What Are Court Costs in China?
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.
Month: December 2021
Verification for Free: Which Status of a Chinese Company Is Legit?
Chinese company registration status is divided into several types. Except for existence, all others are abnormal operating status.
What Should I Do if the Supplier in China Disappears?
You can terminate the contract with this supplier so that you can claim back your paid amount.
Is It Hard to Sue a Chinese Company?
No. In fact, it won’t be any harder than if you were to sue any other company.
Suing in China vs Suing in Other Countries: Pros and Cons
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.
How to Do I Due Diligence on Chinese Companies to Avoid Scams?
If you are required to pay a deposit or make a prepayment before you can get the goods delivered by a Chinese supplier, then you’d better do a due diligence on the Chinese supplier beforehand.
How Do I Know if a Chinese Company Is Legitimate and Verify It?
How Do I Know If a Chinese Company Exists Legally? You can search the information of the enterprise in China’s National Enterprise Credit Information Publicity System.
How to Avoid Fraud by Chinese Company: Find Trustworthy Company & Write Good Contracts
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.
What Happens to My Debts When a Chinese Company Is Dissolved or Goes Bankrupt?
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.
How Do I Terminate a Contract With a Company in China?
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.
Enforcing Arbitral Awards in China While Arbitration in Another Country/Region
Can I initiate arbitration proceedings against Chinese companies in my country and then have the awards enforced in China? You probably don’t want to go to faraway China to sue a Chinese company, and you don’t want to agree in the contract to submit the dispute to an arbitration institution that you don’t know about.
Enforcing Judgments in China While Litigation in Another Country/Region
Can I sue Chinese companies in a district court in California, U.S., or in Paris, France, and then enforce a judgment in China from those courts? Most likely, you don’t want to have to go so far away as to sue a Chinese company. You may just want to take your case in the court on your doorstep because you are more familiar with your home state.
Can Foreign Arbitral Awards Be Enforced in China?
Most of the foreign arbitral awards are enforceable in China. In 2019, the foreign arbitral awards are recognized and enforced, with a success rate of 87.5%. In 2018, the success rate is 87.5% too.
Can I Claim Compensation for the Loss That I Compensate My Customers All Caused by Chinese Supplier’s Fraud or Breach of Contract?
You should state in your contract such loss may be incurred in advance. As such, at least you should inform the supplier of such loss in the course of execution of the contract and seek his/her consent.
Can I Sue the Chinese Supplier Only With Emails Instead of a Written Contract?
Chinese courts prefer to accept written contracts with the parties’ signature.
However, with certain preparations made, contracts and orders confirmed by emails may still be accepted by Chinese courts.
Find China Supplier’s Legal Name in Chinese to Avoid Scams
If you find a China supplier’s legal name in Chinese, you can initiate an action before a court or file a complaint against it. If not, you cannot do anything. All Chinese individuals and enterprises have their legal names in Chinese, and they have no legal or standard names in foreign languages.
3 Things You Have to Know About How Chinese Judges Think in Commercial Litigation
Chinese judges lack commercial knowledge, flexibility and time to understand transactions beyond the contract text.
Sue a Company in China: Who Can Give Me a Lawyer-Network in China?
You are very likely not to file a lawsuit with a court in Beijing or Shanghai, but in a city with many factories, an airport, or a seaport hundreds of kilometers or thousands of kilometers away. It means that the elite lawyers gathered in Beijing and Shanghai may not be able to help you any better.
How Do the Chinese Courts Interpret Commercial Contracts?
Chinese judges like to see a formal contract with well-written terms signed by both parties. In the absence of a contract, the court may accept purchase orders, emails, and online chatting records as a written informal contract.
What if a Chinese Supplier Does Not Deliver the Products?
You probably want to terminate the contract and get a refund or even compensation.