Sue a Company in China: What Will Be Considered as Contracts by Chinese Judges
You have to prove the specific transaction agreed in the contract during the lawsuit in China.
You have to prove the specific transaction agreed in the contract during the lawsuit in China.
You can publish a notice in a provincial or national newspaper in China, or in the People’s Court Daily(人民法院报) of the Supreme People’s Court of China.
What evidence should you prepare? Documentary evidence (physical documents), electronic documents, and recordings are all necessary in this regard.
Good news for the creditors with a US judgment! Now, American civil/commercial judgments are highly likely to be recognized and enforced in China.
You should perform verification or due diligence on a Chinese supplier to find out whether he/it has the capability to perform contracts before you make a contract with the supplier. You can ask us for free verification service.
There are three things you can do to get your deposit or advance payment back from a defaulting or fraudulent Chinese company: (1) negotiate a refund, (2) claim liquidated damages, or (3) terminate the contract or order.
If you get a winning judgment or arbitral award, and the property that can be used to repay debts is located in China, then the first thing you need to know is the enforcement mechanism in the Chinese courts.
There are five things you need to do to get ready: 1) find the legal Chinese name of the Chinese company, 2) decide whether to sue in China, 3) if yes, hire a local Chinese lawyer, 4) evaluate the costs and benefits of litigation, and 5) prepare in advance evidence that Chinese courts would like.
In China, courts charge much less than arbitration institutions. But if there is an appeal, the cost of litigation is not much cheaper than the cost of arbitration.
If a Chinese company affixed a fake official company seal when signing a contract with you, probably you are in a scam.
If a Chinese supplier commits any default or fraud, there are four measures you can take to get your money back: (1) negotiation, (2) complaint, (3) debt collection, and (4) litigation or arbitration.
If you have a dispute with a Chinese company, would you choose litigation or arbitration in China? Perhaps you should first understand the advantages and disadvantages of litigation and arbitration in China.
You should prepare sufficient documentary evidence prior to filing a lawsuit, preferably provided or presented by the other party. In some cases, you can also rely on the court to collect evidence for you.
Roughly speaking, if you claim USD 10,000, the court cost is USD 200; if you claim USD 50,000, the court cost is USD 950; if you claim USD 100,000, the court cost is USD 1,600.
You can terminate the contract with this supplier so that you can claim back your paid amount.
No. In fact, it won’t be any harder than if you were to sue any other company.
When your Chinese suppliers or distributors defraud or default, where will you file the lawsuit? China or somewhere else (eg. the place of your domicile), provided that both have jurisdiction over your case? To answer these questions, we need to compare the litigation in China with that in other countries.
If you are required to pay a deposit or make a prepayment before you can get the goods delivered by Chinese suppliers, then you need to beware of moral hazard. The best way is to find a trustworthy company and sign a good contract.
You can claim debt recovery from its shareholders. Normally, due to the very nature of companies (legal persons), it is very difficult for you to claim debt recovery from a Chinese company’s shareholders. Once the company is canceled, however, you will have opportunities to do so.
You are entitled to unilaterally terminate a contract with a Chinese company only if the conditions for rescission as agreed in the contract or under Chinese law mature. Otherwise, you can only terminate the contract with the consent of the other party.