Monthly Archives: March 2016

A Common Misunderstanding About Choice of Governing Law Under PRC Law

During the negotiation of a cross border transaction between a Chinese party and a People’s Republic of China (“PRC”) subsidiary of a foreign company, it is very common that the foreign company will insist in that the transaction shall be subject to foreign law such as UK law, HK law or US law. Or at least, the foreign company will inquire with their lawyers as to whether foreign law can be chosen as the governing law of the contract. Such request is understandable from a commercial perspective as the foreign law seems to show the foreign party’s commitment to the “well recognized international standard” or “the right thing to do”.

Expansion of China’s Free Trade Zones (FTZ’s)

Following the economic success of creating an FTZ in Shanghai in 2013, China has decided to expand the Shanghai FTZ and create three more. Tianjin, Guangdong and Fujian have been announced as the three new FTZ’s, each catering to a specific area of business as result of their individual geographic location. In this article, we shall explore the specific areas covered, the area specialties and what the move to increase the amount of FTZ’s means in a wider context.