of the case and point out how it is in “everyone’s finest interest” to accomplish resolution.

The receiver of these letters typically responds by pointing out holes in our client’s situation. The response letter usually gives its own in depth factual and authorized recitation, then points out why they will prevail. It is generally longer than the desire letter that precipitated it.

China tends to be distinctive.

In When Your Supplier is not Arguing to Get, David Dayton (who in fact has a Ph.D in Chinese Organization Anthropology), explains some of this change, and posits that Chinese businesses simply do not treatment about arguing towards logical conclusions:

Americans tend to argue to solve unique factors (terms, dates, data, and many others.). Preferably all those person factors will be acknowledged and inevitably the argument will achieve a “logical” conclusion—each side’s certain factors have been resolved to some mutual agreeable stage. I guess you can say that you “win” an argument by having as a lot of of your precise issues settled to your gratification as achievable (with out giving up too quite a few to the other side).

But in 12 a long time in China, I can say that I have only experienced this progressing-to-a-logical-summary variety of argument a few of moments. It seems to me that equally the position of and the method of arguing is entirely distinct in China.

Our legal professionals have continuously discovered that one to two web site letters that include quite small by way of facts or law are most effective for all but the greatest Chinese providers. Our need letters (often in Chinese) ordinarily just condition that the Chinese business owes our consumer X dollars from its failure to do Y. They then convey to the Chinese corporation what we will do if it does not pay our client immediately.

The Chinese corporation usually responds by saying it will in no way fork out our consumer something. It ordinarily also supplies some vague explanation for this, this sort of as “your client is a liar” or “your consumer stated it would make a further buy from us” or “your consumer does not realize China.” We then reiterate what will come about to the Chinese corporation if it does not pay fast and then the Chinese firm possibly responds to point out that it would prefer to settle. Or not.

For extra on how to deal with a dispute from a Chinese company verify out How to Sue a Chinese Organization: The Long Edition.

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