Unpaid Commissions in China: Key Takeaways and Proactive Strategies for Foreign Trade Agents
- Lanxin Zhao
- 4月19日
- 讀畢需時 3 分鐘
Foreign trade agents play a crucial role in international business, connecting buyers and suppliers while ensuring smooth transactions. However, commission disputes with Chinese companies remain a persistent challenge. To protect their earnings, agents must take proactive steps and be prepared to enforce their rights through legal means when necessary. This final article in our series summarizes key takeaways, best practices, and how our expertise can help agents secure their rightful commissions.
Key Takeaways for Foreign Trade Agents
From our discussions on commission disputes, several important lessons emerge:
• Written Agreements Are Essential – A well-drafted contract specifying commission terms, payment schedules, and dispute resolution methods significantly strengthens an agent’s legal position.
• Litigation Can Be a Strategic Move – Filing a lawsuit is not just about winning a court case; it is a powerful negotiation tool that can pressure companies to settle.
• Court Mediation Is Effective – The Chinese legal system strongly encourages mediation, which can lead to quicker and enforceable settlements.
• Enforcement Matters – Even after winning a case, agents must ensure the ruling is enforced, often requiring additional legal measures like asset freezes.
Proactive Steps to Minimize Commission Disputes
While legal remedies are available, the best strategy is to prevent disputes before they arise. Agents can take the following proactive steps:
1. Use Clear and Legally Sound Contracts
• Specify the commission rate, payment terms, and timing.
• Include a dispute resolution clause (litigation or arbitration).
• Ensure both parties sign and keep proper documentation.
2. Keep Detailed Records of Transactions
• Save emails, WeChat messages, and any correspondence confirming the deal.
• Maintain invoices, purchase orders, and proof of introductions.
3. Choose the Right Business Partners
• Conduct background checks on Chinese companies before engaging in business.
• Verify their reputation, financial stability, and past dealings.
4. Seek Legal Advice Early
• If a company delays or refuses payment, consulting a lawyer early can prevent further losses.
• A formal demand letter from a legal professional can often prompt payment without court action.
Our Expertise in Handling Commission Disputes
With extensive experience in cross-border trade disputes, we have successfully helped foreign agents recover unpaid commissions through negotiation, litigation, and arbitration. Our approach is tailored to each client’s specific circumstances, ensuring the most efficient and cost-effective resolution.
Tailored Legal Strategies Based on the Case
• For agents with strong contracts – We pursue swift enforcement through the courts or arbitration.
• For agents with verbal or informal agreements – We use industry practices and supporting evidence to build a compelling case.
• For cases requiring urgent action – We apply for asset preservation measures to prevent companies from evading payment.
How to Contact Us for Legal Assistance
If you are facing an unpaid commission dispute, our team can provide:
✔ Legal consultation to assess your case and recommend the best approach.
✔ Contract drafting and review to strengthen your agreements.
✔ Negotiation and mediation to seek a quick resolution.
✔ Litigation and arbitration representation to secure and enforce payments.
Recovering your commission does not have to be a long and frustrating process. With the right strategy and legal support, you can protect your rights and ensure fair payment for your work. Contact us today to discuss how we can assist you.
Catalogue of articles in the series
5.Unpaid Commissions in China: Key Takeaways and Proactive Strategies for Foreign Trade Agents
Lanxin Zhao
License No.: 13201202311636051
About the Author:
With a deep understanding of the intricacies of the Chinese legal system, Lanxin has helped numerous clients navigate complex legal disputes. T
he author studied law in the UK before returning to China to practice in the field of international trade and dispute resolution. This experience equipped her with language skills and extensive legal knowledge, enabling her to provide clear, practical advice to those seeking a fair resolution in China.
Contact: zlxlawyer@bjcelue.com or WhatsApp +86 18362959702
