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Market Evaluation of China
As far as legal disputes are concerned, the Chinese government handles civil disputes in the exact fashion that the U.S. does. The parties in dispute may handle the matter at first through placation. If this does not suffice to either party, they may apply for arbitration, through a government run organization called the China International Economic and Trade Arbitration Commission (CIETAC). If arbitration fails, or either party does not agree to it, the dispute would be settled through normal litigation procedures. A business can file a suit in either basic-level or intermediate courts, depending on the dispute. However, most observers remark that Chinese courts are not up to international standards. Most judges do not even have any legal training whatsoever, so dispute resolution is recommended to take place either in the form of placation or arbitration ("Disputes with Chinese Companies or Individuals"). Therefore, as a result, many companies operating in China will try and keep disputes to a minimum. This is exactly what any company entering the Chinese market should focus on. By keeping disputes to a minimum, your company's success in the Chinese market is that much more probable.
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