China commercial dispute response
We help you recover your money from Chinese business partners.
We are a Hungarian law firm with our own team on the ground in China and a proven, staged process for commercial disputes with Chinese companies. You talk to a Hungarian firm, and our team handles the Chinese side efficiently and with costs under control.
Initial case summary
Tell us what happened.
A short summary is enough: what was agreed, what went wrong, the approximate amount and the outcome you need. We reply with what we need for the first review.
You do not need to upload the full file here. After first contact, we will tell you which documents to send at which stage.
China commercial dispute response
You are in the right place if…
Whatever your dispute with your Chinese partner, for example the situations below, we can help: we have handled such cases and know how to resolve them.
You paid a deposit or the full price, but the goods did not arrive
The goods were defective, rejected or materially different from what was agreed
A Chinese customer or partner has left an invoice or repayment obligation unpaid
Direct negotiation has stalled and your messages are being delayed or ignored
How we start
Start with a proportionate, pre-action step.
Once we understand the claim and the available evidence, we prepare a legally grounded demand letter and coordinate cooperating Chinese counsel to send it to the counterparty. They then follow up in Chinese through the channels Chinese businesses use every day, including WeChat and telephone.
This cannot guarantee payment. It can materially change the conversation: the counterparty sees that the claim is now being handled inside China and that continued refusal may lead to Chinese proceedings and enforcement consequences.
Tell us about the matter and what you want to achieve. We review it and send a written offer, either a fixed fee or hourly rates with an agreed cap, so the cost is predictable before work starts. If the scope stays the same, so does the fee. Each later stage, a viability review, negotiation, litigation, arbitration or enforcement, gets its own written offer before it begins.
An initial, honest review of the claim and the documents you already have, including whether pursuing it looks worth the cost
A focused case map: parties, transaction, breach, evidence and any immediate gaps
A legally grounded demand letter prepared from the agreed facts and available documents
Delivery and follow-up by cooperating Chinese counsel, in Chinese, by WeChat and telephone
Negotiation of payment, delivery, replacement, refund or another workable settlement
If pressure does not resolve the matter: a legal and financial viability review covering the counterparty's status and assets, litigation and enforcement history, the limitation period and the dispute-resolution clause in your contract
A staged proposal, with scope and fee agreed before each step, for negotiation, litigation, arbitration or enforcement
Step by step
We go step by step and start each further stage only with your approval.
The goal is the quickest commercially sensible resolution. The process only becomes more intensive when the counterparty’s response and the economics justify it. After the first step, three paths are possible.
They comply
Payment or performance
If the counterparty pays, delivers, replaces the goods or otherwise meets the agreed demand, the matter closes.
They propose terms
Negotiated solution
If they offer a payment plan, replacement, partial refund or another solution, we help evaluate and negotiate it and document the settlement.
They refuse or stay silent
Viability before litigation
Cooperating Chinese counsel can then assess the company, assets, litigation and enforcement history, evidence, legal merits and likely costs before you decide whether to sue.
What happens after you contact us
A staged route from case assessment to enforcement.
Each stage has a defined output and a decision point. You see the scope and cost of the next step before authorising it.
Tell us what happened. We review the claim and what you already have, contract or purchase order, invoices, payment records, delivery or inspection paperwork and key correspondence, and give you a plain view on whether pursuing it looks worthwhile
If you want to proceed, we prepare the demand; cooperating Chinese counsel checks the counterparty's registration and status, then sends it and follows up in Chinese by WeChat and telephone
If the counterparty pays or performs, the matter closes; if it offers another solution, we help negotiate and document it
If there is no resolution, the viability review examines the counterparty's assets, litigation and enforcement history, the evidence, the limitation period and the applicable forum or arbitration clause
You receive the assessment and a stage-by-stage proposal, then decide whether to negotiate further, start litigation or arbitration, or stop
Where a claim succeeds, enforcement, tracing assets and using the court's enforcement powers against the debtor, is a further step with its own scope and fee
We confirm the scope of the first stage, the demand letter and delivery, after reviewing your initial summary. Chinese law sets general time limits for court and arbitration proceedings, but how long a case actually takes depends on the documents, the delivery route, the counterparty's response, the forum, and, if it comes to that, enforcement. We set out the expected timing for each stage before it starts.
Why Cathay
Hungarian and Chinese experts support your recovery.
In a cross-border claim, communication in your own language, legal action in China and a clear commercial decision at each escalation point all matter. One team keeps them together.
A Hungarian contact and a team on the ground
You deal with a Hungarian law firm in your own language. Our Shanghai office and cooperating Chinese lawyers prepare the Chinese-language demand, the follow-up, the assessment and any local proceedings you approve.
A proportionate first step
We try to create a credible route to payment or performance before asking you to fund a longer legal process.
Recoverability matters as much as the judgment
Before litigation, the viability review considers both whether the evidence can win and whether the counterparty appears able to satisfy an award or judgment.
Experience shaped into a process
The workflow is built from real China-related supply, payment and performance disputes, with defined handoffs and decisions that stay with you.
Before you decide
Questions clients ask at this stage.
Can you guarantee that the demand letter will recover the money?
No. A responsible lawyer cannot promise recovery before knowing the facts, the evidence and the counterparty. The first stage is designed to create credible local pressure at a controlled, agreed cost. If it does not resolve the matter, the separate viability review helps you decide whether further investment is justified.
What should we send for the first review?
Start with a short chronology and whatever you have: the contract or purchase order, invoices, payment records, delivery or inspection documents, and the key email, WhatsApp or WeChat correspondence. Do not wait for a perfect file. We identify what is missing and tell you which documents we need at which stage.
Is it too late if we paid months ago?
Not necessarily. Chinese law generally allows three years from when you knew or should have known of the breach to bring a civil claim (Civil Code, Article 188), and the period can be interrupted by a demand or acknowledgment. But delay still weakens practical recovery: records become harder to assemble, and the counterparty's assets or status can change. It is sensible to have the position reviewed promptly rather than to wait.
What if our contract specifies a European court or arbitration?
The clause needs to be reviewed, not assumed to solve the problem. It may determine where the merits are decided, while recognising and enforcing the result against assets in China is a separate question. If the contract provides for arbitration, for example under CIETAC or another institution, the award can generally be enforced in China because China has been a party to the New York Convention since 1987. A European court judgment does not benefit from the same treaty and is harder to enforce against a debtor's China-based assets. Chinese courts also gained wider jurisdiction over foreign-related disputes when the revised Civil Procedure Law took effect in January 2024. The viability review identifies the realistic forum and enforcement path for your actual clause and the counterparty's assets.
What does the legal and financial viability review examine, and will we know the cost before deciding?
The scope is set for the case, but it typically covers the counterparty's legal status and any available indicators of assets or restrictions, its litigation and enforcement history, your evidence and the burden of proof, the limitation period, the applicable forum or arbitration clause, and the recoverability of the claim. You receive a concrete proposal for the recommended route and its stages, including legal fees and the identifiable court, arbitration, preservation, certification, translation and enforcement cost categories, before any formal step starts. Nothing formal begins merely because the review recommends it.
Why might a demand from cooperating Chinese lawyers be taken more seriously than a reminder from Europe?
A Chinese-language letter followed by local contact by WeChat and telephone shows that the creditor has moved beyond remote reminders and can obtain advice and representation inside China. It also makes the possible next steps more concrete. That can improve engagement, but the effect depends on the counterparty and the merits of the claim, so it is never presented as a certainty.
China commercial dispute response
Tell us what happened. We will identify the next sensible move.
Start with a short case summary. We identify the immediate gaps in the file and set out what a defined first step would involve, and what it costs.