Your Chinese Supplier Didn't Deliver. What Now?

The goods were supposed to ship last week — or last month. The supplier's WhatsApp replies are getting slower. Your customer is asking questions you don't have answers to. This is the moment that separates buyers who recover from buyers who don't.

Not because of any legal magic, but because the first week of a non-delivery usually decides the case: what evidence exists, whether the supplier still has assets, whether the goods still exist, and whether you still hold any leverage. Here's the sequence to run.

First, diagnose what you're actually dealing with

Non-delivery isn't one problem. Sort yours:

• Late, but communicating. Delays with explanations, new dates, some progress. Usually a commercial problem, solvable with pressure and contract terms.
• Late, and dodging. Excuses stacking, promises breaking, communication thinning. This is the danger zone — treat it as a potential default, not an inconvenience.
• Partially delivered. Some goods arrived; the rest didn't. Check what the contract says about partial performance and what you've accepted — accepting part of a shipment can affect your rights on the rest.
• Paid, never shipped, gone quiet. The worst category: your money moved, nothing came back. This is where the case study on this site started — and where the correct sequence matters most.

Your diagnosis determines your moves. "Late but communicating" gets a different treatment than "paid and silent."

Step 1: Lock the evidence — today

Before you send any angry message, do this in order:

• Back up everything. The full WhatsApp/WeChat thread, emails, the PI or contract, invoices, payment confirmations — downloaded and stored, not screenshotted. Raw records are stronger than screenshots.
• Stop negotiating casually. From now on, anything important goes in writing. You're not being hostile; you're building the record. A supplier who knows you're documenting behaves differently.
• Check your payment trail. Exactly what you paid, when, to which account, under what reference. If the beneficiary isn't the registered company, that's an immediate escalation signal (see the verification guide).
• Note the promises. The supplier's own messages promising delivery dates, apologizing, explaining delays — these are admissions that become evidence.

One habit worth naming: in the case study, the supplier sent a photo of the machines showing fifty-plus hours on "brand new" units, then offered to adjust the meters. Its own messages became the strongest evidence in the file. What your supplier writes to you now may be the most valuable document in your case.

Step 2: Read your contract like a lawyer

Now look at what your agreement actually says about delivery:

• Delivery dates and Incoterms. When was delivery promised, and at what point (FOB loading, CIF arrival)? Delay is measured against the contract, not against your feelings.
• Delay and breach clauses. Liquidated damages, late-delivery penalties, the right to cancel after X days.
• What you agreed to accept. Inspection windows, quality standards, and whether you accepted goods "as is."
• Governing law and dispute terms. Whether the CISG applies and which forum is agreed.

Most cross-border orders don't have a real contract — they have a PI and a chat history. That's survivable (see below), but if there's no delivery clause anywhere, your legal position is built on the CISG and Chinese law defaults. This is also why contract review before signing is the cheapest legal work in cross-border trade — the delivery clause you didn't have is now costing you.

Step 3: The written demand — and when to skip it

Send a formal written demand: state the contract, the promised delivery, the current status, and a final, reasonable deadline — typically 7–14 days — after which you will treat the contract as breached and pursue remedies. Keep it professional and factual. This demand:

• Gives the supplier a last chance to perform (which courts like to see — it shows good faith),
• Creates a timestamped record of your position,
• And can interrupt the limitation clock if the dispute drags on.

But note the exception from the case study: if you have real reason to believe the supplier will move the goods or hide assets the moment it knows you're serious, a written demand can be a warning shot you shouldn't fire. In that situation, the sequence changes — evidence, then asset preservation or the demand letter at a strategic moment, not a polite email first. This judgment call is exactly what a lawyer's demand letter service (or a quick consultation) is for.

Step 4: Know your remedies: Chinese law and the CISG

If the deadline passes, you have real remedies — not threats, actual legal rights:

Under the Civil Code of the PRC

• Specific performance / demand to perform. You can demand the supplier actually deliver — subject to practical limits if they can't.
• Avoidance (cancellation). Article 563 of the Civil Code gives you the right to rescind where the other party's delay makes performance impossible, or where the purpose of the contract is defeated — including after a reasonable additional period expires without performance.
• Damages. Article 577: a party who fails to perform must bear liability for breach. Article 584: damages cover the loss — including lost profit — within the scope the breaching party foresaw or should have foreseen at the time of contracting. That foresight test is why a contract that states your resale plans and penalty exposure can dramatically improve your recovery.

Under the CISG (if it applies)

• Articles 45–52 give the buyer a complete toolkit: require performance, fix an additional period, declare the contract avoided for fundamental breach, claim damages, and claim interest.
• The CISG applies automatically to sales between parties in different contracting states (China and most major trading partners) unless excluded — so for most of your orders it's already part of your deal.

Two practical notes. First, avoidance is not automatic — you must declare it, and doing it wrong can leave you stuck with a contract you've tried to walk away from. Second, damages under both systems are real but evidence-dependent: the more you can show (lost resale contracts, confirmed costs, documented delay), the more the claim is worth. This is where preparation pays again.

Special case: the goods or documents are still in your control

Depending on where the deal broke down, you may hold leverage you haven't used:

• You still hold the bill of lading. If the goods shipped but you're withholding documents pending payment or quality resolution — you control the goods' release. That's your strongest card; don't release it without value in return.
• Goods sitting at port. Unclaimed goods accrue demurrage and storage charges that can exceed the cargo's value. Decide fast: accept, reject, or redirect — and check your contract for who bears these costs. (Payment and demurrage terms are exactly what a review should have caught.)
• Deposit balance. If you haven't paid in full, you hold the last payment. Don't release it while the core problem is unresolved — paying the balance to a supplier who hasn't shipped converts your leverage into their windfall.

Step 5: Escalation — preservation, then litigation

If the demand fails and the amount justifies it, the sequence is:

1. Asset preservation — freeze bank accounts or seize assets before or during the case. If the supplier is still trading, this is how you make sure there's something to collect later. Timing beats everything: once the supplier knows it's being sued, money tends to move.
2. Litigation — file in the competent Chinese court. Foreign parties must be represented by a China-licensed lawyer; the process is workable, evidence-driven, and increasingly routine for cross-border claims. The full path is covered in the step-by-step litigation guide.
3. Enforcement — judgments are only worth what they collect. Where the supplier is a one-person company, its sole shareholder can be brought in personally (Company Law of the PRC, revised 2023, Article 23(3)). See the enforcement guide for the full picture.

The decision sequence in one page

Situation	Move	When
Late, communicating	Written demand with final deadline; keep documenting	Immediately
Late, dodging	Demand letter; check supplier solvency; consider preservation	Within days
Partial delivery	Review acceptance; demand the rest; check contract terms	Before accepting anything further
Paid, silent, goods may exist	Evidence lock → strategic demand → preservation → suit	Act this week
Fraud signals (wrong account, no license, "fix the paperwork")	Escalate hard; consider police involvement for identity verification	Immediately

The common thread: speed plus documentation. Every week you wait is a week the supplier uses to move goods, drain accounts, or simply stop caring. The buyers who recover are the ones who acted in the first weeks — not the first quarter.

This article is general information, not legal advice, and does not create an attorney–client relationship. Legal citations refer to the named statutes as currently in force; always confirm current law with counsel. Outcomes vary by case; nothing here is a guarantee of results.