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Procurement Disputes in China for Foreigners ： Costs & Process

Foreigners' guide to China procurement disputes: lawyer's letter (RMB 2k-5k) & litigation. Covers court fees, document rules (Hague Apostille), and attorney costs.

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China

Procurement Disputes

Foreigners

Lawyer's Letter

Litigation

When foreigners have procurement disputes with suppliers in China, negotiation should be the first step. What if negotiation fails? This article introduces other options.

I. If negotiation fails, you may first engage a Chinese lawyer to send a Lawyer's Letter for quick pressure

A Lawyer's Letter issued in the name of a law firm demands the supplier to perform its obligations (payment, replacement, compensation) and clarifies the consequences of breach of contract.

A Lawyer's Letter is only valid if stamped with the law firm's official seal. This is why simply asking a lawyer to call the other party is usually ineffective (as many of our clients request), because the other party cannot verify the lawyer's identity over the phone.

- Fixed fee: generally RMB 2,000–5,000

- If the other party refuses to cooperate, litigation may be initiated immediately.

II. Full Litigation Procedure

1. Determine the competent court

- General rule: sue at the court where the supplier is located.

- Agreement prevails: if the contract specifies a governing court, follow the agreement; if not, you may choose the court at the place of signing or performance of the contract.

2. Prepare documents (cross-border compliance)

- Identity documents: passport and Chinese translation, power of attorney

- Litigation materials: complaint, key evidence (contracts, orders, payment records, communication records); all foreign documents must be translated into Chinese and stamped by a qualified translation company; documents formed overseas (such as passports) require **Hague Apostille**.

- Document costs: translation RMB 200–500 per document; notarization and certification RMB 1,500–5,000 per document.

3. Case filing and trial

- Filing: submit materials for review; prepay court fees (refundable if you win, borne by the losing party).

- Trial (usually within 3 months after filing): the court will prioritize mediation; if mediation fails, a trial will be held. You may be fully represented by a lawyer and do not need to appear in person.

- Judgment (usually within 3 months after hearing): you may appeal within 15 days after first-instance judgment. If the other party refuses to perform after the judgment takes effect, you may apply for enforcement (freezing accounts, seizing goods).

III. Detailed Cost Breakdown

1. Court-related fees (borne by the losing party)

- Court fees (for monetary claims, calculated progressively):

1. ≤ RMB 10,000: RMB 50

2. RMB 10,000–100,000: amount × 2.5% − 200 (e.g., RMB 100,000 = RMB 2,300)

3. RMB 100,000–200,000: amount × 2% + 300

4. ＞ RMB 200,000: rate decreases gradually, maximum 0.5%

- Preservation fee (freezing assets): 1% for ≤ RMB 100,000; 0.5% for ＞ RMB 100,000; capped at RMB 5,000.

- Appraisal fee (quality / damage disputes): RMB 5,000–20,000.

2. Attorney fees

Fixed fee: RMB 1,000–100,000 per case (higher for cross-border cases); contingency fee: basic fee plus 10%–30% of the recovered amount after winning.

3. Other expenses

- Notarization / certification: RMB 1,500–5,000 per document

- Translation: RMB 200–500 per document

- Travel expenses: reimbursed at actual cost for out-of-town cases.

IV. Practical Suggestions

1. Include a clause in the contract: *"The breaching party shall bear all reasonable costs of rights protection, including attorney fees and court fees."*

2. Keep full written evidence of communications, payments, and inspections; avoid oral agreements.

3. Prioritize sending a Lawyer's Letter: low-cost attempt to settle and avoid lengthy litigation.

4. Choose a cross-border lawyer: preferably a PRC lawyer experienced in foreign-related procurement disputes and bilingual.

China NPC Deputy Urges Professional Sex Ed Teachers at 'Two Sessions'

An NPC deputy proposes integrating comprehensive sex education into China's national curriculum from kindergarten, citing a shortage of professional teachers. The call follows data showing 82.74% of child sexual assault cases involve acquaintances, urging training programs and university minors to ensure quality instruction.

Tags:

China

Sex Education

Teacher Training

Education Policy

Child Protection

A deputy to the 14th National People's Congress (NPC) has called for comprehensive sex education to be made a formal part of China's national curriculum, with mandatory classes starting as early as kindergarten. The proposal was put forward on Wednesday on the sidelines of this year's "two sessions," as learned by the Global Times.

Chen Wei, a deputy to the 14th National People's Congress and assistant to the head of the Third Affiliated Hospital of Zhejiang Chinese Medical University Photo: screenshot

Chen Wei, the NPC deputy and assistant to the head of the Third Affiliated Hospital of Zhejiang Chinese Medical University, told the Global Times that sex education in China still lags far behind international norms. She emphasized the urgency of strengthening such education amid frequent reports of campus sexual assault and unintended teenage pregnancies.

According to statistics from the Girls' Protection public welfare team, an analysis of 205 publicly reported child sexual assault cases in 2024 reveals the severity and complexity of crimes against minors, southcn.com reported. The data shows that more than 690 children became victims, with girls accounting for over 90 percent of the total. Notably, 82.74 percent of the crimes were committed by acquaintances, and schools and online spaces have become high-incidence scenarios for such offenses.

"Last year I proposed that we are lacking locally developed sex education textbooks in China. As you can see, new textbooks have now been introduced, but we still have a shortage of professional teachers," Chen said. This year, her focus is on calling for the establishment of a dedicated program to train sex education teachers, stressing that "without professional teachers, the lessons never really begin."

At the basic education level, there are no full-time positions specifically for sexuality education teachers. Instead, classes are usually taught by teachers from other subjects — such as biology or moral education — on a temporary basis. Many of these teachers lack professional training, making it difficult to ensure the continuity and quality of sex education instruction, Chen explained.

Most of these part-time teachers have not received systematic academic training in sex education, leading to an uneven grasp of the subject. Additionally, sex education remains marginalized in the school curriculum. Due to the shortage of professional teachers, lessons rarely go beyond basic physiological knowledge, failing to meet the real developmental needs of children and adolescents, Chen noted.

Chen cited a UNESCO report titled International Technical Guidance on Sexuality Education: An Evidence-Informed Approach, which provides sound technical advice on the characteristics of effective comprehensive sexuality education (CSE) programs. The report requires teachers to transform from "knowledge lecturers to enablers," she added.

In detail, the NPC deputy put forward a series of specific recommendations. She suggested incorporating comprehensive sex education into the national basic education curriculum system, issuing guidelines for sex education curricula in primary and secondary schools, clarifying its positioning as part of quality-oriented education, and establishing a progressive framework for class hours and teaching content from kindergarten through high school. The curriculum, she emphasized, should cover comprehensive topics including relationships, gender equality, and rights protection.

At the university level, Chen called on institutions with adequate resources to offer minors or micro-programs in sex education to build a reserve of professional teachers. She also proposed establishing comprehensive sex education as a required or core elective course in relevant majors such as preschool education, primary education, and psychology.

Furthermore, the deputy mentioned the need to establish training systems and national certification pathways — including theoretical study, practical teaching, and supervisory evaluation — to effectively train sex education teachers and ensure their professional competence.

It is worth noting that China has already taken initial steps to promote sex education. In 2021, the State Council issued the Outline for the Development of Chinese Children (2021-2030), which stipulates that sex education will be incorporated into the basic education system and the quality monitoring system to enhance educational effectiveness. The outline also guides parents or other guardians to provide sex education based on the child's age and developmental stage, strengthen education on preventing sexual abuse, and improve children's awareness and capacity for self-protection.

Source:

Editor: Crystal H

200K-Follower Yoga Teacher Deported in Chengdu After Pay Dispute

Indian yoga teacher in Chengdu deported after pay dispute led employer to report him. He earned 180k RMB on business visa, fined 10k, banned. Institute also fined.

Tags:

Chengdu

Yoga Instructor

Illegal Employment

Pay Dispute

Deportation

Source: OT-Team(G), 成都市司法局

A collaboration between a Chengdu yoga training institute and a visiting Indian instructor ended in fines, deportation, and a bitter fallout.

On March 12, the Chengdu Municipal Bureau of Justice released details of the case. All names and organizations in the report are pseudonyms.

From Yoga Conference Encounter to Business Partnership

The story began in spring 2024 at an international yoga exchange conference in Chengdu. A, founder of a local yoga training institute, was impressed by a demonstration by Raj, an instructor from India.

When invited to join the institute, Raj explained that he had been unable to obtain a Chinese work visa due to issues with his documentation. A proposed a workaround: Raj could enter China using an M-class business visa arranged through a commercial invitation from the institute. Classes would be paid at RMB 600 per session.

According to A, the arrangement would fall under "cultural exchange" rather than formal employment—an approach she suggested was common practice as long as it avoided regulatory scrutiny.

The two reached a verbal agreement. Raj would enter China on an M visa with a six-month stay, renewable if needed. The institute would cover his living expenses in China, handle promotional materials, and pay him monthly based on teaching hours.

Rapid Popularity and Online Fame

Raj's classes quickly gained popularity. His teaching combined classical Hatha yoga with modern posture correction techniques, appealing to students seeking both philosophical depth and practical training.

Sensing an opportunity, A launched a series of workshops branded as "Master Classes from India," charging students RMB 398 per session. Demand remained strong.

The institute also invested in online promotion. Short videos featuring Raj—morning meditation sessions, demonstrations of advanced poses, and English-language explanations of yoga philosophy with Chinese subtitles—were posted across major Chinese social media platforms.

The clips went viral. Within a month, Raj's account grew from zero to more than 200,000 followers, with total topic views exceeding two million. Fitness brands began reaching out with potential endorsement offers.

Pay Dispute and Growing Tension

By this time, Raj had been working with the institute for about ten months. Despite his growing profile, his teaching fee remained unchanged at RMB 600 per session.

After one class, Raj approached A to renegotiate. Other institutions had privately contacted him offering up to RMB 1,500 per class. He requested the same rate.

A refused, offering only a modest increase to RMB 800 per class. Raj rejected the proposal, and the conversation ended abruptly.

In the following months, tensions surfaced in the classroom. Raj sometimes arrived late or left early, and students began to complain that the once-enthusiastic instructor seemed disengaged.

Three months later, Raj posted a cryptic message on social media: "True yoga practice unites body, mind, and value." The post included a dimly lit photo of a classroom corner. Online speculation quickly followed, with commenters wondering whether the instructor was being underpaid.

The Conflict Escalates

Angered by the post, A confronted Raj at his residence. During a heated argument, Raj expressed his intention to end the partnership. A refused and reportedly threatened to report him for illegal employment—warning that he could lose all earnings, face fines, and be deported.

After a long silence, Raj simply said he would stop teaching.

The next day, A submitted a report to the Chengdu Exit-Entry Administration. Police launched an investigation.

Authorities Find Illegal Employment

Investigators determined that between June 2024 and April 2025, Raj had stayed in China on an M-class business visa while teaching more than 300 classes and earning over RMB 180,000. Authorities concluded that the activity constituted illegal employment.

The yoga institute was also found to have knowingly hired a foreign national who lacked both a work permit and a work-type residence permit.

Under Articles 80 and 81 of China's Exit and Entry Administration Law, authorities imposed the following penalties:

1.Raj was fined RMB 10,000, ordered to leave China within 10 days, and placed on a list of individuals barred from re-entry.

2.The yoga institute was fined RMB 10,000, and all illegal gains from the unauthorized employment were confiscated.

A Final Message

Before departing China, Raj sent A a message from the airport:

"Yoga teaches balance, but neither of us achieved it."

A did not reply. Beyond the official penalties, she now faces refund demands from students, doubts from business partners, and criticism online accusing the institute of unethical practices.

Ironically, the instructor she once discovered and promoted to online fame ultimately left China through deportation proceedings triggered by her own report.

Legal Context

Legal experts note that visa and employment compliance remains one of the most common legal challenges faced by foreigners in China. The M-class business visa is intended for short-term commercial activities such as trade visits, exhibitions, or market research, and does not permit recipients to work or receive ongoing labor remuneration from Chinese entities.

Under Chinese law, foreigners may legally work in the country only after obtaining a work permit and a work-type residence permit, typically following entry with a Z-class visa. Engaging in paid labor without these approvals constitutes illegal employment.

Authorities warn that both individuals and employers can face fines, confiscation of illegal income, deportation, or entry bans if violations occur.