Dispute Resolution
Partner-led recovery of debts from Chinese companies — from lawyer's demand letters and asset preservation to trial and enforcement — handled through our Shanghai and London offices.
When a Chinese supplier stops delivering, an invoice goes unpaid or a deposit disappears, the practical question is rarely whether Chinese law provides a remedy — it usually does — but whether the debtor still has assets worth pursuing. We act for UK and international businesses recovering debts from Chinese companies, combining early asset checks with lawyer's demand letters, court proceedings and enforcement, so costs are only incurred where there is a realistic prospect of recovery.
The general limitation period under the PRC Civil Code, in force since 1 January 2021, is three years from the date you knew or ought to have known that your rights were infringed and who the obligor was (article 188), so delay carries real risk. Foreign claimants must also satisfy formal evidence rules: since China's accession to the Apostille Convention took effect on 7 November 2023, powers of attorney and corporate subject qualification documents from member states are notarised and apostilled rather than consular-legalised.
Chinese litigation is document-led: cases are largely decided on the written evidence filed before trial, and we prepare accordingly. Pre-suit or in-suit property preservation can freeze a debtor's bank accounts and assets; court-annexed mediation often produces an enforceable settlement; and after judgment the dishonest judgment debtor list and consumption restriction orders apply real pressure. Where a China-related dispute is litigated in England instead, we also act as Chinese law expert witnesses.
Before costs are incurred, we review the contract and correspondence, check the debtor's corporate registration status and publicly available asset and credit records, and advise whether there is a realistic prospect of recovery — and by which route.
A formal demand letter from a PRC law firm signals that proceedings are a genuine prospect and frequently reopens negotiation. A properly served written demand can also interrupt the three-year limitation period under the Civil Code.
We apply for pre-suit or in-suit property preservation to freeze bank accounts, equity and real property, arranging the security the court requires. Pre-suit preservation must be followed by proceedings within thirty days.
Partner-led conduct of claims for unpaid invoices, non-delivery, quality disputes and deposit fraud, including the foreign-related procedure under the Civil Procedure Law provisions in force since 1 January 2024 and the evidence formalities foreign parties must meet.
Chinese courts actively encourage mediation, and a court-confirmed mediation statement is enforceable in the same way as a judgment. Where the numbers make commercial sense, we negotiate settlement from a position fully prepared for trial.
After judgment, we apply for enforcement, trace assets and use the courts' pressure tools — the dishonest judgment debtor list and consumption restriction orders — which restrict a debtor's and its legal representative's travel, borrowing and spending.
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Send us the contract, invoices and key correspondence. We reply within one business day with a preliminary view on merits, limitation and the practical prospects of recovery.
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We check the debtor's status and visible assets, agree strategy and fees with you, and — where appropriate — issue a lawyer's demand letter before proceedings.
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We prepare the notarised and apostilled power of attorney and subject qualification documents, apply for property preservation where the assets justify it, then issue and conduct proceedings, including court-annexed mediation if settlement serves your interests.
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After judgment or a mediated settlement, we apply for enforcement, pursue the debtor through asset tracing and credit-restriction measures, and arrange remittance of recovered funds.
Yes — a foreign business can sue a Chinese company in the Chinese courts without travelling to China, acting through PRC lawyers under a notarised and apostilled power of attorney. Since 7 November 2023, powers of attorney and corporate subject qualification documents from Apostille Convention member states no longer require consular legalisation. The amended Civil Procedure Law's foreign-related provisions, in force since 1 January 2024, have also widened Chinese courts' jurisdiction over foreign-related disputes.
Three years, as a general rule, under article 188 of the PRC Civil Code, running from the date you knew or ought to have known that your rights were infringed and who the obligor is. A written demand for payment can interrupt the period and restart it. Because the starting point and any interruptions turn on the facts, limitation should be assessed case by case — and early.
For foreign-related cases there is no fixed statutory deadline for a first-instance judgment: the six-month trial limit that applies to domestic cases does not apply where a foreign party is involved, and first instance commonly takes longer. In practice the timetable is driven by service of process, evidence preparation, any preservation applications and the court's list, so a realistic estimate can only be given case by case after reviewing the papers.
Start with an asset check on the supplier and a lawyer's demand letter from a PRC firm; if neither payment nor performance follows, court proceedings with property preservation are the usual next step. Preserve your evidence now — the contract, payment records and all correspondence — and act within the three-year limitation period. Whether litigation is worthwhile depends on the supplier's assets, so we assess that before costs are incurred.
Yes — Chinese courts can freeze a defendant's bank accounts, equity and real property before proceedings are issued (pre-suit preservation) or while they are pending (in-suit preservation). The applicant normally provides security, often through an insurance guarantee, and pre-suit preservation requires proceedings to be filed within thirty days. A well-timed freezing order is frequently what brings a debtor back to the negotiating table.
Not automatically — there is no bilateral treaty between the UK and China on the recognition of judgments, so an English judgment can only be enforced in China on the basis of reciprocity, which Chinese courts now assess under the criteria set out in the Supreme People's Court's 2021 conference minutes on foreign-related commercial and maritime trials. Foreign arbitral awards are generally more predictable, as China acceded to the New York Convention in 1987 subject to reciprocity and commercial reservations. Prospects need case-by-case assessment.
Describe the background and what you want to achieve. We will assess the position under Chinese law and reply within one business day.
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