If you’re asking whether you can sue a company in China, the short answer is yes: foreign individuals and foreign enterprises can bring civil and commercial claims in Chinese courts, and Chinese courts have expanded jurisdiction over foreign‑related disputes under the amended Civil Procedure Law that took effect on 1 January 2024. Debevoise

Right after that, though, comes the real question: when should you sue a company in China, which court should you use, and what should you expect in terms of cost, time, and enforceability?

How does jurisdiction work under the Civil Procedure Law?

To sue a company in China, the court must have jurisdiction. The Civil Procedure Law says that a civil action against a legal person or organization is normally heard where that defendant is domiciled—i.e., where it is registered or mainly operates. cicc.court.gov.cn

The 2024 Civil Procedure Law and its 2023 amendments go further for foreign‑related cases:

• Chinese courts now have broader power to hear any foreign‑related civil or commercial dispute, not just contract or property disputes, except for certain personal‑status matters. Debevoise
• New rules clarify when Chinese courts have exclusive jurisdiction, for example over PRC‑oriented joint‑venture disputes and certain IP or natural‑resource projects. DLA Piper

In practice, this means you can sue a company in China if:

• The defendant is domiciled in China; or
• The dispute is strongly connected to China (performance, subject matter, branch office, or other factors the law lists)

Well‑drafted contracts often state exactly which court will hear any attempt to sue a company in China, which reduces fighting over jurisdiction later.

Who can sue a company in China and which courts hear foreign‑related cases?

Any entity with civil capacity—Chinese or foreign—may sue a company in China if it has a concrete interest in the case. For foreign‑related disputes, the Supreme People’s Court has issued detailed rules on which level of court should hear which case values. For example, its 2024 jurisdiction interpretation assigns most foreign‑related commercial cases to primary courts but sends very large or complex disputes to intermediate or high people’s courts. afdip.com

Specialized forums also exist:

• The China International Commercial Court (CICC) handles certain high‑value, foreign‑related disputes and can integrate litigation, mediation, and arbitration resources. cicc.court.gov.cn

So if you sue a company in China over a major cross‑border contract, you may find your case in a court that routinely handles global disputes.

Step‑by‑step to sue a company in China

Here’s a practical high‑level workflow if you decide to sue a company in China:

1. Check your dispute resolution clause
   • See whether your contract sends you to Chinese courts, a specific arbitration body, or foreign courts. Your right to sue a company in China may already be defined there.
2. Assess jurisdiction and limitation period
   • Confirm the Chinese court has subject‑matter and territorial jurisdiction and make sure the claim is still within the statute of limitation under Chinese law.
3. Collect evidence before you sue a company in China
   • Chinese courts rely heavily on documentary evidence—contracts, emails, WeChat logs, shipping documents, invoices, chops. Gather and organize everything, then translate key evidence into Chinese.
4. Engage PRC counsel to draft the complaint
   • Only Chinese‑licensed lawyers can appear in Chinese courts. They’ll draft the complaint explaining why the court should let you sue a company in China, what facts support your claim, and what relief you want.
5. File the case and pay the case‑acceptance fee
   • You submit the complaint, evidence list, and authority documents (POA, certificates of incorporation) and pay the official court fee, which is usually calculated as a percentage of the claim.
6. Service on the defendant and exchange of evidence
   • If you sue a company in China that is domestic, service is straightforward. For foreign defendants, the amended Civil Procedure Law streamlines service abroad and allows more flexible methods, which also matters for cross‑claims and counterclaims. Covington & Burling
7. Hearings, judgment, and appeal
   • Civil trials are often focused and document‑driven. After hearings, the court issues a written judgment. Either side can usually appeal once, which may be crucial if you sue a company in China over a high‑value dispute.

What evidence and language issues arise when you sue a company in China?

When you sue a company in China, the rule of thumb is: the party who asserts a fact must prove it. Key points:

• Evidence in foreign languages must be translated into Chinese by qualified translators.
• Electronic evidence—emails, WeChat messages, server logs—is admissible but often needs notarization or preservation orders to avoid later disputes about authenticity. cicc.court.gov.cn

Given this, foreign investors who may one day need to sue a company in China should keep contracts bilingual, insist on chops or e‑signatures that are valid under PRC law, and store records in ways that support later use in court.

What happens after you sue a company in China and win—can you enforce the judgment?

Winning after you sue a company in China isn’t the end; enforcement matters. If the defendant’s assets are in China, courts can freeze bank accounts, seize property, and auction assets under the Civil Procedure Law enforcement chapter.

For foreign judgments, the picture is different: a foreign court victory only helps you sue a company in China indirectly if you can have that judgment recognized and enforced. Guides from ICLG and Chambers note that Chinese courts rely on treaties or the principle of reciprocity when deciding whether to enforce foreign civil judgments, and recent cases show a gradual expansion of reciprocity in favor of enforcement. ICLG Business Reports

This is one of the reasons many advisors say it’s often better to sue a company in China directly—or use PRC‑seated arbitration—than to rely on foreign litigation if most assets sit onshore.

When is it better not to sue a company in China but to arbitrate instead?

Sometimes the smartest move is not to sue a company in China in court, but to pursue arbitration:

• PRC‑seated arbitration (CIETAC, BAC, SHIAC, etc.) produces awards that Chinese courts enforce under their arbitration review system. cicc.court.gov.cn
• Foreign‑seated arbitration awards can be enforced in China under the New York Convention, which China has joined, again through Chinese courts.

If your contract already requires arbitration, trying to sue a company in China in court could see your case dismissed for lack of jurisdiction. Drafting the right dispute clause upfront is key.

What risks exist, and how can you manage them?

Any decision to sue a company in China should factor in practical risks:

• Time and cost: World Bank research on “enforcing contracts” shows that China has significantly reformed court efficiency, moving into the global top tier in past Doing Business rankings, but complex cases can still take many months or more than a year. World Bank
• Counterclaims and local dynamics: When you sue a company in China, the defendant can counter‑sue or file complaints with regulators, raising business and reputational stakes.
• Exit bans and travel risk: In rare but high‑profile cases, individuals involved in civil or commercial disputes have faced exit bans while cases or enforcement are pending. Reuters reporting in 2025 highlights business‑related exit bans on some foreign executives, reminding investors to have clear travel and risk policies before they sue a company in China or send staff into contentious situations. Reuters

You should always get jurisdiction‑specific legal advice before deciding to sue a company in China, especially where staff safety or regulatory sensitivities are involved.

How smart FDI planning reduces the chance you’ll need to sue a company in China

The best way to handle disputes is often to avoid needing to sue a company in China in the first place. Solid structuring helps:

• Use a clearly drafted Chinese‑law contract with bilingual text and detailed dispute clauses.
• Set up your own onshore entity—for example, a WFOE or JV—so you’re not relying solely on distant contracts with distributors.
• Build in security measures like advance payments, letters of credit, or retention of title.

If you’re planning serious operations in China, it’s worth thinking about structure before you ever need to sue a company in China. For a deeper dive on how to establish entities that support enforceable relationships, see FDIChina’s overview of China company registration.

FDIChina’s scope includes China WFOE registration, China JV registration, China RO registration, Hong Kong LLC & Branch Office registration, China Free Trade Zones, China Tax & Accounting, Company Closure, and Import/Export Licenses—all of which shape how and where you might sue a company in China or resolve disputes later.

FAQ

1. As a foreigner, can I sue a company in China?

Yes. Foreign individuals and foreign companies can sue a company in China if the court has jurisdiction and you have a genuine civil or commercial claim. Debevoise

2. Is it fair for foreigners who sue a company in China?

No system is perfect, but foreign parties do win cases, and the Supreme People’s Court continues to refine rules to support foreign‑related rule of law and high‑level opening‑up. Supreme People’s Court Monitor

3. Should I sue a company in China or in my home country?

If the defendant’s main assets are in China, it’s usually more efficient to sue a company in China or arbitrate with enforcement in China, instead of trying to enforce a foreign judgment later under reciprocity. ICLG Business Reports

4. How long does it take to sue a company in China?

Time depends on complexity, but global contract‑enforcement data suggests Chinese first‑instance commercial cases often resolve within many months rather than many years, and reforms have focused heavily on efficiency and digital tools. World Bank

5. Do I need a Chinese lawyer to sue a company in China?

Yes. Only PRC‑licensed lawyers can act as counsel in Chinese courts, so you should appoint local litigation counsel—or arbitration counsel if your contract requires arbitration—before you sue a company in China.

Key sources

• Civil Procedure Law (2024 revision) and commentaries (Debevoise, Covington, China Briefing) explaining expanded jurisdiction, service, and foreign‑related rules. cpahkltd.com
• Supreme People’s Court & CICC materials on foreign‑related jurisdiction, international commercial courts, and online litigation rules. KWM
• Enforcement reports (ICLG, Chambers, ASIL) on recognition and enforcement of foreign judgments in China. ICLG Business Reports
• World Bank / Doing Business research on enforcing contracts and China’s reform trajectory. World Bank+1
• China Law Blog and other practitioner commentaries showing that foreign companies can and do sue a company in China and prevail. Harris Sliwoski LLP