LAWS-6931 - Dispute Resolution in Asia - Ozco - Law Assignment Help

Assignment Task

Facts only for Question 1 ChinaSteel is a state-owned enterprise in China and is CCS’s largest coal buyer. However, because ships carrying Australian coal are not allowed to enter Chinese ports due to the scenario outlined above, ChinaSteel decided to look for other suppliers. AusCoal recommends its subsidiary in Indonesia, IndoCoal, to CCS. IndoCoal specializes in producing and exporting high-quality Indonesian coal. ChinaSteel has basically agreed to sign a sales contract with IndoCoal and AusCoal. This contract provides that ChinaSteel shall buy Indonesian coal worth of RMB 250 million (AU$ 50 million) from IndoCoal. The coal will be shipped from Indonesia to China. However, they have disagreement on the drafting of the dispute resolution clause in their sales contract. IndoCoal and ChinaSteel are concerned about burgeoning costs and delays in international arbitration, so agree to resolve all disputes arising from the sales contract through a cross-border litigation process.

Question 1

Advise IndoCoal and AusCoal about the risks and issues to resolve their disputes in (1) regular courts in China, Australia or Indonesia, or (2) international commercial courts in either China or Singapore. You should also discuss the procedural issues to recognize and enforce foreign judgments in Australia, China, and Indonesia, respectively.

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