How to sue a Chinese company: a step-by-step guide.

Can a foreign company sue a Chinese company in China?

Often, yes. The question is not simply whether the claimant is overseas; it is whether a Chinese court has jurisdiction, the defendant can be identified and the claim can be supported with usable evidence. The official English text of China's Civil Procedure Law states that foreign enterprises and organisations that bring suits or enter an appearance have litigation rights and obligations subject to the law. Read the foreign-related procedure provisions.

For a supplier, manufacturer or trading counterparty with its business and reachable assets in China, a China-side forum may be more practical than first obtaining a foreign judgment and then asking a Chinese court to recognise it. That is a forum and enforcement assessment, not a universal rule.

Step 1 — Identify the right Chinese defendant and forum

Start with the exact legal name, registered address and unified social credit code of the Chinese company. A brand name, sales contact or factory sign may not identify the entity that signed the contract or received the money.

Then review any jurisdiction or arbitration clause. A written forum clause may matter, but its effect depends on the wording, the relationship between the chosen forum and the dispute, and mandatory procedural rules. If the contract is silent or the clause is unusable, territorial jurisdiction may be connected to the defendant, the place of performance or the property involved. The official court text includes foreign-related jurisdiction provisions and should be checked against the current law and facts.

Step 2 — Build the evidence file before filing

Collect the documents in a way that preserves the commercial timeline:

1. Contract, purchase order, quotation, invoices and amendments.
2. Bank records, payment instructions, shipping documents and inspection records.
3. Email, WeChat and other communications showing performance, breach or admissions.
4. The Chinese company's licence information, registered name, chop details and signatory authority.
5. Corporate authorisations, powers of attorney and identity documents for the foreign claimant.

Foreign documents may require notarisation, apostille or another authentication route, depending on the country of origin and the document. Since 7 November 2023, the Apostille Convention has been in force for the People's Republic of China; the HCCH records the change, but the correct document route still needs to be confirmed for the specific filing. HCCH update on China's Apostille Convention status.

Step 3 — Assess asset preservation early

Asset preservation is a court process that may freeze or restrict dealings with reachable assets before or during a case. It can change the commercial incentives of a defendant, but it is not automatic. The applicant may need to identify assets, meet court requirements and provide security or a bond. It also carries risk if used without a proper factual and procedural basis.

Before filing, ask what could realistically be preserved: bank accounts, real estate, equity interests, receivables or other identifiable property. A strong merits claim with no reachable assets may still be difficult to collect, so litigation strategy and enforcement planning should be connected from the beginning.

Step 4 — Plan the timeline and cost categories

There is no universal China lawsuit timeline. Service, evidence disputes, court workload, foreign-related procedure, hearings and appeal rights can all change the schedule. A six-to-twelve-month first-instance range may be useful for internal planning in some commercial matters, but it is not a result or deadline.

Deadlines that should not be ignored

Article 188 of the Civil Code describes a general three-year limitation period for applying to a people's court for protection of civil-law rights, subject to exceptions and different rules that may apply. The English text available from the National People's Congress is a useful starting point, not a substitute for a limitation analysis on the actual claim. National People's Congress Civil Code page.

Preservation applications, contractual notice periods, appeal windows and document validity can create separate time pressure. If money, goods or company assets are at risk, obtain a focused review promptly.

Frequently asked questions

Conclusion

For a foreign business, the most useful pre-filing question is not only “Do we have a claim?” It is “Which Chinese entity, which forum, which evidence and which reachable assets are involved?” A focused early review can make the next decision clearer.

Written for general information by Guangdong Yesi Law Firm. The article does not create an attorney-client relationship or guarantee an outcome. Review the legal disclaimer before acting.