Whoever years visited China regularly during recent years, could not overlook the rapid developments Chinese cities are currently undergoing. Chinese cities are trying to cope with the enormous changes in urban development and are trying to make them up in just a few years instead of decades.
The Chinese arbitration organisation specified in the standard supply contract is better known under the abbreviation CIETAC.
It is subordinate to the jurisdiction of the Chinese Council for the Promotion of International Trade (CCPIT) and it is the arbitration organisation that will be typically suggested by the Chinese side to ask for settling a disagreement.
The first possibility of how a foreign company can establish itself in China is through the establishment of a Representative Office (RO) in China. A Representative Office in China is not a separate legal entity but is considered to be part of its parent company. It is the most basic form of foreign investment and can be very useful, and in some cases even necessary, for most administrative decisions concerning the establishment of a business.
Before a foreign company is allowed to establish a RO in China the relevant authorities will have to approve the request and the registration of the office has to be completed.
Once the documents have been submitted to the relevant approval authority, the approval authority will review the documents and decide whether it will approve the registration and establishment of a RO in China.
