A plain-English guide | Reams Law | November 2026

Your company wired a deposit to a supplier in China. The goods arrived late, defective, or not at all — or the supplier stopped answering once it had the money. Now you want to know whether a U.S. business has any real remedy against a Chinese company.

It does, but the path is different from an ordinary domestic contract case, and the best protection is built into the contract before the first payment. Here is what to know about a contract dispute with a Chinese supplier.

Problem one: serving a lawsuit takes months

China is a party to the Hague Service Convention, but it has objected to service by mail. A U.S. lawsuit generally must be served through China’s designated Central Authority (the Ministry of Justice), with the documents translated into Chinese. That process commonly takes many months and sometimes longer. Emailing the complaint or sending it by courier does not count unless a U.S. court specifically authorizes an alternative.

Problem two: a U.S. court judgment may be hard to collect in China

There is no treaty between the United States and China for the mutual enforcement of court judgments. Chinese courts have recognized a small number of U.S. judgments on the basis of reciprocity, and the trend is improving, but it remains uncertain and slow. A U.S. judgment is most useful when the Chinese company has assets, receivables, or affiliates in the United States or another country that readily enforces U.S. judgments.

The better tool: arbitration

China, like the United States, is a party to the New York Convention on arbitration awards. An arbitration award is generally far easier to enforce in China than a foreign court judgment. For that reason, most well-drafted China supply contracts call for arbitration — often before CIETAC in China, or in Hong Kong or Singapore under HKIAC, SIAC, or ICC rules. Which seat is best depends on the deal size, where the assets are, and whether you may need emergency relief from a court.

Contract terms that protect you

• The supplier’s legal Chinese name. A Chinese company’s only legal name is its registered Chinese-character name. The English name on the invoice may have no legal standing. Get the business license and match the name exactly.
• The company chop. Contracts should bear the company’s official seal, applied by someone with authority.
• The right party. Many “suppliers” are trading companies, not factories. Know who you are contracting with and who holds the assets.
• A clear dispute clause naming the arbitration institution, seat, language, and governing law. Vague or split clauses are a common reason enforcement fails.
• A bilingual contract stating which language controls.
• Specifications, inspection rights, and payment milestones tied to quality checks before the final payment is released.
• Intellectual property protection. Register trademarks in China early and use an agreement designed to be enforceable there.

If the deal has already gone wrong

1. Gather the contract, purchase orders, payment records, specifications, inspection reports, and all communications (including WeChat messages).
2. Check the dispute-resolution clause — it controls where and how you can proceed.
3. Verify the supplier’s registered identity and status.
4. Consider a formal demand letter in Chinese. A well-prepared letter from counsel often produces a negotiated outcome.
5. Evaluate where the supplier has assets, and whether payment bank changes suggest fraud rather than a commercial dispute. If you were tricked into wiring to a new account, contact your bank and law enforcement immediately.
6. Check your export-control and tariff position before making any new arrangement. See our page on sanctions and export controls.

Frequently asked questions

Can I just sue in Oklahoma?

Sometimes, if the court has jurisdiction over the supplier and the contract does not require arbitration elsewhere. But consider enforcement before you spend money on a judgment you cannot collect.

Is my contract enforceable if it is only in English?

It can be, but an English-only contract with an unclear party name and a U.S. court clause is much harder to enforce in China.

How long does arbitration take?

Many commercial arbitrations conclude in roughly a year, often faster than cross-border court litigation.

Talk to Reams Law

Reams Law advises businesses on cross-border contracts and disputes, and has Chinese speakers available for consultations. Call (405) 285-6878 or contact us online. Learn more on our International Law page.

This article discusses U.S. and international law in general terms. It is not legal advice, and reading it does not make anyone a client of this firm. Statutes change, courts reinterpret them, and the outcome of any matter depends on its own facts. Speak with a lawyer about your situation specifically.