With the development of China’s economy, more and more foreign investment enters into the domestic market. Foreign investors may be looking forward to sharing the achievements of the development of China’s economy, or they may have already had business in China. However, things won’t remain propitious forever. Foreign investors have to deal with lawsuits in China. They are generally in a disadvantaged position for that they are not quite clear about Chinese laws.

If you are a businessman having business in China or preparing to do so, it is an honor for me to provide you with some personal ideas about matters that you had better know about the trials in Chinese courts. I have to say that it’s really a pity that I cannot show you the differences between the specific Chinese and foreign legal procedures, because I’m not quite familiar with those provisions of foreign laws. But according to my experience, I want to remind you of some points that might be helpful.

AFTER RECEIVING THE DOCUMENTS, HURRY UP!

Once you receive the notice of accepting the case and the notice for responding to the suit form the people’s court, please be serious and react immediately.
You have to spend a lot to submit the requisite materials before the deadline because it’s a hard job to complete the work within the time limit. The time limit is short and the work is time-consuming.

1. Time Limit for Producing Evidences
The time period for producing evidences may be agreed upon by the parties concerned and be affirmed by the people's court.
If the time period for producing evidences is designated by the people's court, the designated time period shall be not less 30 days, starting from the next day when the parties concerned receive the notice of accepting the case and the notice for responding to the suit.
Generally speaking, the time limit for producing evidences will be 30 days. During this period of time, you have several tasks to fulfill.

1.1 To Look for a Lawyer
You may need to look for a good Chinese lawyer to help you in the trial. It’s not an easy job for a foreigner to find an appropriate person in a short time. Several days seem to be inadequate. Afterward the lawyer will have to think how to answer the charge. It also takes time.

1.2 To Prepare the Requisite Materials
At the same time, you should prepare the requisite materials such as business licence, copies of the evidences and so on.
Here, you have 3 tasks.

1.2.1 To decide what should be submitted as evidence
You have to select the materials favorable to you form a large number of materials. It may be cumbersome and time-consuming.

1.2.2 To notarize the materials if they are formed overseas
If the evidence submitted by the parties concerned is formed beyond China’s territory, the evidence shall be subject to the certification of the notarization organ of the country concerned and shall be authenticated by China’s embassy stationed in the said country, or shall be subject to the certification formalities as provided in the relevant treaties concluded between China and the said country.
This process is complicated and may probably take 2 to 3 weeks.

1.2.3 To translate the materials into Chinese if they are in foreign languages
If a document in a foreign language is submitted as evidence, a Chinese translation shall be appended.
It is likely that one week is needed to translate the English version of the materials into Chinese.
Let’s have a simple calculation:

1. 5 days for looking for a lawyer;
2. 15 days for notarization;
3. 7 days for translation.

Then 27 days have passed in all. However, you only have 30 days for adducing evidences. If you cannot react immediately after receiving the legal documents, you may have to bear the risk that you shall be deemed as giving up the right to produce evidences.

2. Time Limit for Applying for Authentication
The parties concerned who apply for the authentication shall make the application within the time period for producing evidences.
If any party concerned who bears the burden of proof for the matters that need to be authenticated fails to file an application for authentication within the time limit prescribed by the people's court or fails pay in advance the expenses for authentication or refuses to provide relevant materials without justification so that the facts under disputes cannot be affirmed by way of a conclusion of authentication, it shall undertake the harmful consequences of inability to produce evidences.
If you cannot act according to such provisions, you may lose your right to call for authentication. Therefore, you should submit the application and provide relevant materials in time.
Therefore, you have to hurry up once you receive the legal documents. There’s inadequate time for you to finish everything within such a short time.

ONCE THE LAWSUIT BEGINS, BE PATIENT!

Please be patient once the lawsuit begins for that you cannot expect that the lawsuit will be closed within one day or two (In particular the case need Applying for Authentication). On the other hand, the time limit of the trial of a civil case involving foreign elements is different form other civil cases. The facts may be more complicated and it is more difficult for the people’s court to make a decision.

1. Time Limit of the Trial of a Civil Case Involving Foreign Elements
The time limit of the trial of a civil case involving foreign elements is governed by specific provisions.
In general situation, a people’s court shall complete the adjudication of a case to which ordinary procedure is applied within six months after the case is accepted. When adjudicating an appeal from a judgment, the people’s court shall make a final judgment within three months after the appeal was accepted for an adjudication of second instance.
The people’s court will close a case of first instance or an appealed case within the time limit provided as above.
However, the time period for handling a civil case involving foreign elements by the people’s court will not limited to the two time period above.
On the other hand, it is provided that civil cases involving foreign elements shall be concluded within 3 months after the end of the court session.
This is a restriction for the people’s court to try a civil case involving foreign elements.
But what’s the deadline of the end of the court session? It’s hard to say. It depends on the facts of the case. If the case is complicated, the people’s court may need more time to make its decision.
Therefore, once the lawsuit begins, we cannot tell you the definite time period that the people’s court will close the case. We should make a concrete analysis of concrete conditions. Excessive apprehension is meaningless and useless. It’s unreasonable for you to worry about the time limit of the trial.

2. Time Limit of the Trial of an Appealed Case
In trying an appealed case against a judgment, a three-month extension may be given subject to the approval of the president of the said court, where an extension of the term is necessary for special circumstances,.
It means that we can have another 3 months if it is necessary. There’s no need for you to be anxious about the time limit of the trial of an appealed case. Through the application of the extension of the term, we can have sufficient time to deal with the trial.

Relevant laws:

Article 248 The time period for handling a civil case involving foreign elements by the people’s court shall not be limited by the provisions of Article 135 and 159 of this Law.

In short, I think you should react as quickly as possible once you receive the legal documents. Please try your best to finish preparing for the procedures. If you fail to do so, you may lose your rights related. However, after the trial is started, you should keep patient. The time period of the trial is uncertain and I think the lawyer will help you deal with the case. After all, I think you should pay enough attention to Chinese laws prior to the happening of a lawsuit. Enough knowledge about Chinese laws may help you avoid many potential risks, and make your business in China easy.