If you happen to’re doing enterprise in China, you is likely to be tempted to ask your lawyer to step in and aid you negotiate together with your Chinese language counterpart. Nonetheless, this might be a giant mistake that might jeopardize your deal and your relationship. On this submit, I clarify how legal professionals play a special function in China than within the US, and how one can greatest talk together with your Chinese language accomplice with out involving your authorized staff.
The Position of Attorneys in China vs. the USA
Within the US and different Western nations, legal professionals are sometimes key gamers in enterprise negotiations. They’ve shut relationships with their shoppers, who view them as trusted advisors and negotiators. They’re concerned in each stage of the deal, from drafting the preliminary proposal to finalizing the contract that will get signed. In addition they often act as intermediaries between the events, speaking and resolving points or issues that come up alongside the way in which.
Attorneys in China typically don’t play the identical function in offers as legal professionals do within the U.S. Chinese language legal professionals are sometimes seen by their shoppers not a lot as trusted advisors or negotiators, however as technicians whose main function is to draft and finalize paperwork as instructed. They don’t seem to be sometimes concerned within the negotiation course of, which is dealt with by the businesspeople instantly. In addition they are inclined to have a lot much less affect over their shoppers, who usually make selections with out consulting them.
This distinction within the function and notion of legal professionals in China and the U.S. stems from numerous elements, comparable to:
- The authorized system and tradition in China are completely different from these within the U.S. China is a civil legislation nation, the place legal guidelines are codified and interpreted by the federal government, reasonably than a standard legislation nation, the place legal guidelines are based mostly on precedents and interpreted by judges, with the help/advocacy of legal professionals. This implies contracts in China are typically much less detailed and extra versatile than contracts within the US, which require extra specificity and readability.
- China is a high-context tradition, the place communication is implicit and oblique, reasonably than a low-context tradition, the place communication is specific and direct. Which means contracts in China are sometimes much less essential and extra symbolic than contracts within the US, which require extra negotiation and documentation.
The Dangers of Contacting the Chinese language Firm’s Lawyer
Given this distinction within the function and notion of legal professionals in China and the USA, it’s usually not advisable on your lawyer to contact the Chinese language firm’s lawyer instantly when negotiating a deal. Doing so might result in a number of misconceptions and detrimental penalties, comparable to:
- The Chinese language firm and their authorized staff would possibly interpret this transfer as a sign that you simply’re not taking the deal as severely as anticipated, as in case you’re outsourcing the negotiation course of to your authorized staff. This might harm your credibility and fame with them.
- The Chinese language firm and their authorized staff may additionally construe this transfer as an indication of distrust or perhaps a questioning of their competence. This might offend them and damage your relationship with them.
- Furthermore, contacting the Chinese language firm’s lawyer instantly would probably be futile and unproductive. Chinese language legal professionals are identified for his or her discreetness and deference. They not often disclose any data or opinions with out their shoppers’ consent or instruction. In addition they are inclined to keep away from any confrontation or battle with their counterparts. Subsequently, in case you contact them instantly, they’ll most likely say nothing greater than that they should seek the advice of with their shopper first.
The Finest Technique to Negotiate with Chinese language Firms
In mild of those dangers, our China transactional legal professionals often advise our shoppers to proceed negotiating with the Chinese language firm by written emails. That is often the simplest and acceptable approach to talk together with your Chinese language accomplice for the next causes:
- Written communication is most well-liked by Chinese language firms over oral communication. It is because their proficiency in written English tends to surpass their spoken English expertise. Written communication additionally permits them to have extra time to overview and reply to your messages.
- Written communication additionally supplies a transparent document of what has been agreed or mentioned between you and your Chinese language accomplice. This can assist stop any misunderstandings or disputes which may come up in a while.
- Written communication additionally lets you contain your authorized staff in a discreet and oblique method. You may seek the advice of your lawyer earlier than sending any emails to your Chinese language accomplice and have them overview and revise any paperwork or contracts that you simply obtain from them. This manner, you may be sure that your authorized pursuits are protected and that your contracts are compliant with each Chinese language and US legal guidelines.
