✒ Besides the potentially onerous clauses, the use of Chinese law to govern cross-border loan could also be a concern, as a lawyer opined:

“The absence of case precedent in Chinese law means there would be a wide degree of discretion for courts to rule in a dispute.

You also have to consider that English law, New York law or even Hong Kong law, which are more commonly used in cross-border finance, [have been] developed in jurisdictions that are international financial hubs, Chinese law lacks that.”