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Chinese company provides a harsh lesson in what contract drafting is really all about

A Chinese company’s flouting of a U.S. arbitration award reminds us: A contract drafter’s ultimate job is to position her client to get law enforcement to seize the other side’s assets if the other side defaults. See Paul Wiseman, Even on US turf, culture clashes make China firms tough foes (AP.com May 16, 2016).


WASHINGTON (AP) — U.S. companies have found it can be tough to do business in China. Now, as more Chinese firms invest in the United States, U.S. companies are finding it can be hard to contend with the Chinese on American turf, too.

Chinese companies can hide behind complex corporate structures. They can keep assets back home. And they can use connections to Beijing to assert immunity from America’s legal system.

Consider one Texas company that thought it had scored a victory.

Five months ago, an arbitration panel awarded Tang Energy Group at least $69 million after a contract to build wind farms collapsed and left Tang fighting for survival.

The celebration didn’t last long.

Read it all.

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