John Tang

Wednesday, June 15, 2011

Lost in Translation?

When doing business in Asia, often your partner/employee/agent does not speak English as a first language (if at all). Most of the time you will need to communicate through a translator. For day-to-day communications a loose translation of your message is sufficient. However, when it comes to entering into contracts, you have to ensure that not only the translation is correct, but it is legally sound.

English has been the dominant language for doing international business for so long that we tend to insist that a contract be in English and the other side adjust to our needs. As the global economy changes, this can be very bad practice for several reasons: (1) you are alienating a large segment of the market and losing out on potential business; (2) you are relying on the other side’s English abilities to be able to communicate effectively; and (3) under certain circumstances, it is just not legally allowed. Given the above, it is always a good idea to have your contracts translated into the native language, but be aware…

One of the most important things you can do as a businessman in Asia, is to find a capable, knowledgeable and trust worth translator. As I mentioned before, there are two important aspects to translating a document: (1) ensure the idea is translated accurately; and (2) make sure it is still legally enforceable after being translated.

Many translators can translate a document with great technical skills, but they do not grasp the underlying essence of the communication. You want to find a translator that will be able to take the idea in English and accurately recapture it in Chinese. The exact order and wording is not as important as the communication.

Lastly, you want to ensure that everything that is translated is still legally enforceable. Take for example a non-competition provision that lasts for 5 years with a liquidated damage provision. A translator can easily translate that into the native language, but only someone with legal knowledge can tell you that it would not be enforceable in China. Also, certain wording has very special meanings that may not translate directly. For example, the word “shall” states a requirement for one party to do something, verses the word “may”, which suggests some discretion. It would be imperative for your translator to make the distinction and capture it in the translated document.

So remember…get things translated and ensure it is translated well, then you won’t ever hear the phrase “lost in translation” again.