Debt recovery in China
Before looking a local Chinese lawyer or Agency you should be aware that In China, only licensed law firms and licensed lawyers can help you collect your debts from China. GMG’s strategic partner obtained the license to represent international companies in all courts and offer problem solving service.
Thus, sometimes foreign businessmen ask GMG to assist them in Debt Recovery cases.
Unlike Western Management countries it is not an easy procedure. Usually it took places in legal entity called Joint Venture. Also, we had experience of trouble collecting payments from customer in China and overseas suppliers.
Very often Chinese party doesn’t obey Agreement statements and evolve court procedure. The amount of debts of Chinese partner could be very different – from 10 000 USD to couple of millions USD. Without proper assistance of professional layers the chance of positive recovery of debt is very low.
Usually Chinese companies will attempt to take advantage of the foreign enterprise by avoiding debt payments for as long as possible even if they are able to make the necessary payments. In the legal regulation in China exist statutory limitations on when the creditor can collect the debt and it is two years. After this period the debtor is no longer subject under Chinese jurisdiction to pay the creditor.
How we work?
Phase I
- Negotiate with Company A in a peaceful manner the dispute with your Company and try to solve the dispute between the parties.
- Study if there is any possibility to sue the Company A in the China jurisdiction in the event that not peaceful resolution is reached between the parties.
Phase II(If negotiation fails with the Company A):
GMG shall arrange the Law Suit in the Court of First Instance in Company A, for the purpose of:
1) Analyze the case and prepare the documentation and arrange the Court Trial in China;
2) Start the procedures claiming the sales contract by the Chinese party.
3) Represent your Company in the dispute at the Chinese Tribunals against Company A
4) The mutual objective of the Parties is to properly assist the Client in effectively facilitating a productive and informative legal defense for the dispute with Company A.
With our 7 years experience we had extensive experience of providing different solutions for foreign partner. We will listen carefully to your specific situation and will suggest a proper solution.
