My Chinese Supplier Took the Deposit and Disappeared — What Should I Do?

Your Chinese supplier took your deposit. No shipment, no replies, and the sales manager’s WeChat account no longer exists.

Before you write off the money or book a flight to China, read this. In most cases, the next 30 days matter more than the next lawsuit.

Step 1: Investigate before you litigate

The first move is not filing a case — it’s finding out who you’re actually dealing with. Is the company still operating? Is the factory still producing? Does it own property, equipment, or equity in other companies?

We run this investigation before every engagement, and here’s why it matters: we regularly see foreign plaintiffs win their cases — and recover nothing, because the debtor had already become an empty shell. A judgment against a company with no assets is just paper. An investigation takes days; a wasted lawsuit takes a year.

Step 2: If the company is solvent — freeze first

If the investigation shows the company is operating normally, the next move is asset preservation: applying to a Chinese court to freeze the debtor’s bank accounts, equipment, and property before the full case is heard.

This is the single most powerful tool in Chinese debt recovery, and it works precisely because it surprises the debtor. A frozen bank account means payroll can’t run and suppliers can’t be paid — suddenly, the debtor is far more motivated to talk than you are.

Step 3: Choose a fee structure that can’t hurt you

The fear that stops most foreign creditors is rational: “What if I spend $50,000 on lawyers and recover nothing?”

That’s exactly why SuitWin funds claims instead of billing them. We pay the attorney’s fees. Your only expenses are third-party costs — court fees, preservation, insurance — at cost, against receipts. If nothing is recovered, you owe nothing.

One more thing: watch the clock. China’s limitation period for commercial claims is 3 years. Every month of silence from the debtor is a month off that clock.

Facing this right now? Get a free case evaluation → We reply within 24 hours, and you’ll receive a written Case Evaluation Report with our honest assessment.