Case Types We Handle

Understanding the six major categories of litigation cases involving foreign businesses in Chinese courts, with detailed subtypes, applicable laws, and success insights.

Contract Disputes

Most common litigation type with highest occurrence rate for international businesses

Subtypes

  • International Goods Purchase/Sale Contract Disputes

    European/American enterprises purchasing from Chinese suppliers or vice versa

  • Service Contracts

    Technical services, consulting, logistics agreements

  • Agency/Distribution Contracts

    Representation and distribution arrangements

  • Loan or Financing Contracts

    Financial agreement disputes

Applicable Laws

  • Civil Code (Contract Section)
  • Civil Procedure Law (Foreign-related Part)
  • Law on Application of Laws for Foreign-related Civil Relations

Success Insights

  • Chinese courts tend to protect parties with contract performance location in China
  • Evidence is key (written contracts, emails, payment records)
  • European/American clients have higher success rates with clear evidence, but judgment enforcement is difficult if the counterparty lacks assets
  • Common pain point: parallel litigation (simultaneous trials in Chinese and foreign courts)

Need analysis for contract disputes?

Intellectual Property Disputes

Patent, trademark, copyright, and trade secret disputes with increasing protection for foreign IP

Subtypes

  • Patent Infringement

    Especially standard-essential patents

  • Trademark Infringement

    Brand protection and misuse cases

  • Copyright Disputes

    Creative work protection

  • Trade Secret Misappropriation

    European/American enterprises often sue Chinese former employees or competitors, but foreign plaintiffs less common as secrets must be disclosed

Applicable Laws

  • Patent Law
  • Trademark Law
  • Copyright Law
  • Anti-Unfair Competition Law
  • Civil Procedure Law foreign jurisdiction expansion (effective 2024, courts can accept cases more easily)

Success Insights

  • Chinese courts have strengthened protection of foreign IP in recent years, with more European/American enterprise victories (higher damage awards)
  • Beijing, Shanghai, and Guangzhou have specialized intellectual property courts
  • High counterclaim risk (Chinese enterprises may counterclaim for invalidation or reverse infringement)
  • Global anti-suit injunctions common (Chinese courts may prohibit foreign litigation)

Need analysis for intellectual property disputes?

Investment Disputes

Company and equity-related disputes involving foreign investment in China

Subtypes

  • Sino-foreign Joint Venture/Cooperative Enterprise Contract Disputes

    Partnership agreement conflicts

  • Equity Transfer and Shareholder Rights Disputes

    Stock and ownership conflicts

  • Company Establishment, Dissolution, and Liquidation Disputes

    Under new law, Chinese courts have exclusive jurisdiction

  • VIE Structure or Foreign M&A Related

    Complex cross-border investment structures

Applicable Laws

  • Company Law
  • Foreign Investment Law
  • Civil Code (Personality Rights, Property Section)
  • Civil Procedure Law (Exclusive Jurisdiction Clause)

Success Insights

  • Chinese courts have exclusive jurisdiction over Sino-foreign joint venture contracts (must be tried in China)
  • European/American investors often lose if violating China's foreign investment negative list
  • Evidence includes joint venture contracts, articles of association, board resolutions

Need analysis for investment disputes?

Tort Disputes

Product liability, online infringement, and personal/property damage cases

Subtypes

  • Product Liability

    European/American consumers or enterprises suing Chinese manufacturers for defective products

  • Online Infringement

    E-commerce platform sales of counterfeit goods

  • Personal/Property Damage

    Traffic accidents, tourism disputes

Applicable Laws

  • Civil Code (Tort Liability Section)
  • Product Quality Law
  • Consumer Rights Protection Law
  • E-commerce Law

Success Insights

  • Jurisdiction easily in China (place of tort)
  • European/American plaintiffs have moderate success rates, but damages are lower (limited punitive damages)
  • Evidence is difficult (requires notarization and authentication outside China)

Need analysis for tort disputes?

Labor and Employment Disputes

Employment contract disputes involving expatriate employees and Chinese companies

Subtypes

  • European/American Expatriate Employee Labor Contract Disputes with Chinese Companies

    Employment agreement conflicts

  • Executive Dismissal and Non-compete Restrictions

    High-level employment termination issues

  • Social Security/Welfare Disputes

    Benefits and compensation conflicts

Applicable Laws

  • Labor Contract Law
  • Labor Dispute Mediation and Arbitration Law

Success Insights

  • Chinese courts tend to protect workers (especially the weaker party)
  • European/American enterprises as employers are often at a disadvantage (double wages, high economic compensation)
  • Arbitration precedes litigation (arbitration first, then litigation)

Need analysis for labor and employment disputes?

Family and Personal Status Disputes

Cross-border family matters involving Chinese and foreign parties

Subtypes

  • Sino-foreign Divorce, Property Division, and Child Custody

    International marriage dissolution

  • Inheritance Disputes

    Foreigners inheriting property in China

Applicable Laws

  • Civil Code (Marriage and Family Section, Inheritance Section)
  • Law on Application of Laws for Foreign-related Civil Relations

Success Insights

  • Complex jurisdiction (habitual residence)
  • Property in China is easier to execute, but status relationships (like divorce) require consideration of foreign judgment recognition
  • European/American clients often involve cross-border property

Need analysis for family and personal status disputes?

Not sure which category fits your case?

Our AI-powered analysis can help identify the case type and predict success probability.

Case Types - LitigationAI | AIChinalaw