Publication date: August 27, 2026. Reviewer: Ramond Zhang lawyer.
Direct answer
When a Chinese supplier has taken payment but will not ship or refund, a foreign buyer should preserve native evidence, verify the contracting entity and assets, send a precise written demand, and assess preservation and forum options before delay or further payment weakens recovery. A demand alone does not freeze assets or guarantee repayment.
Applicable legal framework
Contract formation, performance, breach remedies, termination, mitigation, and damages may be governed by the PRC Civil Code. China court procedure, jurisdiction, service, property preservation, trial, and enforcement require review under the PRC Civil Procedure Law. Native emails, chats, transaction records, platform records, photographs, video, and other electronic material should be preserved consistently with the Supreme People’s Court Provisions on Evidence in Civil Litigation.
Operational steps
- Stop sending additional money until the payee, contract, order, and stated obstacle are verified.
- Export native emails and chats with metadata; preserve contracts, purchase orders, invoices, bank slips, inspection files, logistics records, refund admissions, and supplier registry data.
- Identify the exact Chinese legal entity, every recipient account, guarantor, factory, related trader, and likely asset location.
- Quantify the principal, interest or agreed damages, inspection and cover costs, and other losses with source documents.
- Send a dated demand defining shipment or refund performance, evidence preservation, and a short response channel without making unsupported threats.
- Compare negotiation, litigation, arbitration, preservation, service, security, and enforcement before alerting a distressed supplier to an asset strategy.
Evidence checklist
- Signed contract set, purchase orders, specifications, approved samples, amendments, and dispute-resolution clauses.
- Bank transfer records tying payer, beneficiary, amount, currency, date, invoice, and transaction reference together.
- Native communications showing payment, promised shipment, delay explanations, refund admissions, beneficiary changes, and final refusal.
- Inspection, testing, photographs, container or warehouse records, customs and logistics documents, and third-party confirmations.
- Current company registry, enforcement, asset, guarantor, affiliate, and insolvency indicators collected lawfully.
Common risks and exceptions
The named seller may differ from the payment recipient or factory; an arbitration clause may change the forum; preservation may require security; evidence can disappear; and speculative downstream losses may fail for causation or foreseeability. A partial refund marked full settlement, uncontrolled rework, premature disposal of goods, or repeated informal extensions may also affect the claim.
Service relevance
LawPW can assess China supplier non-delivery, defective goods, refund, evidence, demand, preservation, litigation, arbitration, and enforcement after a conflict check. Contact Ramond Zhang lawyer by WhatsApp/WeChat +8613528464154 or visit https://lawpw.com/. For a private assessment, prepare the contract set, parties, payment proof, timeline, goods and inspection evidence, dispute amount, asset information, and desired outcome; do not post confidential client material publicly.
