China Law & Practice

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China question: How do I initiate litigation for a breach of contract?

Two dispute resolution specialists offer their insights on how to handle bringing a Chinese manufacturer to court and how to avoid a similar situation in the future.

Issue: December 2011/January 2012

Keywords (click to search): manufacturing dispute contract breach O'Melveny Long An

I have had a terrible experience dealing with a Chinese manufacturing supplier. Even though we had signed a contract stipulating all the details, the products I ordered were very late and of a substandard quality to the samples I had confirmed. This isn’t even my main issue – I only received 70% of the products I had ordered and paid for. The company is refusing to produce the remaining quantity because it claims the materials cost had increased, so my payment only covered 70% of the initial order number. I want to initiate court action against this Chinese company, but have heard that the PRC courts are biased against foreign parties. How do I bring this unscrupulous supplier to court, receive a fair hearing and avoid a similar situation in the future? The domestic perspectiveFirst of all, be calm and do not assume that the Chinese courts will be biased against foreigners....

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