Tag Archives: Law

Shenzhen court rules on factoring case

A court in Shenzhen’s Nanshan district has set a precedent for disputes involving factoring contracts, the first apparently to be heard in a local court since China’s new Civil Law came into effect this year. The court judged that parties to a factoring contract cannot assign third-party insurance to the financing party, as this would violate the country’s laws governing the insurance industry by disadvantaging potential third-party claimants.

The dispute involved the owner of a trucking business who was sued by a financing company that had provided him with financing based on accounts receivables. Under such a (factoring) agreement, financing parties usually provide needed cashflow to businesses and then collect once their accounts receivables are settled, for an additional fee.

More details on SZNews

Guangdong to train ‘foreign-expertise’ lawyers

As Chinese companies increasingly “go out”, it is inevitable that they will need the services of lawyers familiar with the laws and regulations – not to mention the political environments – of overseas markets. However, it is not necessarily a given that they will use foreign law firms or lawyers.

Guangdong now has a college devoted to churning out lawyers who specialize in laws of other countries. As reported by local media, the Foreign-Related Lawyers College, believed to be the first of its kind in China, held an unveiling ceremony at Guangdong University of Foreign Studies on November 2. The college is a joint venture between the Guangdong University of Foreign Studies, Guangzhou Bureau of Justice and Guangzhou Lawyers Association.

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