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For foreign buyers

Problems with a Chinese supplier?

China-side legal support for foreign buyers facing non-delivery, refused refunds, lost deposits and defective goods. Our Beijing team deals with the supplier directly in Chinese; where that does not resolve it, a licensed Chinese law firm takes the formal route — preservation, litigation or arbitration, and enforcement.

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Start with what happened

Which of these is your situation?

Money

The supplier won't refund

The order was cancelled, or the supplier agreed to repay — and the money has not come back.

What to do next →
Delivery

You paid, but nothing shipped

Deposit or full payment made, the delivery date has passed, and the excuses keep changing.

Non-delivery options →
Quality

The goods arrived defective

Below specification, damaged or not what was ordered — and the supplier disputes it or offers a token discount.

Defective goods claims →
Deciding

You are not sure which route fits

Negotiate, send a lawyer's demand, freeze assets, arbitrate or sue — a decision table by situation.

Recovery guide →
Proceedings

You have decided to sue

Who the defendant is, which forum, the documents you sign abroad, and whether you need to travel.

How to sue a supplier →
Urgent

The supplier may be moving assets

A new company at the same address, a changed legal representative, or an account going quiet.

Freezing assets →

Most supplier disputes are decided by three facts you can check early: which Chinese company actually took your money, what evidence you hold, and whether that company still has assets in China. The legal route follows from those — not the other way round.

What to do this week

  1. Stop paying and stop releasing anything. No balance payment, no further deposits, no new moulds, samples or drawings until the position is clear.
  2. Identify the company. You need its registered Chinese name and 18-character Unified Social Credit Code, and the name on the bank account you paid. If the account holder is a different company or an individual, that changes the case.
  3. Export the record. Purchase orders, pro forma invoices, bank transfer slips, emails and WeChat or WhatsApp chats — exported in full, with dates. An admission in a chat message is often the strongest document you will have.
  4. Put your demand in writing, with a date. A clear written demand for delivery or refund, with a final deadline, matters later: for terminating the contract and for your limitation period.
  5. Watch for signs that assets are moving. A changed legal representative or registered address, or a new company with a near-identical name, means you should consider freezing assets before you warn the supplier.

Your options, by situation

First moves in a dispute with a Chinese supplier (general guidance; the right step depends on your facts)
SituationUsually the first move
Supplier still trading and admits it owes youDirect negotiation in Chinese, then a lawyer's demand letter with a deadline; get any refund promise in writing
Supplier ignores youEntity and asset check, then a formal demand from a Chinese law firm
Signs that assets are being movedPrepare the claim and an asset preservation application together, before warning the supplier
Contract has a valid arbitration clauseArbitration at the named institution; preservation is applied for through it
No dispute clauseChinese court, generally where the supplier is domiciled or where the contract is performed
Money was paid to a different company or a personEstablish who received it before spending on proceedings
Supplier appears to have closed or has nothing leftCheck shareholders and unpaid capital before litigating
Small amountA commercial settlement, or setting it off against other orders, may cost less than any legal route

The reasoning behind each row is in how to recover money from a Chinese supplier.

What we do in China

  • Deal with the supplier directly. Our Beijing team contacts the supplier in Chinese, by phone and in writing, and presses for delivery, a refund, replacement or repair — within the scope you agree.
  • Verify the company and look for assets. Registered identity, shareholders, litigation and enforcement history, and signs that assets are being moved.
  • Send a demand from a licensed Chinese firm. On the firm's letterhead, under its seal, with the handling lawyer's name and practising licence number, and with a deadline.
  • Take the formal route when it is needed. Asset preservation, litigation or arbitration, and enforcement of the result.
  • Handle other supplier problems too: wrong goods or short shipments, defective machinery, moulds and tooling a factory will not return, a price increase after the deposit, and a supplier that has stopped responding.
Bought through an online platform?
A platform's own dispute process can only be run by the buyer, from the buyer's account. We can help you prepare for it, and we act outside it: dealing with the supplier directly and, where the sums justify it, bringing a claim against the supplier in China.

Fees

It is free to submit your case. We reply within one business day, Beijing time. If we can help, you receive a written scope and quote before any work starts, and nothing starts without your written approval. Court fees in China are fixed by regulation — RMB 13,800 on a RMB 1,000,000 claim — and are set out in how much it costs to sue a Chinese company.

What we will not tell you

  • We do not promise that you will get your money back. Whether a supplier pays depends on facts no one controls, including whether it still has assets.
  • We will tell you when a claim is not worth bringing. If the amount is small or the company has nothing left, you will hear that at the start.
  • We are a law firm, not a collection agency. Only a licensed Chinese law firm can represent you in Chinese courts and arbitration.

Frequently asked questions

Can a foreign company sue a Chinese supplier in China?
Yes. Foreign companies bring claims in Chinese courts and before Chinese arbitration institutions routinely. The contract decides whether it is a court or arbitration; with no dispute clause, a court where the supplier is domiciled or where the contract is performed generally has jurisdiction.
Do I need to travel to China?
Usually not. A Chinese law firm acts under your power of attorney. Documents signed abroad generally need notarisation and, for countries in the Apostille Convention, an apostille; China joined the Convention with effect from 7 November 2023.
The supplier is ignoring me. What changes if a Chinese law firm writes?
The supplier now faces a demand from a Chinese firm, in Chinese, with a deadline and a clear next step. It also gives you a dated, provable demand for later proceedings. It does not force payment by itself.
Can I freeze the supplier's bank account?
Yes, where there is urgency. A court decides an urgent preservation application within 48 hours, security is required (commonly a preservation insurance policy), and after a pre-action freeze you must start proceedings within 30 days. The court's preservation fee is capped at RMB 5,000.
How much does it cost to start?
Submitting your case is free. If we can help, we send a written scope and quote before any work begins. Court fees depend on the amount claimed, for example RMB 13,800 on a RMB 1,000,000 claim.

Related reading

Selling to a Chinese customer that has not paid you? See China debt recovery.

This page is general information for foreign companies, not legal advice on any specific matter. Rules and practice change; please take advice on your facts.

Tell us what happened

Send the order, the payment record and your last exchange with the supplier. Free to submit; we reply within one business day, Beijing time.

Submit your case Email the firm

Who handles your case: Aaron Lv, Partner →