For small claims under $200,000 with Chinese companies, Chinese courts are often the best choice. Learn why local litigation improves enforceability, reduces costs, and speeds up resolution.

In cross-border business, dispute resolution is rarely top of mind — until a problem arises. This is especially true for smaller claims,between a foreign company and a Chinese company. One of the most important (and overlooked) decisions in these cases is choosing the right forum for resolving the dispute.

For many situations, the most practical and effective option is to resolve the dispute
in Chinese courts. Here’s why.

1.Enforceability of Judgments in China

Chinese courts generally do not recognize or enforce foreign court judgments. That means even if you win in your home jurisdiction, collecting in China will be extremely difficult — often impossible — unless the Chinese company has assets in a country that enforces your judgment.

By filing in China, you start with a judgment that can actually be enforced against
assets located in China, avoiding the wasted time and expense of chasing an
unenforceable foreign decision.

2. Essential When the Chinese Company Has No Foreign Assets

The enforcement challenge becomes critical if the Chinese company has no assets outside China. In these cases, a foreign judgment is meaningless without alocal enforcement mechanism.

A Chinese court judgment gives you a direct path to collect against the company’s assets in China — turning a legal win into a real, recoverable outcome instead of just a “paper victory.”

3. Evidence Requirements — Prepare in Chinese from the Start

Chinese courts require all evidence to be in Chinese. Foreign-language documentsmust be translated, notarized, and often legalized at a Chinese embassy. A process that adds significant cost, time, and bureaucracy.

Whenever possible, prepare foreseeable evidence in Chinese from the outset. This speeds
up the process, reduces expenses, and minimizes the risk of translation errors that could undermine your case.

4.Cost-Effectiveness for Small Claims

For claims under $200,000, legal costs are often the deciding factor in whether to pursue
a case. Chinese court litigation is generally less expensive than inmany other jurisdictions.

You’ll also save by:

• Avoiding expensive translation and notarization steps if evidence is already in Chinese.
• Eliminating the need for separate enforcement proceedings abroad.
  

5. Impartiality of Chinese Courts in Major Cities

Contrary to outdated perceptions, courts in major Chinese cities can be impartial andobjective toward foreign companies. Many are evaluated on internal KPIs that reward fair handling of foreign-related disputes, reducing concerns about local bias.

6. A Practical Choice for Foreign Businesses

Choosing Chinese courts:

• Aligns with local legal realities.
• Demonstrates respect for Chinese legal processes, building goodwill in business relationships.
• Reduces the risk of unenforceable judgments and the financial or reputational damage that can follow.
  

Conclusion
For small claims against Chinese companies — especially when the company has no
assets abroad — Chinese courts are often the most practical forum. The
combination of enforceability, lower costs, streamlined evidence requirements,
and impartial handling makes them a smart choice for foreign companies looking
to protect their interests and secure real, enforceable results.

In a dispute with your Chinese supplier or business partner? Contact us at inquiries@chinalawsolutions.com