China Trade Dispute Resolution

Client: German industrial equipment manufacturer

Issue: Serious manufacturing defects discovered after delivery of multiple production batches.

Following delivery of industrial components manufactured in China, the client identified substantial deviations from the agreed technical specifications during installation and commissioning. The Chinese supplier denied responsibility, relying on its own internal inspection reports and refusing replacement or compensation.

Resolution: We coordinated independent product inspections in China, preserved technical evidence, reviewed contractual quality obligations, and prepared CIETAC arbitration proceedings. Following legal negotiations supported by expert evidence, the parties reached a commercial settlement providing substantial compensation while avoiding lengthy arbitration.

Client: Canadian engineering company

Issue: Recovery of advance payments exceeding USD 800,000 after supplier default.

The client prepaid substantial amounts under a long-term supply agreement. After repeated delivery failures, the contract was terminated in accordance with its terms. The Chinese exporter nevertheless refused to refund the outstanding balance and ceased meaningful communications.

Resolution: We implemented a staged recovery strategy involving legal notices, asset investigation, evidence preservation, and arbitration preparation. The matter was ultimately resolved through a legally binding repayment agreement, allowing the client to recover the majority of the outstanding debt without full arbitral proceedings.

Client: French consumer products importer

Issue: Persistent delivery delays resulting in downstream contractual losses.

Repeated production delays by the Chinese manufacturer caused missed shipping schedules, inventory shortages, and contractual penalties imposed by the client's European customers. The supplier disputed liability by attributing the delays to market conditions and logistics disruptions.

Resolution: We quantified delay-related losses, reviewed the liquidated damages provisions under the supply agreement, and conducted structured settlement negotiations. The dispute concluded with financial compensation and revised production arrangements that restored commercial cooperation.

Client: United Kingdom sourcing company

Issue: Unilateral contract termination following market price increases.

After global commodity prices increased significantly, the Chinese exporter attempted to terminate an exclusive supply agreement without contractual justification and demanded substantially higher prices before continuing performance.

Resolution: We commenced arbitration, challenged the validity of the unilateral termination, and pursued damages for lost profits and additional procurement costs. The dispute concluded through settlement, providing commercial compensation and protecting the client's contractual interests.

Client: U.S. consumer electronics brand

Issue: Unauthorized design modifications and misuse of proprietary product designs.

During an OEM manufacturing relationship, the Chinese manufacturer introduced unapproved design modifications and subsequently marketed substantially similar products to unrelated third parties, raising concerns regarding contractual compliance and intellectual property protection.

Resolution: We enforced the manufacturing agreement, coordinated evidence preservation, asserted contractual and intellectual property rights, and negotiated corrective measures. The manufacturer ceased the disputed conduct and agreed to provide financial compensation under a confidential settlement.

Client: Australian mining equipment supplier

Issue: Enforcement of an arbitral award following unsuccessful voluntary compliance.

After obtaining a favorable arbitral award arising from an international sales dispute, the client encountered continued resistance from the Chinese respondent, which attempted to delay enforcement through corporate restructuring and asset transfers.

Resolution: We conducted asset tracing, coordinated enforcement proceedings before the competent Chinese court, and obtained preservation measures against identified assets. The enforcement process ultimately resulted in successful recovery under the arbitral award.

Client: British international trading company

Issue: Recovery against a Chinese exporter following non-delivery of prepaid goods.

The client obtained a final judgment from a foreign court after the Chinese exporter failed to perform its contractual obligations despite receiving substantial advance payments. The exporter continued to maintain assets within mainland China.

Resolution: We advised on recognition and enforcement procedures under applicable Chinese law, prepared the necessary court filings, and coordinated enforcement measures against the debtor's assets in China. The judgment was successfully recognized and enforced, allowing the client to recover a substantial portion of its losses.

Client: Netherlands-based industrial products distributor

Issue: Unauthorized sales within an exclusive distribution territory.

The client held exclusive distribution rights for certain industrial products supplied by a Chinese manufacturer. The supplier subsequently began selling directly to customers within the protected territory, undermining the client's commercial position and violating the exclusivity provisions of the distribution agreement.

Resolution: We issued formal legal notices, analyzed the contractual remedies available under PRC law, and represented the client during negotiations. The supplier acknowledged the contractual breach, discontinued the unauthorized sales, and the parties reached a commercial settlement that preserved their long-term business relationship.