Is legal recourse meaningful in a Starwood-Anbang dispute?

China is notorious for its weak rule of law; it's not known if a Chinese court would enforce a US ruling against Anbang

AMONG the many issues Starwood Hotels & Resorts faces in negotiating a deal with Anbang Insurance Group, a secretive Chinese insurance giant, is a stark one: Any deal Starwood negotiates may not be worth the paper it is printed on.

The enforcement problem may arise because Anbang is based in China. If the Anbang-led consortium wins its bidding contest against Marriott International and enters into an agreement to acquire Starwood, that agreement will become the main way Starwood would force Anbang to complete the transaction if financing issues or any others come up. As with any agreement, if one party fails to honour the terms, Starwood would have to sue Anbang to enforce the deal.

This is where...

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