———————————————
Collaboration with Chinese suppliers and exporters has long become a standard element of international business. China is one of the largest suppliers in the world, and every year thousands of companies enter into agreements to supply goods from this country. However, alongside the advantages, legal risks also arise: fraud, non-fulfillment of contract terms, quality issues, or delays. Successful interaction with Chinese counterparts requires a deep understanding of the market specifics, legislation, and local realities. That is why many Ukrainian importers choose to work with experienced partners, such as Dragon Logistics, which specializes in international shipments from China and helps clients avoid critical mistakes at the agreement preparation stage.
To avoid legal complications, it is important to establish the relationship with the supplier correctly from the very beginning. The first step is a thorough verification of the counterparty.
Choosing a reliable partner: how to verify a Chinese supplier
When entering into a contract with a Chinese company, you should not rely solely on a good impression or an attractive offer. Supplier verification is a key step in legally protecting your business.
Main verification methods include:
- company registration check – request a copy of the business license. In China, all legal companies must be registered with the State Administration for Market Regulation (SAMR);
- unified Social Credit Code (USCC) – similar to a tax ID, allowing you to check the company via official platforms such as qcc.com or tianyancha.com;
- reputation and reviews search – look for feedback on independent platforms, forums, among Ukrainian importers, or on Alibaba, focusing on Gold Supplier or Verified Supplier status;
- production audit – if possible, arrange a visit to the production facility through a third party or use inspection company services;
- video calls and demonstrations – these can help assess the reality of the office, staff, and communication level.
A legally sound choice of partner significantly reduces risks and opens the way to stable and secure cooperation. The next stage is properly drafting the contract.
Contract drafting: what must be included
A correctly drafted contract is the foundation of safe and effective collaboration with Chinese partners. In international trade, verbal agreements have no legal force. All key terms must be clearly documented in writing and in two languages – English and Chinese.
Important elements to include in the contract:
- full details of the parties – official company name, address, legal code (USCC), contact person;
- subject of the contract – clear description of the goods (specifications, quantity, dimensions, materials, quality);
- price and currency of payment, payment terms (advance, deferred payment, letter of credit);
- delivery terms and Incoterms (e.g., FOB, CIF, DDP);
- quality guarantees and conditions for returns/refunds;
- quality inspection conditions before shipment;
- liability of the parties in case of breach;
- jurisdiction and dispute resolution mechanism (usually arbitration in Hong Kong, Singapore, or CIETAC in China).
The contract should be signed by authorized persons, preferably with seals, and notarized if necessary. Clarity in details is your protection in case of force majeure or supplier misconduct.
Jurisdiction and dispute resolution
In international trade, it is important not only to agree on the supply of goods but also to anticipate a mechanism for protecting your rights in case of conflict. When working with Chinese suppliers, businesses must pay careful attention to the jurisdiction and dispute resolution clause in the contract. This section can be crucial if the supplier breaches obligations.
The safest options include:
- international arbitration, e.g., in Singapore (SIAC) or Hong Kong (HKIAC) – reputable, independent platforms with high credibility;
- CIETAC – China International Economic and Trade Arbitration Commission, operating under Chinese law;
- court at the supplier’s place of registration – less desirable due to language barriers and complexity of legal proceedings in China.
When choosing a jurisdiction, it is important to specify it clearly in the contract, along with the arbitration language and governing law. A well-drafted dispute resolution mechanism is a legal shield that allows you to defend your interests even in the most challenging circumstances.
Intellectual property: protecting your brand
In dealings with China, intellectual property protection is one of the most important aspects. Even if you only order production of goods under your own brand, there is a risk of design or packaging copying, or even registration of your trademark by the supplier in China.
To avoid issues:
- register your trademark in China – this officially protects your rights within the country;
- conclude a confidentiality agreement (NDA) and an intellectual property agreement (IP agreement) with the supplier;
- use unique markings that are harder to replicate and control production volumes.
Legal aspects of working with Chinese suppliers are the foundation of secure international business. Verifying the counterparty, drafting a proper contract, protecting your brand, and defining jurisdiction all minimize risks. A reliable guide in this process can be the experience of Dragon Logistics, which helps clients build transparent and secure supply chains from China.