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CTD 101 Series: Can I Sue a Supplier in China?

Sun, 03 Oct 2021
Contributors: Meng Yu 余萌

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Yes, you can sue a Chinese supplier in Chinese courts.

If you purchase some products from a Chinese supplier who then breaches the contract, you can hold the supplier liable for breach of contract, for example, requiring the supplier to continue to fulfill the contract and compensate you for your losses or pay you liquidated damages.

If there is neither arbitration agreement nor an exclusive jurisdiction agreement where a foreign court is chosen, you can file a lawsuit with Chinese courts. Even if there is only a simple order in the email or chatting records, you can still bring a lawsuit before Chinese courts.

If you file a lawsuit with a Chinese court, you will be able to easily have the judgment in your favor enforced later.

Because, in most cases, the properties of Chinese suppliers are located in China, it is much more convenient to enforce Chinese judgments than those of other countries in China.

If you sue a Chinese supplier in your country and win the case at last, the result would be either you can’t execute the property of a Chinese supplier in your country, or you need to spend extra money and time trying to enforce a foreign judgment in China.

In contrast, you might consider suing the supplier directly in China.

 

The Cross-border Trade Dispute 101 Series (‘CTD 101 Series’) provides an introduction to China-related cross-border trade dispute, and covers the knowledge essential to cross-border trade dispute resolution.

 

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Do you need support in Cross-Border Trade Dispute Resolution?

CJO Global's team can provide you with China-based consulting service, including case assessment and management, background check, and debt collection (‘Last Mile’ Service). If you encounter any problems in cross-border trade dispute resolution, or if you wish to share your story, you can contact our Client Manager Susan Li (susan.li@chinajusticeobserver.com).

CJO Global is a product of China Justice Observer.

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If you want to know more about CJO Global cross-border trade dispute resolution service, please click here.

If you wish to read more CJO Global articles on cross-border trade dispute resolution, please click here.

 

Photo by Joshua Fernandez on Unsplash

Contributors: Meng Yu 余萌

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