Chengdu is a relevant commercial location for international buyers sourcing from China. Chengdu is a major industrial and technology center in western China with diversified manufacturing capabilities. A dispute involving a supplier in this market should be considered in light of both the contractual relationship and the practical characteristics of the local supply chain.
Why is fraud so difficult to establish under Chinese law? Attorney Qiang Lyu often receives inquiries from clients saying, “Attorney Lyu, I’ve been scammed. I shipped the goods but received no payment, or I paid in full but got no delivery. This is fraud, and I want you to help me report it to the police to pursue criminal liability.”
In such situations, I always tell my clients directly: fraud is not as easy to prove as you might think. To establish a criminal fraud offense, at least three key elements must be met:
The offender fabricated facts or materially concealed the truth.
The offender possessed the intent to defraud from the very beginning.
If the offender defrauded three or more victims, it is more likely to be recognized as fraud.
In legal practice, most fraud reports submitted to the public security authorities are not accepted as criminal cases. Instead, the police will issue a written notice advising the victim to file a civil lawsuit in court.
Just put yourself in their position: If every dispute over non-payment for goods or non-delivery after payment were treated as criminal fraud, there would be no need for civil courts at all.
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Local Supply Chain Risks in Chengdu
International buyers dealing with Chengdu companies may be sourcing products or services connected with electronics, machinery, automotive and advanced manufacturing. Typical issues may include technical specification disputes, quality claims, delivery delays and contract performance disputes. For electronics, machinery and advanced-manufacturing transactions, buyers should pay particular attention to technical specifications, acceptance evidence, delivery obligations, warranty terms and the identity of the entity that signed the contract.
Chengdu is located in Sichuan and is supported by a major western China industrial and technology ecosystem. For cross-border transactions, this background can be useful when assessing supplier verification, contract enforcement and dispute-resolution options.
Resolving a Supplier Dispute in Chengdu
Where a commercial dispute has developed, an overseas buyer should avoid relying solely on informal communications. Reviewing the contract, identifying the correct legal entity, preserving documentary evidence and assessing the available dispute-resolution mechanism are usually important before deciding how to proceed.
The appropriate legal strategy depends on the specific transaction, the supplier’s conduct, the evidence available and the applicable legal framework.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Laws and legal procedures may vary depending on the specific facts and applicable jurisdiction. No lawyer-client relationship is created by reading this article or contacting us through this website. For advice regarding a specific matter, please consult a qualified lawyer after a formal engagement has been established.
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Qiang Lyu
His practice also includes China company law, intellectual property matters, and commercial contract disputes involving foreign-invested businesses and cross-border commercial activities.