Author(s)

Yousheng Cui

Corresponding Author

Yousheng Cui

Abstract

In the current era of deepening global economic integration, cross-border trade has become a crucial path for enterprises to expand their development space, yet complex legal risks persist alongside it. From contract signing to intellectual property (IP) protection, from responding to trade barriers to exchange rate and payment management, enterprises face challenges in all aspects of cross-border operations due to differences in legal systems, policy changes, and conflicts in business practices. These risks may not only cause huge economic losses to enterprises but also endanger brand reputation and market share, and even negatively impact the stability of the global industrial chain. An in-depth analysis of the legal system of cross-border trade reveals that international treaties, domestic regulations, and trade practices together constitute the legal framework for enterprise operations. International norms such as World Trade Organization (WTO) rules and the United Nations Convention on Contracts for the International Sale of Goods (CISG) provide fundamental guidelines for trade activities, while differentiated regulations in import-export controls, tax policies, and IP protection across countries form specific compliance thresholds. Although international trade practices are not legally binding, they have become an important tool for enterprises to reduce legal risks in practice by clarifying transaction rules and minimizing dispute points. Specifically, in terms of risk types, legal risks in contracts mainly stem from the virtuality of contracting parties, ambiguity of clauses, and uncertainties in performance; dual risks of IP infringement and inadequate protection are particularly prominent in technology-intensive and brand-dependent industries; dynamic adjustments of tariff and non-tariff barriers directly affect enterprises' cost control and market access; legal pitfalls in exchange rate fluctuations and payment method selection pose severe challenges to enterprises' financial stability. These risks are intertwined, requiring enterprises to establish a systematic and dynamic risk management system. Effective risk management should run through the entire process of "identification, assessment, response, and monitoring". In the risk identification and assessment stage, enterprises need to use methods such as contract review, regulatory tracking, and case analysis, combined with tools like risk matrices and Monte Carlo simulation, to accurately locate high-risk areas. At the prevention and response level, a comprehensive prevention and control system should be established, covering legal affairs departments, standardized processes, professional training, and big data warning, with differentiated strategies developed for different risks (e.g., full-cycle contract management, localized IP layout, supply chain optimization). In dynamic monitoring, a three-dimensional mechanism should be adopted to capture real-time changes in policies, counterparty credit, and contract performance, with risk control strategies iterated periodically based on data feedback to ensure dynamic adaptation to the trade environment. It is worth noting that legal risk management in cross-border trade is not a unilateral task for enterprises. Collaborative support from governments, industry associations, and professional service organizations is equally critical. For example, governments can reduce institutional barriers by promoting regional trade agreements; industry associations can organize joint responses to anti-dumping investigations; and legal intermediaries can provide precise compliance advice. Such a multi-stakeholder collaboration mechanism constructs a more comprehensive risk protection network for enterprises from macro-policies to micro-operations. Looking ahead, with the expansion of new fields such as digital trade and green trade, legal risks in cross-border trade will assume new forms and characteristics. Enterprises need a more forward-looking perspective to continuously optimize risk management strategies, seizing global market opportunities while operating in compliance. Only by integrating legal risk management into the core of corporate strategy can enterprises achieve stable development in the complex and ever-changing international economic and trade environment, contributing to the stability and prosperity of the global trade order.

Keywords

Cross-Border Trade; Legal Risks; Risk Management; Contract Legal Risks; Intellectual Property Legal Risks; Trade Barriers; Exchange Rate Risks; Payment Risks