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Commercial Disputes and Debt Recovery in China

Legal support for international businesses and individuals facing disputes with Chinese companies or counterparties.

Whether the issue involves unpaid invoices, non-delivery, defective goods, breach of contract, or a shareholder disagreement, the first step is to assess the evidence, the available legal routes, and the practical prospects of recovery.

Discuss a China-Related Dispute

When You May Need Help

What Matters in a China-Related Dispute?

How I Can Help

  1. Review the contract, evidence, and chronology.
  2. Identify potential claims, defenses, and procedural routes.
  3. Assist with demand letters and settlement negotiations.
  4. Advise on evidence preservation and potential asset-preservation measures.
  5. Assist with arbitration or court proceedings within the agreed engagement.
  6. Assess post-judgment enforcement options and relevant cross-border issues.

Not sure whether your situation fits? Send a short outline through the enquiry form below. I will confirm whether I can help and what the next step would be.

Discuss a China-Related Dispute

Documents to Prepare

How the Process Works

  1. Initial enquirySend the enquiry form below, or contact me by email or WeChat, with a brief outline of your matter. Please do not send confidential original documents at this stage.
  2. Scope and conflict checkI review the outline, check for conflicts, and confirm whether the matter fits my practice and what it would involve.
  3. Consultation and engagement termsWe discuss the facts, documents, options, likely process and fees. Work begins only after the scope and terms are confirmed in writing.
  4. Action and follow-upI carry out the agreed work and keep you informed of progress, deadlines, and decisions needed from you.

Frequently Asked Questions

Can a foreign company sue a Chinese company?

Yes. Foreign companies have standing in Chinese courts, and jurisdiction usually follows the contract clause or the defendant's domicile. If the contract contains an arbitration clause, the dispute normally goes to arbitration instead. The first step is checking the clause and identifying the correct respondent.

What can I do if a Chinese supplier refuses to refund my deposit?

Start by preserving the full evidence trail and sending a formal written demand. If that fails, the options are usually negotiation through counsel, arbitration, or litigation, depending on the contract. Whether the deposit is recoverable depends on the contract terms and which side is responsible for the failed transaction.

Can I recover money if the seller and the payment recipient are different?

It is more complicated, but not hopeless. Claims may exist against the contracting seller, and in some situations against the recipient. What matters is the paper trail showing why payment was directed to a third party. This mismatch is common in China trade disputes and should be assessed early.

Should I send a demand letter before starting legal proceedings?

Often, yes. A demand letter from a Chinese lawyer sets a deadline, puts the counterparty on formal notice, and sometimes produces payment without proceedings. It also creates a clean record if the case proceeds. It is usually a low-cost first step.

Should I consider litigation or arbitration?

The contract clause may already decide this. Where there is a choice, compare enforceability, cost, duration, confidentiality, and where the assets are. Arbitration is private and awards travel well internationally; litigation in the defendant's local court can be more direct for asset enforcement inside China.

Can a Chinese court preserve a counterparty's assets?

Yes. Property preservation is available in litigation and, through the court, in support of arbitration. Applicants usually must provide security, and urgent applications can be made before filing in defined circumstances. It is a key tool where there is a risk that assets will be moved.

What if the contract is in Chinese?

That is workable. The Chinese text is what a Chinese court or tribunal will rely on, and I review contracts bilingually, so the assessment is based on the operative text rather than a rough translation. Key documents can be translated for your decision-making.

Can a Chinese judgment be enforced against assets outside China?

Sometimes. Enforcement abroad depends on treaties or reciprocity between China and the country where the assets are, and the position has been evolving. If the assets are in China, enforcement is usually more straightforward. This should be mapped before proceedings begin.

Related Guides & Services

Facing a Commercial Dispute in China?

Provide the parties' names, a short timeline, the amount involved, and any important deadline. Please avoid sending highly sensitive documents through an unsecured initial enquiry. I can assess whether the matter fits my practice and explain the potential next steps, subject to review of the facts and evidence. No outcome or recovery can be guaranteed.

Privacy: your enquiry is sent only to Xiao Ma and used solely to assess and respond to your request. Please do not submit confidential or highly sensitive documents through this form; an initial outline is enough.

Prefer to reach out directly? Email maxiao@bjxuguan.com · Phone / WhatsApp +86 189 1130 2068 · WeChat: leomax126

The information on this page is general information about legal services and legal issues in mainland China. It is not legal advice for any specific situation and does not create a lawyer-client relationship. Services are provided only after a conflict check and a written engagement.