Enforcement of default interest awards from foreign arbitral tribunals in China is possible if the arbitration rules give the tribunal discretion to award default interest, and a recent case demonstrates that Chinese courts will support such claims even in the absence of a specific contractual clause on the payment of default interest.
When a Chinese debtor owes you money denominated in USD, EUR, JPY or other currencies, how should you ask him to pay the default interest?
Distributors’ shops on online sales platforms are important assets for debt repayment.
This is a way to prevent the shareholders who actually control the company no longer from getting the company profits only while avoiding the company’s debts.
Debt collection in China refers to the pursuit of payables from business partners based in China.
If I pay a Chinese supplier from my bank account A, can I ask the Chinese company to pay to my bank account B when it refunds me?
Yes. If you send a demand letter to your Chinese debtor, you can improve the success rate of debt collection, although it is not guaranteed every time.
In China, any institution can engage in debt collection activities without a license from the government. However, collecting the financial debt (mainly consumer debt) shall observe certain rules. There are no special restrictions for collecting commercial debt, i.e., non-financial debt.
One way is to start by suing an individual guarantor (who is normally the de facto controller of the debtor).
Payment from a debtor in China is usually made by telegraphic transfer (T/T).
Your Chinese debtor can no longer pay off its debts to you alone. You shall be paid together with all of its creditors. You also need to declare your creditor rights to its bankruptcy administrator.
Can I sue Chinese companies in France and then enforce a French judgment in China?
If there is a default on the bonds whose debtors or guarantors are based in mainland China, you can initiate an action before a court outside China and enforce the judgment in China.
It is intended to prevent the company’s shareholders from escaping liabilities by hiding under the corporate veil of limited liability.
Tuesday, 27 September 2022, 6:00-7:00 Istanbul Time (GMT+3)/11:00-12:00 Beijing Time (GMT+8)
Alper Kesriklioglu, Founder Partner of Antroya Consulting and Law Office (Turkey), and Chenyang Zhang, Partner of Tian Yuan Law Firm (China), will take participants on a journey to discover the landscape of debt collection in Turkey and China. With interactive discussion, we will explore efficient and practical strategies, methods and tools to collect payments.
Because it can help you accurately identify your debtor.
Getting refund is no different from collecting other debts.
You’d better preserve the debtor’s property through the court to prevent the debtor from evading debt by transferring assets.
Given the large scale of China’s trade, even the chance of getting bad debts is small, the impact on international creditors and amount of liabilities arising therefrom should not be underestimated.
It is not easy to demand payment from the debtor, either to ask the buyer to pay for the goods or to ask the supplier to return the money (in case of a failed transaction).