Handling of international trade disputes
作者：Seth Wang 发布时间：2023年07月07日
When many foreign companies encounter international trade disputes, they don't know how to deal with them correctly. We have also summed up some of the following experiences as below after a lot of practice:
1. We must first determine whether it is a criminal case
This is very important, because if it is a crime, even if you go to court, there is a high probability that it will be difficult for you to get back real compensation. Most of the fraudulent companies are shell companies or registered overseas companies (even if the English name looks like a domestic company). As for how to judge whether it is a fraud, it can be done from the following aspects:
1) Whether the other party has an actual office location
2) Does the other party require you to remit to an overseas account (Hong Kong accounts are regarded as overseas accounts. Many accounts have NRA letters in front of them, so they must be overseas accounts)
3) After you remit the money, did the supplier the delivery for various reasons
4) Whether the goods you received are very different from the ordered goods, or not even the same product
5) Whether the company and its actual controller belong to some area with high incidence of fraud. This is difficult for foreign companies to judge, and Chinese experienced lawyers have the resourse and abilities to judge this.
There are many details, such as whether the company's website is also in Chinese, and whether the phone number has a landline, which can reflect the possibility of this aspect.
After a preliminary judgment that it is likely to be a criminal case, what you have to do is to contact an experienced Chinese lawyer, sort out and collect evidence, and submit it to the local public security organs.
2. If it is judged that it is not a criminal case, then it is necessary to take civil measures to deal with it.
Here we should first look at the contract jurisdiction, whether it is arbitration or a court. If the agreement is for foreign arbitration, it cannot be sued in China. If it is possible to litigate or arbitrate in China, the company registration info, power of attorney and relevant foreign-related evidence need to be notarized and legalized in the country where the foreign company is registered. It is recommended to apply for property preservation while suing. This approach will put greater pressure on the defendant and facilitate a settlement. According to the law, there is no trial limit for foreign-related litigation cases, but under normal circumstances, courts at all levels will conclude the trial within one year. After the judgment of the first instance, either party can also appeal. Therefore, foreign companies should have a long-term expectation.
In general, if the international trade dispute involves a large amount of money, it is recommended to find an experienced Chinese lawyer to make a judgment and take follow-up legal measures.
