Premium
Strategic Contracting in China for Foreign Firms
Author(s) -
Carr Chris,
Harris Dan
Publication year - 2015
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.21699
Subject(s) - china , business , value (mathematics) , industrial organization , market economy , economics , law , political science , machine learning , computer science
There is serious debate within the global business community regarding the value of the Chinese court system and written business contracts in China. One side asserts the validity of such contracts and that Chinese courts are good at enforcing them. The other side argues the contrary. Using data from several sources, we demonstrate that the legal system and well‐written contracts do, in fact, matter in China. This article also recommends how contracts can be structured and strategically used to make doing business in China and with Chinese firms more predictable and efficient. © 2015 Wiley Periodicals, Inc .