In China, courts charge much less than arbitration institutions. But if there is an appeal, the cost of litigation is not much cheaper than the cost of arbitration.
If a Chinese supplier commits any default or fraud, there are four measures you can take to get your money back: (1) negotiation, (2) complaint, (3) debt collection, and (4) litigation or arbitration.
If you have a dispute with a Chinese company, would you choose litigation or arbitration in China? Perhaps you should first understand the advantages and disadvantages of litigation and arbitration in China.
You need to get a photocopy or a scanned copy of its business license and then check the company’s information in China’s National Enterprise Credit Information Publicity System.
The most important thing is to get the Chinese company to stamp the contract. In addition, it is better to have the contract also signed by the legal representative whose name is on the company’s business license.
You should prepare sufficient documentary evidence prior to filing a lawsuit, preferably provided or presented by the other party. In some cases, you can also rely on the court to collect evidence for you.
Roughly speaking, if you claim USD 10,000, the court cost is USD 200; if you claim USD 50,000, the court cost is USD 950; if you claim USD 100,000, the court cost is USD 1,600.