Yes, you can sue a Chinese supplier in Chinese courts.
This post was first published in CJO GLOBAL, which is committed to providing consulting services in China-related cross-border trade risk management and debt collection.
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. (See Do I Have the Legal Right (Standing) To Sue When a China-Related Trade Dispute Arises?)
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. (See Can I Sue the Chinese Supplier Only With Emails Instead of a Written Contract?)
If you file a lawsuit with a Chinese court, you will be able to easily have the judgment in your favor enforced later. (See Why Can You Turn To Chinese Courts for Disputes With Chinese Suppliers?)
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.(See Can Foreign Judgments Be Enforced in China?)
In contrast, you might consider suing the supplier directly in China.
For more information, you can read 8 Tips on How to Sue a Company 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 and debt collection.
Photo by Joshua Fernandez on Unsplash
Contributors: Meng Yu 余萌
