Dispute with the Chinese side:
first assets, then forum

01

Dispute strategy is laid down before the first payment

The forum is chosen not by prestige, but by the location of the assets, the availability of interim measures, the admissibility of the dispute for arbitration, the language of evidence, the cost and route of execution. Before the contract, the legal Chinese name of the counterparty, Unified Social Credit Code, address, legal representative, bank account, assets, group and role of the guarantor are checked.

Claim

What exactly can you demand: money, execution, termination, IP or security?

Respondent

Correct legal entity, its branches, shareholders and guarantor

Forum

Competent Chinese court or valid arbitration

Assets

Accounts, real estate, shares, goods, receivables and IP

Leverage

Preservation, guarantee, retention, documentary control and reputational risk

02

The jurisdiction of the Chinese court is checked by the connection of the dispute and the mandatory rules

For the mainland court, the type of dispute, the place of the defendant, the conclusion or execution of the contract, the location of the property and the agreed forum clause are important. Certain categories fall within the exclusive competence of Chinese courts. Even when choosing a foreign law, the process in China follows Chinese procedural rules, and the content of the foreign law must be established in an acceptable manner.

03

The deadline for the claim and urgent measures are considered separately

For many civil claims, the general limitation period is three years from the moment the person knew or should have known about the violation and the obligated person, but special periods, beginning, suspension and interruption require separate verification. You cannot wait for the end of negotiations without a written analysis of the deadline.

Limitation

Material deadline for the requirement itself

Notice

Contractual notice period for defect, claim or termination

Appeal

Short procedural period after the decision

Preservation

Urgent submission before money, goods or evidence disappears

Enforcement

Separate deadline for appealing a decision that has entered into force

04

Correspondence only helps when the author, date and context are confirmed

The Chinese process does not imply broad common-law discovery. Each party builds an evidence file in advance: agreement and chop, orders, invoices, bank documents, WeChat and email, delivery records, inspections, notices, minutes and damage calculation. Electronic data is stored with metadata and a clear chain of receipt.

Identity

Chinese company name, signatory, chop and authority

Contract

All applications, bilingual versions, amendments and hierarchy

Performance

Delivery, acceptance, defects, payment and contemporaneous records

Digital

Original device, account, export, timestamps and integrity

Foreign evidence

Apostille/other formality, certified translation and requirements of a specific court

05

The arbitration clause must clearly create jurisdiction

The phrase “disputes are resolved by arbitration in China” leaves too many questions. The clause names the institution, seat/place, applicable rules, language, number of arbitrators, method of appointment and applicable substantive law. The Scope must cover existence, validity, breach, termination and non-contractual claims.

06

Institution, seat, hearing venue and governing law are different elements

The institution administers the case, the seat links the arbitration to procedural law and support courts, the hearing venue is the physical or online venue, and the governing law governs the substantive dispute. They can be combined, but each decision must be conscious.

Mainland seat

Chinese Arbitration Law and support for people’s courts

Hong Kong seat

Separate jurisdiction and special arrangements with the mainland

Foreign seat

Performance in China is planned through the New York Convention or other applicable regime

Language

Contract, witnesses, experts, translation and cost

Tribunal

One or three arbitrators with the required industry and language competence

07

Collateral works if a specific asset is known

The purpose may be to freeze a bank account, prohibit the disposal of property, or preserve goods or evidence. For the Chinese court, data on the defendant and the asset, urgency, connection with the claim and security are being prepared. In arbitration, the route to a state court depends on the seat, institution and applicable arrangement.

1. 01
   Trace

   An account, property, share, inventory or receivable is identified in advance.

2. 02
   File

   Claim, jurisdiction, evidence and preservation application are consistent.

3. 03
   Security

   Cash, guarantee or litigation preservation insurance are prepared without delay.

4. 04
   Follow-through

   The deadlines for initiating the main case and replacing the measure with execution are observed.

08

Expert and damage calculation appear before hearing

The procedural calendar connects jurisdiction, pleadings, document production according to the rules of the forum, witnesses, examination, hearing and post-hearing submissions. A technical, construction, valuation or accounting expert must receive verifiable source data and answer a legally significant question.

09

The decision is evaluated on the possibility of turning it into money

After the court decision or Chinese arbitral award comes into force, the creditor files for enforcement with the competent people’s court. The practical package includes exact details of the debtor, assets, amount with interest, transfers and status of the decision. Asset monitoring continues until complete execution.

Bank accounts

Freezing and write-off within the enforcement procedure

Equity

Company shares and associated corporate rights

Real estate

Arrest, assessment and sale of a registered object

Receivables

Payments by third parties in favor of the debtor

Conduct

Restrictive and credit measures for evasion in cases provided for by law

10

For foreign awards, China has a negotiated route

China applies the New York Convention to commercial awards made in the territory of another member state, with stated reservations. The court does not review the dispute on its merits, but checks the established grounds for recognition and refusal: arbitration agreement, notice, scope, composition/procedure, binding status, arbitrability and public policy.

11

A foreign judgment moves more complicated than an arbitral award

Recognition in Mainland China depends on the applicable international or bilateral treaty or reciprocity, as well as jurisdiction, due notice, finality, absence of a conflicting decision and public policy. Hong Kong has a separate reciprocal arrangement for a significant portion of civil and commercial decisions.

12

Dispute readiness checklist

1. 01

   Check Chinese legal entity, guarantor and location of assets.

2. 02

   Agree on the law, forum, seat, institution, rules, language and scope of the clause.

3. 03

   Create an evidence protocol for contracts, WeChat, inspections, notices and payments.

4. 04

   Maintain a limitation calendar and contractual terms of claims.

5. 05

   Prepare translations, foreign-document formalities and an expert model in advance.

6. 06

   Determine asset and security for urgent preservation application.

7. 07

   Build a settlement only with support and a clear enforcement trigger.