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When a Chinese Supplier Changes Delivery Terms After You Pay

JUDr. Jakub Dohnal, Ph.D., LL.M.
JUDr. Jakub Dohnal, Ph.D., LL.M.
Attorney|Czech Bar Association Reg. No. 14551
ARROWS law firm
Published:Updated:

You ordered goods under the agreed terms, paid a deposit or the full amount in good faith, but the Chinese supplier suddenly changes the rules of the game. Without your consent, they modify the delivery date, quality, minimum order quantity (MOQ), or price. In this article, you will learn what rights you have, how to proceed correctly from a legal perspective, and why prevention and expert support are crucial when doing business with China.

The photo shows law firm specialists focusing on changes to delivery terms by a Chinese supplier.

Key takeaways

Chinese suppliers can be compelled to perform under the original terms if you have a precisely drafted written contract and respond without delay.
A unilateral change to essential terms of the contract is invalid; however, in the Chinese business environment it is a common tactic.
The key is written documentation and formal legal steps, because the difference between successful enforcement and losing your investment often lies in the threat of real consequences.
ARROWS law firm
245 007 740consultation@arws.cz

When the rules change mid-game

Signals that the terms are about to change often come subtly. The supplier sends an email saying that due to the “current market situation” they cannot keep the original price and proposes an increase. Other times, the product’s technical specification changes on the grounds that the original material is unavailable, or the delivery date is pushed back (“delivery date”) without any offer of compensation.

It is crucial to understand that under Chinese contract law, as well as under international law, a unilateral change to agreed terms without the other party’s express consent is not legally binding.

However, law is one thing and enforceability is another. The Chinese legal system and business culture are specific. ARROWS, a Prague-based law firm, handles disputes with Chinese suppliers on a daily basis, and we know when it makes sense to push for performance and when it is economically more rational to minimise losses and withdraw from the contract.

When it constitutes a material breach of contract

From a legal perspective, it is necessary to distinguish between a non-material and a material breach of contract. The line lies in whether the change jeopardises the very purpose of the contract and whether it was duly agreed in the form of a written amendment.

The second, riskier category consists of changes announced as a fait accompli, often after you have already sent payment. The basic rule is: Silence does not mean consent, but in practice it may be interpreted as consent (by conduct) if you continue performance without اعتراض. In practice, it pays to have a clearly set process for objections and amendments, which we also address as part of the service contracts and negotiations.

Related questions on indicators of breach of contract

1. How can I reliably identify a change in terms?

Compare the final wording of the sales contract (Sales Contract) or the confirmed pro forma invoice (PI) with the current communication. Any deviation in price, Incoterms, goods specification, deadline, or quantity that has not been mutually approved in writing is an attempt to change the contract or a breach of it.

2. Can I defend myself even if I have already paid a deposit?

Yes, absolutely. Paying a deposit based on the original contract does not mean you accept subsequent unilateral changes. On the contrary, if the supplier changes the terms after receiving payment, they are unlawfully retaining your funds (unjust enrichment) or breaching the contract, which gives you a stronger mandate for enforcement.

3. What are the time limits for asserting rights?

In international trade with China, speed is key. Typical weak points include the wording of contractual mechanisms for price changes; see our analysis of inflation clauses in contracts for work. Under the Civil Code of the PRC, the limitation period for contracts for the international sale of goods is four years. Note that this period runs from the moment you learned or should have learned of the breach. In practice, we recommend responding (notifying the discrepancy) immediately, no later than within 14 days.
ARROWS law firm
245 007 740consultation@arws.cz

Legal framework and contract content

A high-quality sales contract is the best prevention. Relying only on a pro forma invoice or an email order is a gamble with Chinese partners. The Vienna Convention on Contracts for the International Sale of Goods (CISG) is often automatically applied to relationships between Czech and Chinese entities.

However, for effective enforceability directly in China, experts often recommend choosing Chinese law and resolving disputes through arbitration.

Why? A judgment of a Czech court is practically unenforceable in China, as there is no bilateral treaty on mutual recognition of court decisions in commercial matters. By contrast, an arbitral award is enforceable in more than 170 countries worldwide, including China and the Czech Republic, thanks to the 1958 New York Convention. ARROWS, a Prague-based law firm, routinely reviews and prepares bilingual (EN/CN or CZ/CN) contracts that include a valid arbitration clause.

Differences in interpretation: Czech Republic vs. China

Civil law (Czech Republic) emphasises literal interpretation and statutory provisions. Chinese law and judicial practice also take into account context, the history of the relationship, and the principle of “good faith and trust”. If the contract is not precise, a Chinese court or arbitrator may consider what is “customary” or “fair” to maintain stability.

The language clause is essential. If you have a bilingual contract, you must explicitly state which version prevails in the event of a discrepancy. If you do not, Chinese authorities will almost always prefer the Chinese version.

Related questions on the legal framework

1. Which language version prevails?

Unless the contract states otherwise (“Prevailing Language Clause”), in a dispute in China the Chinese language will prevail. European companies often sign a Chinese version they have not had reviewed and rely on the English text. Similar mistakes (including language versions and governing law) recur in other jurisdictions as well, as shown by the article how Czech companies enter into contracts with partners from Italy: risks that keep recurring. This is a fatal mistake, as the Chinese text may contain different terms.

2. Can the contract be amended orally (WeChat, phone)?

Theoretically yes, but the burden of proof is on you. Chinese practice and contracts prepared by our Prague-based legal team strictly require written form for amendments (including electronic communication, but it must be clearly identifiable). Beware of informal confirmation on WeChat (“OK”), which may be construed as consent.

3. What if I do not object to the change?

Passivity is risky. If the supplier announces a price change and you accept the goods or pay the balance without protest, the contract has effectively been amended by conduct. You can no longer rely on the original price retroactively.
ARROWS law firm
245 007 740consultation@arws.cz

How to respond to a change in terms

Imagine the situation: You have a signed contract for 5,000 units at a price of USD 2/unit. Before shipment, a message arrives: “The price is now USD 2.40 and we will deliver it one month later.”

Analysis and securing evidence

Before you respond, establish the facts. Who sent the change? Is it the statutory representative (Legal Representative) or just a rank-and-file sales person? Do you have a valid contract? Does it contain a price-fixation clause or a force majeure clause (Force Majeure)?

Request an official written statement bearing the company seal (the so-called “red chop”). The Chinese company seal is crucial— a signature can be disputed, but the red round seal is a binding act of the company in China.

Immediately send a formal rejection of the change. An email is the minimum; a registered letter or a message via a data box is better. The content must include a reference to the original contract number, a clear rejection of the proposed changes, and a demand for performance under the original terms.

This is where ARROWS, a Prague-based law firm, comes into play. Sending a so-called “Lawyer’s Letter” (attorney demand letter) in Chinese, on a law firm letterhead, has a significantly stronger psychological and legal effect in China than dozens of emails from your buyer. The supplier will understand that you are prepared to resolve the situation through legal channels.

Negotiation and a possible amendment

If the supplier backs down only partially or the change is objectively necessary (e.g., government intervention), you must address the situation contractually. Never pay the increased price without a written contract amendment that clearly defines it as a one-off exception and ideally includes compensation.

Change of commercial terms

Risk

ARROWS solution (consultation@arws.cz)

Absence of an enforceable contract (only a pro forma invoice).

Contract review and drafting: We will prepare a robust bilingual contract with an arbitration clause and clear penalties.

Delay and inaction (loss of evidence and time).

Immediate legal intervention: We will take over communications, send a formal demand (Lawyer's Letter), and interrupt limitation periods.

Implied acceptance of the change (paying a higher price without an amendment).

Strategic advice: We will advise how to word payments (e.g., “under protest”) and how to preserve your claim for a refund of the overpayment.
ARROWS law firm
245 007 740consultation@arws.cz

Enforcement: When an amicable solution fails

If the supplier refuses to deliver the goods under the original terms and withholds the advance payment, you have the following options:

Pre-action demand (Lawyer's Letter)

In the Chinese environment referred to as Lüshi Han. This is a formal document prepared by a Chinese or international lawyer warning of court or arbitration proceedings and their costs. The success rate of this “soft” method is surprisingly high because Chinese companies fear reputational damage and a loss of “social credit”.

Mediation and arbitration

China prefers out-of-court resolution. If the contract contains an arbitration clause, the claim is filed with the relevant institution (e.g., CIETAC, SHIAC in Shanghai, or HKIAC in Hong Kong). Arbitration is faster than court proceedings, non-public, and arbitrators are specialists in international trade.

Court proceedings are an alternative if you do not have an arbitration clause. Jurisdiction is usually the court at the supplier’s registered office (PRC). This route is cheaper in terms of court fees, but it may take longer, is public, and requires complex legalization of all evidence from abroad.

Criminal complaint (as a last resort)

If the supplier took the money and disappeared or never intended to deliver the goods (fraud), this constitutes a criminal offence. In such a case, we assist with filing a report with the Chinese police (PSB - Public Security Bureau). Police pressure is often the only way to recover money from fraudsters.

Specifics of evidence in China

Chinese courts and arbitrations require a high standard of proof. Emails must be verified (notarized); a simple printout of an email may not be sufficient. For WeChat messages, it is necessary to prove the chain of the user’s identity. Always keep originals of documents with a “wet” signature and a red seal.

Related questions on arbitration

1. How much does arbitration in China cost?

Costs consist of the institution’s fee (e.g., at CIETAC calculated as a percentage of the amount in dispute, approximately 3–5% for mid-sized disputes) and the fees of legal representatives. The total investment for a standard dispute is typically in the range of several thousand to tens of thousands of USD/EUR. The cost-benefit ratio must be considered.

2. Is there a chance of winning against a Chinese company?

Yes. In international arbitration institutions (CIETAC, HKIAC), decision-making is relatively impartial. Statistics show that foreign companies win in roughly 50–60% of cases if they have a legally substantiated claim and strong evidence.
ARROWS law firm
245 007 740consultation@arws.cz

Conclusion

A change of commercial terms by a Chinese partner is a test of your preparedness. If you show weakness or lack of legal knowledge, you will lose. However, if you respond professionally, rely on a valid contract, and involve legal authority, your chances of receiving the goods or recovering your money increase dramatically.

ARROWS, a Prague-based law firm, provides comprehensive legal services for trade with China—from partner due diligence, through drafting watertight contracts, to dispute resolution and arbitration. Do you have an issue with a Chinese supplier? Do not wait until deadlines expire. Contact us at consultation@arws.cz for a non-binding assessment of your case.

FAQ – Frequently asked questions

1. Do I have to have a contract in Chinese?

It is not a legal requirement, but it is highly recommended (so-called “best practice”). A Chinese-language contract eliminates translation errors in a dispute and is immediately understandable to a Chinese judge/arbitrator.

2. What is the limitation period for an international sale of goods in China?

Under Article 594 of the Civil Code of the PRC (Civil Code of the PRC), the limitation period for disputes arising from international sales contracts is four years.

3. Is an email agreement valid in China?

The Civil Code of the PRC recognizes electronic form (including email and chat applications) as written form. The issue, however, is proving authenticity and the sender’s identity. Therefore, we recommend confirming key changes by a sealed document (PDF scan).

4. What is a “Red Chop”?

It is an official company seal (red, round, often with a star). Under Chinese law, the seal carries more weight than the managing director’s signature. A contract without this seal may, in some cases, be considered invalid or ineffective.

DO YOU HAVE MORE QUESTIONS? GET IN TOUCH

ARROWS law firm
245 007 740consultation@arws.cz

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About the author

JUDr. Jakub Dohnal, Ph.D., LL.M.
JUDr. Jakub Dohnal, Ph.D., LL.M.

Associate, managing partner

LinkedIn|Czech Bar Association Reg. No. 14551
Jakub Dohnal is a founding member of our law firm and our entire consulting group. He is primarily involved in real estate development and advising on the complex setup of commercial projects.
dohnal@arws.cz245 007 742

Disclaimer:

The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (consultation@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.