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.
In addition, you must follow specific steps. Otherwise, your notice to terminate the contract will likely be considered a breach of contract by the judge in the later lawsuit in China.
Therefore, you need to treat rescission with caution.
1. How do Chinese judges treat contract rescission?
You must be aware that Chinese judges are unwilling to uphold any rescission claim.
On the one hand, China traditionally prioritizes harmony and, on the other hand, promoting transactions is an important judicial value among Chinese courts.
Therefore, in order to promote transactions, most judges are inclined to encourage the parties to continue the contract, rather than to terminate the transaction.
This leads to de facto extremely strict requirements to rescission claims in judicial practice.
Taking this into account, you need to be well prepared for the rescission of a contract.
2. Under what circumstances can you terminate a contract?
(1) Terminate a contract as agreed in the contract
Where the contractual conditions for rescission, if any, are satisfied, you can terminate the contract.
For example, you may agree in the contract that you can terminate the contract upon breach of the contract by the other party.
However, even if the other party breaches the contract, your rescission claim will not be necessarily upheld by a Chinese judge. Where his breach is not serious enough to render the purpose of the contract unachievable, your rescission claim will not be upheld by a Chinese court.
In order to avoid such a judgment, we suggest that you briefly describe the transaction background in the contract and explain how the defaulting party’s breach would affect you and why it would render the purpose of the contract unachievable.
By entering into such a contract, the other party acknowledges that certain breach of the contract will lead to the frustration of the contract purpose.
This will give you a good reason to prove to the judge in court that the contract should be terminated.
(2) Terminate a contract under the Chinese law
If you settle your dispute in China and there is no other agreed applicable law, the Chinese law is most likely to be applied.
In accordance with article 563 of the Civil Code, the parties may terminate the contract under any of the following circumstances:
i. the purpose of a contract is not able to be achieved due to force majeure;
ii. prior to the expiration of the period of performance, one of the parties explicitly expresses or indicates by his act that he will not perform the principal obligation;
iii. one of the parties delays his performance of the principal obligation and still fails to perform it within a reasonable period of time after being demanded;
iv. one of the parties delays his performance of the obligation or has otherwise acted in breach of the contract, thus makes it impossible for the purpose of the contract to be achieved; or
v. any other circumstance as provided by law.
In such circumstances, you can consider terminating the contract.
3. How do you terminate a contract?
If the contract agrees on steps of rescission, you need to follow the agreed steps to terminate it. If not, you need to complete the rescission in accordance with Chinese law, which stipulates the following steps.
First, you must collect evidence of the other party’s breach of the contract.
You need to lead the other party to make an express repudiation, including statements saying “I will not deliver” or “You must pay more or I will not deliver”.
Where the other party simply delays the performance of his obligation, you need to first notify the other party to deliver the goods as soon as possible and give the other party a reasonable grace period. And you are entitled to terminate the contract upon the expiry of the grace period if no reshipment is made during the period.
Where the quality of the product delivered by the other party is substandard, you need to adopt the following steps.
The first step is to inform the other party of substandard product quality and explain to him that the goods are completely unsaleable or unusable.
The second step is to give the other party a grace period to make another shipment and take back the original goods.
And the last step is to terminate the contract upon the expiry of the grace period if no reshipment is made during the period.
Then, you can notify the other party of your rescission of the contract.
The contract shall be terminated as of the date of the other party’s receipt of your rescission notice. Therefore, you need to prove that the other party has received the notice.
In addition, you can also file a lawsuit with a court or apply to an arbitral institution for arbitration and ask them to confirm the rescission of the contract.
It should be noted that you must exercise your right to terminate a contract within a certain period of time by giving notice, filing a lawsuit with a court, or other reasonable means. If you fail to exercise such right in due time, you are no longer entitled to terminate the contract.
Well, what is the period length?
You can agree on that period in the contract. If there is no such agreement in the contract, the Chinese law will fill the gap by prescribing a period of one year from the date you know or should have known the occurrence of the rescission cause.
4. What is the effect of terminating a contract?
You can agree on the effect of the contract rescission. If there is no such agreement, Chinese law will also fill in the gap by prescribing the following effects.
(1) Termination of performance
In accordance with Article 566 of the Civil Code, after a contract is terminated, where the obligations have not yet been performed, the performance shall cease。
In other words, you don’t have to pay off the remaining amount, and the other party doesn’t have to deliver the remaining goods.
(2) Restoration to the original status
In accordance with Article 566 of the Civil Code, where the obligations have already been performed, the parties may, taking into account the performance status and the nature of the contract, request restoration to the original status or other remedial measures taken, and have the right to request for compensation for losses.
Restoration to the original status often means that the other party is obliged to return what you have paid and is entitled to get back what he has delivered.
(3) Compensation for loss
In accordance with Article 566 of the Civil Code, where a contract is terminated due to a default, the party with the right to terminate the contract may request the breaching party to bear default liability, unless otherwise agreed by the parties.
Therefore, after the contract is terminated, you can still claim liquidated damages from the other party. If there is no agreement on liquidated damages, you can ask the other party for compensation for the loss.
Do you need support in cross-border trade and debt collection? CJO Global's team can provide you with China-related cross-border trade risk management and debt collection services, including: (1) verification and due diligence; (2) trade contracts drafting; and (3) dispute resolution and debt collection. If you need our services, or if you wish to share your story, you can contact our Client Manager Susan Li (email@example.com). If you want to know more about CJO Global, please click here. If you want to know more about CJO Global services, please click here. If you wish to read more CJO Global posts, please click here.
- Case Filing, Service of Process and Withdrawal of Application – Breakthrough for Collecting Judgments in China Series (X)China published a landmark judicial policy on the enforcement of foreign judgments in 2022. This post addresses the rules on case filing, service of process and withdrawal of application.
- What Are the Litigation’s Pros and Cons in China?Still undecided whether to bring a lawsuit in China?
- Can Applicant Seek Interim Measures from Chinese Courts? – Breakthrough for Collecting Judgments in China Series (IX)China published a landmark judicial policy on the enforcement of foreign judgments in 2022. This post addresses the rules on whether and how applicants may seek interim measures (conservatory measures) in cases of the recognition and enforcement of foreign judgments in China.
- How to Successfully Collect Debts in ChinaImagine if you buy goods from a Chinese supplier, but the deal fails and the Chinese supplier should return you the advance payment.
- China Company Verification and Due Diligence: Business ScopeYou may inquire about the business scope of Chinese companies registered with China’s company registration authority, and then assess whether the Chinese company transacts with you beyond its business scope.
- Where to File Application for Enforcing Foreign Judgments in China – Breakthrough for Collecting Judgments in China Series (VIII)China published a landmark judicial policy on the enforcement of foreign judgments in 2022. This post addresses the supplementary rules on jurisdiction in cases of the recognition and enforcement of foreign judgments in China.
- Conditions for Enforcement of Foreign Judgments in China – Breakthrough for Collecting Judgments in China Series (VII)China published a landmark judicial policy on the enforcement of foreign judgments in 2022. This post addresses the conditions for recognition and enforcement of foreign judgments in China.
- How Debt Collection Works in China?Compared with debtors in your own country, when debtors in China do not pay, you will encounter many different challenges and consequences.
- China Company Verification and Due Diligence: Legal Representative￼If you contract with a Chinese company, you’d better have its legal representative sign the contract. This is because he/she holds the core power of the company and will also be responsible for the company.
- How to Write an Application for Enforcing Foreign Judgment in China – Breakthrough for Collecting Judgments in China Series (VI)How to Write an Application for Enforcing Foreign Judgment in China – Breakthrough for Collecting Judgments in China Series (VI) Key takeaways: The 2021 Conference Summary outlines what to include …
- [WEBINAR] German-China Debt Collection: Enforcing Foreign Judgments & Arbitral Awards￼Friday, 27 May 2022, 09:00-11:00 Berlin Time (GMT+2) /15:00-17:00 Beijing Time (GMT+8). Four industry leaders from China and Germany, Chenyang Zhang, Partner of Tian Yuan Law Firm (China), Hualei Ding, Partner of Dentons Beijing (China), Timo Schneiders, Managing Partner of YK Law Germany, Stephan Ebner, German-US-Attorney-at-Law at DRES. SCHACHT & KOLLEGEN (Germany), will discuss whether and how foreign judgments and awards can be enforced in the two jurisdictions, a rising sector in international debt collection.
- How to Check Chinese Company’s Registration Information?You can find a Chinese company’s registration information on China’s national enterprise credit information publicity system via the link below.
- What Documents to Prepare for Enforcing Foreign Judgment in China – Breakthrough for Collecting Judgments in China Series (V)China published a landmark judicial policy on the enforcement of foreign judgments in 2022. This post provides the documents checklist one needs to prepare for enforcing a foreign judgment in China.
- Tips for Debt Collection in ChinaInternational debt collection can be a complex, drawn-out process, particularly when you don’t understand Chinese, can’t come to China, and know nothing about China’s legal and judicial system.
- How Chinese Courts Identify Foreign Judgments as Final and Conclusive? – Breakthrough for Collecting Judgments in China Series (IV)China published a landmark judicial policy on the enforcement of foreign judgments in 2022. This post addresses the criteria for Chinese courts in reviewing whether a foreign judgment is final and binding or not.
- How to Manage Debt Collection in China￼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.
- China Clears Final Hurdle for Recognition and Enforcement of Foreign Judgments in 2022￼The 2021 Conference Summary enables an ever greater number of foreign judgments to be enforced in China, by making substantial improvements from both the “threshold” and “criteria”.
- If the Chinese Supplier Hasn’t Shipped the Goods, What Should I Do? You should terminate the contract before considering whether to claim compensation from him.
- China Company Verification and Due Diligence: Legal Chinese Name of CompanyYou 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.
- How Does A Chinese Court Determine Your Right to Claim If There Is Only A Simple Contract￼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.
- Can you sue a manufacturer in China?￼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.
- How Chinese Courts Review Applications for Enforcement of Foreign Judgments – Breakthrough for Collecting Judgments in China Series (II)China published a landmark judicial policy on enforcement of foreign judgments in 2022. This post addresses the criteria for Chinese courts to review applications for recognition and enforcement of foreign judgments.
- Can I Ignore the Transaction If the Goods of the Chinese Supplier Are Poor-quality?￼You’d better not turn your back on your deals with Chinese suppliers. You shall terminate your contract in accordance with reasonable procedures.
- What If the Chinese Supplier Asks You to Pay to Different Bank Accounts?When you make payments to Chinese suppliers, they may ask you to pay to several different bank accounts that may not belong to themselves.
- How Do You Validate a Chinese Company?￼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.
- China Issues Landmark Judicial Policy on Enforcement of Foreign Judgments – Breakthrough for Collecting Judgments in China Series (I)China’s Supreme People’s Court elaborated on how Chinese courts would handle cases involving the recognition and enforcement of foreign judgments in a conference summary, embarking on a new era for judgment collection in China.
- How Can A Chinese Court Determine the Transaction Content If there Is Only A Simple Order?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.
- Verify a Chinese Company to Avoid Dealing with Dishonest Judgment Debtors￼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.
- Are NNN Agreement Enforceable in China?￼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.
- Do I Need to Get the Chinese Company to Stamp the Contract?Absolutely Yes. Anything stamped with the official company seal is considered to be on behalf of the company’s will in China.
- How to Check Chinese Company Registration CertificateThe Certificate of Registration for Chinese companies is called Business License (营业执照, Ying Ye Zhi Zhao). The business license contains basic information that a Chinese company should disclose to the public.
- How Do I Take Legal Action Against a Chinese Company?You need to determine where you are going to sue, and what law is applicable to your case. If you are planning to file a lawsuit in China, then we have prepared 8 tips for you in this article to help you evaluate your potential legal action.
- Sue a Company in China: What Will Be Considered as Contracts by Chinese JudgesYou have to prove the specific transaction agreed in the contract during the lawsuit in China.
- How to Publish Public Notices in Newspapers 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.
- Sue a Company in China: How Do Chinese Judges Treat Evidence?What evidence should you prepare? Documentary evidence (physical documents), electronic documents, and recordings are all necessary in this regard.
- Debt Collections in China: Enforce Your US Judgment in China and You Will Have a Surprise!Good news for the creditors with a US judgment! Now, American civil/commercial judgments are highly likely to be recognized and enforced in China.
- What Does It Mean if My Chinese Supplier Is a Dishonest Judgment Debtor?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.
- How Do I Get a Refund of My Deposit or Prepayment From a Chinese Company?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.
- Debt Collections in China: Why You Need to Know Enforcement Mechanism in Chinese Courts?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.
- Who Can Sign On Behalf of the Chinese Company?The legal representative of the Chinese company, whose name is on its business license, can sign the contract on behalf of the company.
- How Do I Verify a Chinese Company? – Verification for FreeOnly three steps to follow. You need the business license and official seal of this Chinese company and check its current status on the Chinese government website.
- How to Sue a Supplier in China: Five Things You Have to KnowThere 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.
- How Do I Check If a Company Is from China? – Verification for FreeYou have three ways to investigate Chinese companies: legitimacy verification, due diligence, and on-site investigation.
- Court Costs VS Arbitration Costs in ChinaIn 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.
- How to Identify a Fake Company Seal?If a Chinese company affixed a fake official company seal when signing a contract with you, probably you are in a scam.
- How Do I Get My Money Back From a Chinese Supplier? – Debt Collection in ChinaIf 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.
- Arbitration or Litigation in China: Pros & ConsIf 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.
- How Do I Know if a Company Is Legit in China? – Verification for FreeYou need to get a photocopy or a scanned copy of its business license and then check the company’s information in China’s National Enterprise Credit Information Publicity System.
- How Should I Sign a Contract With a Chinese Supplier?The most important thing is to get the Chinese company to stamp the contract. In addition, it is better to have the contract also signed by the legal representative whose name is on the company’s business license.
- Sue a Company in China: What Evidence Strategy Should You Adopt in a Chinese Court?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.
- 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.
- 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 ConsWhen 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.
- 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/RegionCan 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/RegionCan 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 ScamsIf 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 LitigationChinese 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.
- Sue a Company in China: Which Chinese Court Should I File My Case With?It is very likely that you are not going to file a lawsuit with a court in Beijing or Shanghai, but in a small or medium-sized Chinese city unfamiliar to you.
- Execute a Contract With a Chinese Company: Which Language Is Better?You will need a bilingual contract, preferably with the same content in both languages.
- Execute a Contract with a Chinese Company: How to Make it Legally Effective in ChinaYou shall have the Chinese company stamp on the contract and have its legal representative sign hereon.
- Sue a Company in China: You May Consider Arbitration to Claim Against Chinese SuppliersAs we said before, you can turn to Chinese courts for disputes with Chinese suppliers. In fact, if you need to settle disputes in China, China’s arbitration is also a good option, even better than litigation.
- Sue a Company in China: How Much Does It Cost?The costs you need to pay mainly include three items: Chinese court costs, Chinese attorney’s fees and the cost of notarization and authentication of some documents in your country.
- Why Can You Turn To Chinese Courts for Disputes With Chinese Suppliers?It costs less to sue in Chinese courts. Moreover, Chinese courts are trustworthy for enforcement of commercial contracts.
- Time and Expenses – Recognition and Enforcement of Foreign Arbitral Awards in ChinaFor the recognition or enforcement of foreign arbitral awards in China, the average length of proceedings is 596 days, the court costs are no more than 1.35% of the amount in controversy or 500 CNY, and the attorney’s fees are, on average, 7.6% of the amount in controversy.
- Time and Expenses – Recognition and Enforcement of Foreign Judgments in ChinaFor the recognition or enforcement of foreign judgments in China, the average length of proceedings is 584 days, the court costs are no more than 1.35% of the amount in controversy or 500 CNY, and the attorney’s fees are, on average, 7.6% of the amount in controversy.
- Can Foreign Judgments Be Enforced in China?Some countries’ judgments can be enforced in China, while others cannot.
- 4 Things You Have to Know on How to File a Dispute on AlibabaAlibaba provides Online Dispute Resolution (ODR) through its Complaint Center. It has built a complex dispute resolution. If you want to resolve disputes through Alibaba, you need to know what role Alibaba will play and what position it will take.
- How Does Alibaba Dispute Work: How to Preserve Evidence During CorrespondencesBe sure to specify the conditions for terminating the contract and refunding the advance payment in the contract.
- How can I avoid being scammed on Alibaba: Take the seller’s refusal to shipment as an exampleBe sure to specify the conditions for terminating the contract and refunding the advance payment in the contract.
- How Can I Avoid Being Scammed on Alibaba: Take Product Nonconformity as an ExamplePlease don’t just rely on the introduction of the product page and the presumptive consensus. Be sure to specify the details of the product in the contract and order.
- How Does Alibaba Dispute Work: Alibaba’s Role and Its ImpartialityIf you want to resolve disputes through Alibaba, you need to know what role Alibaba will play and what position it will take. Alibaba provides dispute resolution services for both buyers and sellers. In this dispute resolution system, Alibaba plays two roles in fact: service provider and judge.
- How Does Alibaba Dispute Work: System of RulesAlibaba has built a complex dispute resolution system. If you want to resolve disputes through Alibaba, you need to understand these rules in the system.
- How Does Alibaba Dispute Work: FrameworkAlibaba provides Online Dispute Resolution (ODR) through its Complaint Center. If you want to resolve disputes through Alibaba, you may encounter the following four stages: online mediation, making decisions, enforcing decisions, and raising objections to decisions.
- 8 Tips on How to Sue a Company in ChinaYou can sue a company in a Chinese court. Even if you are not in China, you can still do so with the help of Chinese lawyers. To get prepared, you need to know, to start with, whom you can sue and then identify its legal name in Chinese, as well as the address thereof.
- Sue a Company in China: What Documents Do I Need to Prepare to File a Lawsuit in China?Apart from pleadings and evidence, foreign companies in Chinese courts need to complete a series of formalities, which can sometimes be somewhat cumbersome. Therefore, it is necessary to spare sufficient time and costs to get ready.
- How Much Can I Claim When a China-Related Trade Dispute Arises?You are entitled to claim compensation for loss and the agreed liquidated damages, and may under some circumstances receive a punitive damages award.
- Do I Have the Legal Right (Standing) To Sue When a China-Related Trade Dispute Arises?As long as you are ‘directly affected’ pursuant to Chinese law, you may file a lawsuit with the court. First, you must be directly affected by the defendant. Second, you must be a natural person or a legal entity.
- Where Should I Sue When a China-Related Trade Dispute Arises?You need to identify the address of the person or business you want to sue when preparing and filing a complaint before Chinese courts.
- Whom Should I Sue When a China-Related Trade Dispute Arises?You need to know whom you can sue and then identify its legal name in Chinese.
- Arbitration vs. Litigation: Which Is Better in Resolving Disputes With Business Partners in ChinaThe most important difference between litigation and arbitration in China is that judges and arbitrators have different ways of thinking.
- If I Am Not in China, Can I Still File a Lawsuit With Chinese Courts?YES, but you need to hire a Chinese lawyer to file a lawsuit with Chinese courts on your behalf.
- Can I File a Lawsuit With Chinese Courts?Certainly YES. As long as the Chinese court has jurisdiction over the case in question, foreigners or foreign enterprises, like any other Chinese litigant, can file a lawsuit with Chinese courts.
- Can I Sue a Supplier in China?Yes, you can sue a Chinese supplier in Chinese courts.