Introduction
In cross-border disputes, many foreign clients focus only on filing a lawsuit. However, in practice, the most critical step is often taken before or during litigation—freezing the defendant’s assets.
Without asset preservation, even a successful judgment may have limited practical value.
What Asset Freezing Means in China
Asset freezing (also called “property preservation”) is a court order that restricts a defendant from transferring or disposing of assets during legal proceedings.
These assets may include:
- Bank accounts
- Company equity
- Real estate or vehicles
When It Is Typically Used
We usually apply for asset freezing in cases involving:
- Non-delivery after payment
- Suspected fraud by suppliers
- Large unpaid commercial debts
- Risk of asset transfer or disappearance
Practical Considerations
In practice, Chinese courts require applicants to provide:
- Basic evidence of the dispute
- A clear claim amount
- Financial guarantee or bond in some cases
Timing is critical. Applications are often made immediately after filing or even before full litigation is completed.
Why It Matters
In many cases we have handled, suppliers transfer funds within days of disputes arising.
Once assets are moved out of reach, enforcement becomes significantly more difficult.
Conclusion
Asset freezing is not a secondary procedure—it is often the key factor that determines whether recovery is possible.