Collecting debts from international clients is hard enough, but the process becomes even harder when trying to collect a debt from a Chinese business partner whose culture and language are completely different from yours.
You should avoid dealing with a company in suspension, revocation, liquidation or deregistration because it is incapable of performing contracts. Otherwise, you will be exposed to substantial losses and probably fail to claim damages from such a company.
When you decide to sue a Chinese company, where will you file the lawsuit? China or your own country, provided that both have jurisdiction over your case?
You should terminate the contract before considering whether to claim compensation from him.
You need to find the legal Chinese name of the Chinese company, otherwise you cannot be sure who is dealing with you and whom you should ask to execute your contract.
You can find the information of this company on the official website of the Chinese company registration authority.
If the content of the purchase order or contract entered into between you and the Chinese company is very simple, Chinese court may refer to China’s Contract Law to interpret your transaction between the Chinese supplier.
Of course, you can sue a manufacturer in China. It will not be any different, in terms of complexity and costs, from suing companies in other countries.
You’d better not turn your back on your deals with Chinese suppliers. You shall terminate your contract in accordance with reasonable procedures.
When you make payments to Chinese suppliers, they may ask you to pay to several different bank accounts that may not belong to themselves.
First things thing, you need obtain its legal Chinese name. Then you need have a check up on the offcial website of the Chinese company registration authority, to see whether the company is legit.
If the contents of the purchase order or contract between you and the Chinese supplier are very simple, a Chinese court may refer to China’s Contract Law to interpret your transaction between the Chinese supplier.
You should verify a Chinese company before entering into a contract to avoid dealing with a dishonest judgment debtor who has lost the capability to perform contracts.
If you believe that the Chinese company does not comply with the NNN agreement, you may resolve the dispute via arbitration outside of China and enforce the arbitral award in China.
