This article addresses what a Wholly Foreign Owned Enterprise (“WFOE”) operating in China should do to avoid ending up in court and, if it does, how the company can maximize its chances of winning the case. WFOEs enjoy the benefits of limited liability afforded businesses and the individual rights offered under Chinese civil law. Most WFOE's will need to deal with the Chinese courts' Civil Procedure Law and also should know how the litigation will proceed substantively, such as under contract law or as a foreign party, because it will impact strategy and legal outcomes. Most high-profile WFOE cases do not end in favor of the foreign party. So an entity litigating labor and employment issues or issues likely to impact international trade will likely lose. WFOEs need to also consider alternative dispute resolution mechanisms, such as arbitration in front of the China International Economic Trade Arbitration Commission (“CIETAC”). WFOEs embroiled in litigation in China’s courts of law can maximize their chance of success by engaging skilled, knowledgeable local counsel with knowledge of both domestic and international laws.