After foreign enterprises establish their subsidiaries in China (foreign invested en-terprises, the “FIEs”), such FIEs often find it difficult to obtain financing support from overseas finance institutions due to the foreign exchange control and loan restrictions. Therefore, financing directly within China is crucial. For some medium-sized enterprises and start-ups, when their business expands or grows to a particular size, going public may be a viable financing option to take into account. In practice, some FIEs have suc-cessfully listed and financed in China’s stock market, such as Beijing WKW Automotive Parts Co., Ltd. , Xiamen Cankun Industrial Co., Ltd. , AA Industrial Belting (Shanghai) Co., Ltd. , NBTM New Materials Group Co., Ltd. . FIEs listed after the promulgation of the Foreign Investment Law of the People's Republic of China (the "Foreign Invest-ment Law") include Zelgen Biopharmaceuticals , APsystems , etc.

The paper version of the business license owned by a company registered in China now is divided into one original and one duplicate. In addition to this, employees from different departments of a company need to use different media when logging into the systems of different national government departments. For example, the company's administrative staff needs to use a CA (i.e. One-Card-Pass, an U-key to connect with governmental system) for the disclosure of the company’s annual report and the finance staff needs to use a tax U-key to log into the E-tax Bureau.

A common phenomenon in business transactions is that there is no signed contract between the parties to the transaction and a large amount of business is conducted directly through purchase orders (by mail, electronically). In practice, the parties to a transaction usually refer to "their own" standard terms and conditions (hereinafter referred to as "GTC") in the order. For example: in the sale of goods, the seller mentions its standard delivery terms in his supply order, while the buyer mentions its standard purchase terms in its purchase order. Often, these two clauses are contradictory in some key areas, for example, when it comes to warranty rights or limitation of liability. Once a dispute arises after the transaction, both parties will insist on defending their claims under their own GTCs. So in this case, whose GTC will be applied under Chinese law? And what specific provisions will be applied? This article attempts to give some hints on the legal risks of applying the respective GTC to both parties of the transaction under Chinese law, in the hope that it will help multinational companies to manage their risks in their daily transactions.