You paid a Chinese supplier, but the supplier has received your money and now refuses to ship the goods. What should you do?

For a foreign buyer, dealing with a Chinese supplier from overseas can be difficult. A Chinese lawyer experienced in international trade disputes can help you assess the situation and take effective legal action in China.

1. Have a Chinese Lawyer Review Your Case

A lawyer can review your sales contract, invoices, payment records, emails, WhatsApp or WeChat messages, and shipping documents to determine whether the supplier has breached the contract and what remedies may be available.

2. Send a Formal Lawyer’s Demand Letter

A Chinese lawyer can send a formal demand letter requiring the supplier to ship the goods or refund your payment within a specified period. A lawyer’s letter can also preserve your legal position and make clear that further legal action may follow.

3. Investigate the Chinese Supplier

Before taking legal action, it is important to verify the supplier’s exact Chinese company name, registration status, legal representative, registered capital, and assets. This information can be critical when deciding whether litigation or arbitration is commercially worthwhile.

4. Pursue Arbitration or Litigation in China

If the supplier refuses to resolve the matter, a Chinese lawyer can assess the dispute-resolution clause and determine whether Chinese court litigation or arbitration is available. Where appropriate, the lawyer can also consider property preservation to prevent the supplier from transferring assets before enforcement.

5. Recover Your Payment and Losses

Depending on the contract and applicable law, you may be able to claim a refund, damages, interest, and other recoverable losses resulting from the supplier’s breach.

Why Choose a Chinese Lawyer?

A lawyer located in China can communicate directly with the supplier, review Chinese-language corporate and contractual documents, conduct local legal procedures, and represent the foreign buyer before Chinese courts or arbitration institutions.

If a Chinese supplier has received your payment but refuses to ship your goods, do not wait indefinitely. The earlier you obtain legal advice, the more options you may have to protect your money and recover your losses.

This article is for general information only and does not constitute legal advice for any particular dispute.