Introduction
In our practice, one of the most frequent issues raised by foreign clients is very simple: they paid a Chinese supplier, but the goods never arrived.
These cases often start with a normal commercial transaction, but quickly turn into a legal dispute when communication breaks down or the supplier becomes unresponsive.
Typical Real-World Situations
We commonly see situations such as:
- A foreign buyer pays a deposit to a Chinese trading company on Alibaba or via email negotiation
- The supplier confirms production, but delivery never happens
- After payment, the supplier stops responding or gives repeated excuses
- The company later turns out to have limited or no real assets
Legal Reality in China
Under Chinese contract law, failure to deliver goods after payment is generally considered a breach of contract.
However, the key issue is not the legal principle—it is whether recovery is actually possible.
In practice, recovery depends on three main factors:
- Whether the supplier is a real operating company
- Whether assets still exist in China
- How quickly legal action is taken
What Can Be Done
In many cases, we take the following steps:
- File a civil lawsuit in a Chinese court
- Apply for asset preservation to freeze bank accounts
- Trace company registration and underlying shareholders
- Proceed with enforcement after judgment
Important Practical Insight
One important point foreign clients often underestimate is timing.
If the supplier transfers or withdraws funds before legal action is taken, even a successful judgment may be difficult to enforce.
This is why early legal intervention is often more important than the lawsuit itself.
Conclusion
Recovery is not automatic, but in many cases, Chinese courts do provide a structured legal path for foreign buyers to pursue claims.
The outcome depends heavily on preparation and timing.