Since I smacked Will Lewis around a bit yesterday, it is fitting that I send out a recommendation for his post on choice of law clauses (in the sales context). As a practitioner, I usually do not delve this deeply into the academic arena on this sort of issue, but it certainly is interesting. Good stuff for all you China law wonks out there, or anyone else who is responsible for cross-border sales contracts.
One cautionary note. Will's post is coming to you from an academic sense regarding choice of law. He is not talking about enforcement. These are two different, albeit related, things, and dispute resolution realities can having a very significant effect on choice of law as well. I look at this from a practical standpoint.
Example: you may wish to have California law as the governing law in your agreement. However, if you also would like to specify that the courts in Qinghai will hear any disputes between the parties, you may wish to reconsider using California law — it's doubtful that the judges in Qinghai have California law experts, and they will not take kindly to requests that experts be flown in for the occasion.
Other than that caveat, enjoy the wonkiness!