When a Chinese company stops paying, the first weeks decide most of the outcome. Get a written acknowledgment of the debt, ideally a reconciliation statement bearing the company chop; preserve the chat and email record; check the debtor's public court and enforcement records to see whether it can still pay; and keep the limitation period in view: three years for most claims, four for international sales of goods. If the debtor has assets and is stalling, a lawsuit or arbitration filed together with an asset freeze is usually what brings it back to the table.
The common pattern is familiar. Payments slip, the Chinese side is friendly and apologetic, a partial payment arrives now and then, and a year passes. By the time the foreign company decides to act, the contact person has left, the WeChat account has been deleted, and the debtor has moved its business into a new company. Nothing in that sequence is unusual, and almost all of it is avoidable.
Secure the evidence while the relationship is still cordial
The single most useful document in a Chinese debt case is a statement from the debtor confirming the amount owed. A reconciliation statement stamped with the company chop is best; an email or WeChat message from an authorised person confirming the balance is next. Ask for it as a routine accounting matter while relations are still good. Debtors who later dispute quality or delivery have a much harder time arguing against their own confirmed balance.
WeChat and email are admissible as electronic evidence in Chinese courts, but you have to show who was on the other end and that the record is complete. Export or screenshot conversations with the counterparty's profile visible, keep the original devices, and for important records consider notarised preservation or a recognised electronic evidence platform. Keep the contract, purchase orders, delivery records, invoices and payment history together. For a supplier dispute, see also our guide to what to do when a Chinese supplier breaches the contract.
Watch the limitation period
The general limitation period in China is three years from when you knew or should have known of the breach (Civil Code, Article 188). For contracts for the international sale of goods, it is four years (Article 594). The period is interrupted and restarts when you make a demand for payment, when the debtor agrees to pay, or when you sue or start arbitration (Article 195). A written demand that the debtor demonstrably received, or a debtor's message promising to pay, therefore does double work: it is evidence of the debt and it restarts the clock. Keep proof of both.
Can the debtor pay? Check before you spend
Before deciding how hard to push, look at the debtor from the outside. The National Enterprise Credit Information Publicity System shows its registration, shareholders, registered capital and any abnormal-operation listings. The China Enforcement Information Disclosure website shows whether it is already a judgment debtor, blacklisted as dishonest or subject to consumption restrictions. The Chinese court judgments database shows other lawsuits. A debtor already facing dozens of enforcement cases is a different problem from one that is simply stalling.
The 2024 Company Law gives creditors a useful tool. Where a company cannot pay its debts as they fall due, the company or a creditor whose debt is due can require shareholders who have not yet paid in their subscribed capital to pay it early (Article 54). A debtor with large unpaid registered capital may have more to reach than its bank balance suggests.
From demand letter to court
A lawyer's letter from a Chinese law firm, in Chinese, sent to the debtor's registered address and its legal representative, often produces either payment or a negotiation. If it leads to a settlement, put it in writing with a payment schedule, an acceleration clause, and where possible security: a guarantee from the legal representative or a related company, a pledge, or transfer of goods or receivables. An instalment plan without security mostly buys the debtor time.
If the debtor has assets and keeps stalling, the next step is suit or arbitration, depending on the contract's dispute clause, filed together with an application to freeze assets. Courts can freeze bank accounts, receivables and equity, and a frozen debtor tends to settle. See our guides to suing a Chinese company and property preservation. For small, undisputed debts, a payment order under the Civil Procedure Law can be quicker, but it ends as soon as the debtor files a written objection, so it only works against debtors who will not bother to respond.
What we would steer clients away from is hiring a debt-collection agency in China. Commercial debt-collection businesses are not permitted in mainland China, and the ones that operate anyway can expose the creditor to criminal and civil risk. Where the debtor is insolvent, the realistic route is to file a claim in its bankruptcy, and to examine whether assets were moved out before it failed.
Frequently asked questions
- How long do I have to sue a Chinese company for an unpaid debt? Generally three years from when you knew or should have known of the non-payment, and four years for international sale of goods contracts. A demand for payment or the debtor's promise to pay restarts the period.
- Are WeChat messages valid evidence in a Chinese court? Yes, as electronic data, if you can show who sent them and that the record is complete. Preserve the original device and consider notarised preservation for key conversations.
- Can I use a debt-collection agency in China? Commercial debt-collection businesses are not permitted in mainland China. A demand letter from a Chinese law firm, followed by litigation or arbitration, is the lawful route.
- What if the Chinese company says it has no money? Check its public enforcement records and registered capital. Under the 2024 Company Law, creditors can require shareholders to pay unpaid subscribed capital early when the company cannot pay its debts.
Related service: Claims Against Suppliers: Demand Letters, Arbitration & Litigation ↗
Act while the evidence and the assets are still there.
We can review your documents, check the debtor's position, send a demand letter in Chinese, negotiate a secured settlement, and, if needed, file suit or arbitration together with an asset freeze.
Related Reading
- How to Freeze a Chinese Company's Assets Before You Sue: Property Preservation in China
- Suing a Chinese Company in a Chinese Court: What Foreign Businesses Should Expect
- Chinese Supplier Breached the Contract: What Can a Foreign Buyer Do?
This article is general information about recovering debts from companies in mainland China as of 28 September 2026 and does not constitute legal advice. The right approach depends on the contract, evidence, amount and the debtor's position.