What should Chinese companies do if they delay paying for goods?

If a Chinese company delays payment of the purchase price, you can take the following measures to address the situation:

1. Contact the Supplier

Firstly, get in touch with the Chinese company and confirm the status of the payment. Understand the reasons, as it could be due to financial issues, delayed remittance, or other factors causing the delay.

2. Review Contract Terms

Review the purchase contract you signed with the supplier to confirm the payment terms and deadlines. Ensure that you have the right to demand timely payment of the purchase price.

3. Reminder for Payment

 Remind the supplier of the deadline for payment, clearly indicating that they are obligated to fulfill the contract and make the payment on time.

4. Written Notification

 If verbal reminders are ineffective, send a written notification to the supplier, clearly stating your requirements and the contractual deadline.

5. Record Communication

Keep records of all communication with the supplier, including emails, phone calls, and written notifications. This will help you protect your interests in the future.

6. Negotiate a Solution

 Try to negotiate a solution with the supplier. This may include a deferred payment, installment plan, or other reasonable arrangements.

7. Include Penalty Clauses

 In future contracts, consider including penalty clauses to incentivize the supplier to make timely payments.

8. Consult Legal Experts

 If the supplier continues to delay payment, you may need to consult legal experts. They can provide legal advice on your rights and help you address the issue.

9. Preserve Legal Remedies

 If the outstanding payment from the supplier involves a significant amount or persists for an extended period, you may need to preserve your legal remedies and take legal action to recover the owed funds.

When dealing with payment-related issues, remain calm and professional, and take appropriate actions to protect your interests. If necessary, seek professional legal and trade advice to ensure that your legitimate rights are properly protected.

Please note that this text should not be considered as legal advice or opinions on specific cases. It only represents the court's judgment rules observed by the author's team when dealing with similar cases. If you encounter legal issues, you may contact Lawyer Xu Baotong for more targeted advice and solutions.

Xu  Baotong

Elaw&JinKun Lawfirm |CEO

Arbitrator of China

Member of the Chartered Institute

Member of The Association of Credit and Collection Professionals 

Arbitrator of Thailand International Arbitration Center 

Mediator of Asian Alternative Dispute Resolution Centre

Menmber of the International Bar Association

Email:xbtlawyer@outlook.com

WhatsApp:+86 13917219966