Meta Description: Learn whether foreign companies can sue Chinese companies in China, including jurisdiction requirements, evidence preparation, and asset preservation strategies.
Short Answer: Yes.
Foreign companies and individuals are legally allowed to sue Chinese companies or individuals in Chinese courts. However, whether the lawsuit is effective depends on jurisdiction, evidence preparation, asset control, and litigation strategy.
This article explains how litigation by foreign plaintiffs actually works in China—and what determines success or failure.
1. Legal Standing of Foreign Plaintiffs in China
Under PRC law, foreign companies and individuals enjoy the same procedural rights as domestic parties in civil and commercial litigation. Chinese courts routinely accept cases filed by foreign plaintiffs, including disputes arising from international trade, supply contracts, and payment defaults.
The key issue is not whether you can sue, but how the case is structured.
2. Jurisdiction: Where Should the Lawsuit Be Filed?
Jurisdiction is often the first obstacle for foreign plaintiffs.
Chinese courts determine jurisdiction based on factors such as:
- The defendant’s domicile or place of business
- Place of contract performance
- Agreed jurisdiction clauses in the contract
Many foreign companies mistakenly assume they can choose any Chinese court. In reality, filing in the wrong court can lead to delays or dismissal.
A proper jurisdiction analysis should be done before any formal filing.
3. Evidence Requirements: A Common Failure Point
Foreign plaintiffs frequently lose leverage due to evidentiary issues rather than substantive law.
Typical challenges include:
- Evidence generated outside China requiring notarization and legalization
- Missing original documents
- Incomplete evidence chains for payment, delivery, or breach
Chinese litigation is evidence-driven. Courts rely far less on discovery than common law jurisdictions.
Early evidence planning is critical.
4. Asset Preservation: Litigation Is Not Just About Winning
Winning a judgment does not automatically mean recovering money.
In many cases, the defendant may:
- Transfer assets before or during litigation
- Empty bank accounts
- Operate through multiple entities
Applying for asset preservation at the right time can determine whether the judgment has real value.
5. Litigation Timeline and Expectations
Commercial litigation in China typically takes several months at first instance, depending on the court and complexity of the case. Appeals and enforcement add additional time.
Foreign plaintiffs should approach litigation with a realistic understanding of:
- Timeframes
- Costs
- Enforcement risks
Conclusion
Yes, foreign companies can sue Chinese companies in China—but success depends on preparation, strategy, and execution.
Early legal assessment and asset-focused litigation planning often make the difference between a paper judgment and actual recovery.
Call to Action:
If you are considering legal action against a Chinese company or individual, early legal assessment can significantly affect the outcome.