When you have paid a Chinese supplier and nothing has arrived, first establish which problem you have: the supplier has not shipped, the goods were shipped but lost or held in transit, or you paid someone who was never going to ship. Each has a different first step. For a supplier that has not shipped, a written deadline followed by termination is what turns a delay into a claim for your money back.
- Check the shipping documents first. A bill of lading or tracking record tells you whether the problem is the supplier or the transport.
- If the payment details were changed by email, call your bank today. That is a sign of payment fraud, and speed matters for recalling a transfer.
- Set a final deadline in writing. If the supplier still does not deliver, you can terminate (Civil Code Art. 563) and claim the payment back with damages (Art. 566).
- Stop paying. No balance payment and no new deposits until the goods are shipped or the money is returned.
- Watch for signs the company is emptying out — and consider freezing its assets before you warn it.
1. Three situations that look the same from abroad
| Situation | Signs | First step |
|---|---|---|
| Supplier has not shipped | Production delays, changing ship dates, requests for the balance before loading | Written deadline, then termination and a refund demand |
| Shipped, but not arrived | A bill of lading or tracking number exists; the carrier or port has the goods, or they are lost | Check the shipping terms and the carrier; the claim may lie against the carrier or insurer rather than the supplier |
| Possible fraud | Bank details changed by email; account name differs from the supplier; company not registered or recently deregistered; contact person unreachable | Contact your bank at once; verify the company; report to the police |
Most cases are the first kind. A real factory that has taken your deposit and then prioritised other orders, raised its prices, or run short of cash is a commercial debtor, and the usual legal tools work against it.
2. If the goods were shipped
Ask for the bill of lading, the booking confirmation and the tracking record, and compare them with the shipping term in your contract (for example FOB or CIF). Under many shipping terms, risk in the goods passes to the buyer when they are handed to the carrier, so loss or damage at sea may be a matter for the carrier or your cargo insurer rather than the supplier. A supplier that cannot produce a genuine bill of lading after claiming to have shipped is a different matter, and you should treat the case as non-delivery.
3. If you may have paid a fraudster
Payment diversion is common: an email that appears to come from the supplier announces new bank details, and the money goes elsewhere. If the account name does not match the supplier's registered Chinese name, or the details were changed by email without a call to a known contact, ask your bank immediately whether the transfer can be recalled, and report it to the police in your country. The real supplier is usually not liable for money you paid to someone else, so check this before you pursue the supplier.
4. If the supplier has not shipped: set a deadline, then terminate
- Send a written demand with a final date. State the order, the amount paid, the missed delivery date and the new deadline. Under Civil Code Art. 563, if the supplier delays its main obligation and still does not perform within a reasonable period after being asked, you may terminate the contract.
- Terminate by notice. Termination takes effect when your notice reaches the supplier (Art. 565). The deadline notice can itself say that the contract terminates if the goods are not shipped by the date given.
- Claim restitution and damages. After termination the supplier must return what it received, and you can still claim damages for its breach (Art. 566), such as the extra cost of buying the goods elsewhere, within the limit of losses it foresaw or should have foreseen (Art. 584).
If your contract is governed by the CISG, the steps are similar: fix an additional period for delivery, and if the goods do not arrive within it, declare the contract avoided. Keep proof that each notice was delivered. A notice from a Chinese law firm, in Chinese, with a delivery record, is easy to prove and often produces either the goods or a refund offer.
If the supplier offers to refund instead of shipping, get that in writing with dates and the company seal; what to do when the refund does not come covers the next steps.
5. Evidence to collect now
- Contract or pro forma invoice, purchase order and any specifications.
- Bank transfer records showing the receiving account name and number.
- Every message about the delivery date, in full and with dates: email, WeChat, WhatsApp.
- Any document in which the supplier admits the delay or the amount received.
- The supplier's registered Chinese name and Unified Social Credit Code.
Chinese courts accept electronic data, including chat and email records, as evidence. Your power of attorney, and official documents issued abroad such as your certificate of incorporation, need notarisation and an apostille or equivalent; see how to sue a Chinese supplier from overseas.
6. Getting the money back
The escalation route is the same as for any supplier debt: negotiation in Chinese, a Chinese law firm's demand, asset preservation where there is a risk the money will disappear, then arbitration or court proceedings under your contract, and enforcement. Court fees are fixed by regulation, for example RMB 13,800 on a RMB 1,000,000 claim; see what it costs to sue.
The limitation period for disputes over an international sale of goods contract is four years (Civil Code Art. 594). That sounds long, but a supplier that is not shipping may be running out of cash, and the chance of recovery falls as time passes.
When to bring in a China lawyer
If the deadline has passed, the supplier has stopped responding, or you see signs that its business is closing, a Chinese law firm can verify the company, check for assets and act quickly. Our China supplier disputes page explains how we act for foreign buyers, and how to recover money from a Chinese supplier sets out which route fits which situation.
Frequently asked questions
Check whether the goods were shipped by asking for the bill of lading or tracking record, confirm that the account you paid belongs to the supplier, and stop any further payments. If the supplier simply has not shipped, send a written demand with a final delivery date.
Generally yes, if the supplier has delayed its main obligation and still does not perform within a reasonable period after your demand. Under PRC Civil Code Art. 563 you may then terminate by notice, and under Art. 566 the supplier must return what it received, while you keep the right to claim damages.
It depends on the shipping terms. Under many terms risk passes to the buyer when the goods are handed to the carrier, so a loss in transit may be a claim against the carrier or your cargo insurer. If the supplier cannot produce a genuine bill of lading, treat it as non-delivery.
Treat it as possible payment fraud. Contact your bank at once about recalling the transfer, report it to the police, and compare the account name with the supplier's registered Chinese name. The real supplier is usually not liable for money paid to someone else.
Four years for disputes over an international sale of goods contract under PRC Civil Code Art. 594. Acting early matters more than the deadline, because a supplier that is not shipping may be running out of cash.
Sources
- National Database of Laws and Regulations — PRC Civil Code, Arts. 563, 565, 566, 584 and 594 (Chinese text).
- UNCITRAL — United Nations Convention on Contracts for the International Sale of Goods.
- National Enterprise Credit Information Publicity System — company registration details.
- Internal: supplier won't refund · freezing assets · China supplier disputes
This article is general information for foreign companies, not legal advice on any specific matter. Rules and practice change; please take advice on your facts.