What Are the Litigation’s Pros and Cons in China?
Still undecided whether to bring a lawsuit in China?
Still undecided whether to bring a lawsuit in China?
Can I ask a Chinese court to order the other party to pay for my attorney’s fees?
Imagine if you buy goods from a Chinese supplier, but the deal fails and the Chinese supplier should return you the advance payment.
International business partners are getting increasingly accustomed to using WhatsApp or WeChat to reach an agreement, send orders, modify transaction conditions and confirm performance.
A Chinese company with larger registered capital, especially paid-in capital, usually has larger scale and stronger ability to perform contracts. However, its registered capital or paid-in capital isn’t necessarily equal to its actual assets at a certain point of time.
International 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.
Before bringing a lawsuit, you could first consider negotiation, complaint, and debt collection.
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.
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?
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.
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.
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.
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.