Contract negotiation and drafting is perhaps the most frequently requested service at IPO Pang. Year on year, we help hundreds of companies draft every kind of contract imaginable – in English and Chinese, catered to the Chinese peculiarities but holding firm on Western fundamentals regarding dispute resolution, foreign exchange risks, insurance coverage, indemnification, FCPA compliance, confidentiality and full disclosure. Negotiation with a Chinese enterprise is part science and part art. Conveying the message so that the Chinese party can understand, accept, and abide by it requires not only clever draftsmanship but also a deep understanding of the Chinese mind, customs and culture. At IPO Pang, we have been drafting bilingual contracts for many years, ranging from straightforward agreements to complex multi-party projects spanning multiple jurisdictions.
Chinese parties often regard contracts as mere summations of an oral deal, and frequently not enough attention is paid to “what if” scenarios since culturally this is considered “bad luck.” As a result, often we must educate the local Chinese on behalf of the foreign enterprise client regarding the need for a contract that anticipates what can go wrong and specific courses of action for resolution.
When we represent a foreign enterprise in China we must fully understand the client’s needs and expectations. More importantly, we share with – and predict for – the client the local party’s next move. It is through this dialogue that the foreign party is able to clearly articulate its needs and maintain its strategic advantage. We work with our foreign enterprise clients to structure and document relationships with suppliers, customers or strategic joint venture partners, including merger and acquisition documents, long term partnership arrangements, purchase agreements, license agreements, distribution agreements and franchise agreements. Our model is to protect our clients’ rights, enhance the value of their businesses and investments, and ensure contractually that profits can be remitted back to client’s home base in a manner that is unimpeded and consistent with the requirements of the State Administration for Foreign Exchange.