Dennis Unkovic is a partner with Meyer, Unkovic & Scott LLP in Pittsburgh, Pennsylvania, and serves on the American Arbitration Association’s international and commercial arbitration panels. For 28 years he has represented U.S. multinational companies and foreign-based companies in international business transactions in the Far East (and elsewhere). He can be reached at firstname.lastname@example.org.
Since China has now surpassed America as the world’s top destination for foreign direct investment, commercial disputes between foreign investors and Chinese parties are on the rise. Arbitration is the preferred dispute resolution process in China. In this article, Dennis Unkovic, who spends two to three months each year in the Far East, explains what practical steps a foreign investor can take to increase the odds of enforcing a favorable arbitration award against a Chinese enterprise or partner.
Since the mid-1980s, I have watched China undergo a tremendous transformation. I remember Pudong, which I first visited in 1988, as not much more than an endless stretch of rice paddies located on the far side of the Bund in old Shanghai. Foreign companies were then just beginning to explore the prospects of establishing Chinese-based manufacturing operations. Over the last two decades, unprecedented levels of foreign direct investment have flowed into China, reaching as far as Central China and changing the faceof older industrial cities like Wuhan.