Many entrepreneurs are worried about recovering their credits against debtors located in China. There are many reasons behind this concern, from the geographical, cultural, linguistic and juridical distance and the fear to cope with very high fees of an international law firm.
First of all the saying “prevention is better than a cure” is something really perfect in this field. When there is a business with a so far away, complex and vast country such as China the best option is to engage a professional. He will be able to protect the creditor at the origins with every possible means to be evaluated on a case-by-case basis and making the credit collection more effective.
Credit collection in China is a delicate matter but not impossible. First, it is important to underline that China has a different legal system from Hong Kong and Macao. The credit collection is possible in all these three jurisdictions but they are not the same.
The professional will evaluate many elements such as the credit type and importance, the typology of debtor, private or public owned company, where the debtor is in the different regions of China. Once evaluated these elements the professional will chose the more effective way starting from an out of court activity.
The debtor located in China perfectly knows all the above mentioned elements such as distance, linguistic difficulties etc. etc. These kind of difficulties can be avoided with professionals able to operate directly there. This element is able to make the threat of an effective credit collection real as the creditor shows to be able to act directly in China.
If you need any further information about credit collection or about how to make business in China, Hong Kong and Macao do not hesitate to contact us.