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Supplier Dispute in Guangdong? A China Lawyer for Overseas Buyers

I am a PRC-licensed lawyer in Xiamen. I act for overseas buyers who deal with Chinese suppliers. This page is for buyers whose supplier is in Guangdong province. It covers where the factories are, which court or arbitration body hears a claim, and how long the first steps take.

This page does not suggest that Guangdong suppliers cause more disputes than suppliers elsewhere. If something goes wrong with a supplier here, you need to know which local court to use and how it works.

Where Guangdong's suppliers are

Guangdong's export manufacturing is concentrated in the Pearl River Delta. Each city has its own industries.

Main supplier cities in the Pearl River DeltaMap of Guangzhou, Shenzhen, Foshan, Dongguan, Zhongshan and Zhuhai with their main industries.50 kmGuangzhouFoshanceramics, furnitureDongguantoys, furniture, shoesShenzhenelectronicsZhongshanlightingZhuhaiappliances, IT
Main supplier cities in the Pearl River Delta. Positions are approximate.

Main industries by city

  • Shenzhen. Its electronic-information manufacturing output was RMB 2.48 trillion in 2022, about one-sixth of China's total. Shenzhen Port handled a record 35.41 million TEU (standard containers) in 2025.
  • Guangzhou. The city government describes the Zhongda textile district in Haizhu as the world's largest trading hub for fabrics and trims. It has 61 wholesale markets and about 16,000 merchants. Guangzhou Port handled 27.68 million TEU in 2025, mainly through Nansha.
  • Foshan. It ranks in China's top tier for home appliances, furniture, building ceramics, sanitary ware and aluminium profiles. Nanzhuang in Chancheng carries the title China ceramics trade capital and is now mainly a trade and headquarters hub. Lecong in Shunde has the world's largest furniture market, and Longjiang nearby makes furniture.
  • Dongguan. It is the only city with the title China Trendy-Toy Capital. The city says about 85% of China's trendy and collectible toys are made there. Houjie town has more than 700 furniture companies and more than 5,200 shoe businesses.
  • Zhongshan. Guzhen town is known as the China Lighting Capital. Its government says Guzhen lighting holds over 70% of China's market.
  • Zhuhai. Its pillar industries include next-generation IT, smart home appliances and high-end equipment.

Which court hears your claim

A Chinese court can hear your claim against a supplier based in China. Under Chinese law, a contract claim goes to the court where the defendant is based or where the contract was performed (Civil Procedure Law (in Chinese) art. 24). A court you and the supplier chose in writing can also hear it (art. 277).

Your case is "foreign-related" if you are a foreign company or are based outside mainland China. Hong Kong, Macao and Taiwan parties are treated the same way. Since 2023, a foreign-related claim under RMB 40 million usually starts in a basic-level court (SPC Provisions on Foreign-Related Jurisdiction, art. 1). In 2023 the Guangdong High Court named particular courts for Shenzhen, Guangzhou and Zhuhai. Courts were still following that arrangement in 2024 and 2026. For the rules across China, see which Chinese court hears your claim.

Where the supplier isFirst-instance court for claims below the limit
Shenzhen, any districtShenzhen Qianhai Cooperation Zone People's Court (commercial claims under RMB 50 million)
Guangzhou: Yuexiu, Haizhu, Liwan, Baiyun, Huadu, ConghuaYuexiu District People's Court (commercial claims under RMB 40 million)
Guangzhou: Nansha, Tianhe, Huangpu, Panyu, ZengchengNansha District People's Court (commercial claims under RMB 40 million)
Zhuhai, any districtHengqin Guangdong-Macao In-Depth Cooperation Zone People's Court (claims under RMB 40 million)
Foshan, Dongguan, Zhongshan and other citiesThe supplier's local basic-level court (claims under RMB 40 million)

Larger claims

Claims at or above the limit go to the city's intermediate court.

Guangzhou's two named courts

In Guangzhou, the Yuexiu and Nansha courts take four types of commercial case, including contract disputes. Other foreign-related cases there go to the ordinary district court.

International Commercial Court

The Supreme People's Court's First International Commercial Court also sits in Shenzhen. It hears an international commercial case only if the parties chose the Supreme People's Court and the claim is RMB 300 million or more.

Before I file

I confirm the court with its case-filing office. A case filed in the wrong court has to be sent on, and that costs time.

To find the first-instance court, answer three questions.

  1. Does the contract have a valid arbitration clause? If yes, the case goes to arbitration. If no, go to step 2.
  2. Is the claim at or above the limit? The limit is RMB 50 million for commercial claims in Shenzhen and RMB 40 million elsewhere. If yes, the case goes to the city's intermediate court. If no, go to step 3.
  3. Where is the supplier, or where was the contract performed? Find the court in the table above. Then confirm it with the court's case-filing office.

Court or arbitration

If your contract names arbitration

Many export contracts send disputes to arbitration. Arbitration is a private hearing before arbitrators instead of judges. If your contract has a valid arbitration clause, a Chinese court will not hear the claim, unless the other side fails to raise the clause before the first hearing.

Shenzhen Court of International Arbitration

The Shenzhen Court of International Arbitration (SCIA) is set up under its own Shenzhen regulation. It also uses the names South China International Economic and Trade Arbitration Commission and Shenzhen Arbitration Commission. I have handled cases there.

An award you won abroad

If you already won an arbitration award abroad, a Guangdong court can enforce it against the supplier. China is a party to the New York Convention, the treaty on enforcing foreign arbitration awards. See enforcing a foreign award against a Chinese supplier.

How long the first steps take

These are typical times from my practice. They are not promises.

Finding the supplier's other assets is a job for the enforcement stage, after judgment. If the factory's property is already mortgaged to a bank, enforcement is harder. More on freezing a supplier's account.

Problems that come up, here and elsewhere

These problems arise with suppliers anywhere in China. What changes in Guangdong is which local court and which local steps apply.

How I work in Guangdong

On the ground

I am based in Xiamen and travel to Guangdong in person. I visit factories in Shenzhen, Guangzhou, Foshan, Dongguan, Zhongshan and Zhuhai.

Cases I have handled

I have handled cases before the Nanshan and Qianhai courts in Shenzhen and before the Shenzhen Court of International Arbitration. I have handled 74 supplier-dispute lawsuits and 136 trademark lawsuits.

Fees

My fees in Guangdong are the same as on this website. Travel costs are charged at actual cost. See fees and process.

Questions from overseas buyers

Which court hears a claim against a supplier in Shenzhen?

For a foreign buyer's commercial claim under RMB 50 million, the Shenzhen Qianhai Cooperation Zone People's Court hears it. That applies wherever in Shenzhen the supplier is. Larger claims go to the Shenzhen Intermediate Court. A valid arbitration clause sends the case to arbitration instead.

Which court hears a claim against a supplier in Foshan or Dongguan?

For a claim under RMB 40 million, the supplier's local basic-level court hears it. Claims of RMB 40 million or more go to the Foshan or Dongguan Intermediate Court. Confirm the court with its case-filing office before filing.

Is there a special court for goods shipped by sea from Shenzhen or Guangzhou?

Yes. A dispute about carriage of goods by sea is a maritime case, and in Guangdong it goes to the Guangzhou Maritime Court. A claim against the supplier under the sales contract still follows the ordinary rules above.

Can my contract choose a court outside Guangdong?

Yes. In a foreign-related case, you and the supplier can choose a Chinese court in writing (Civil Procedure Law art. 277). Without a valid choice, a contract claim goes to the court where the supplier is based or where the contract was performed.

Sources

Official texts cited in this article.


Supplier problem in Guangdong?

Send a short summary and the supplier's Chinese company name. Once I've checked that I don't act for the other side, I'll ask for the contract or order, the payment record and the last message from the supplier. I will tell you where you stand and what your options are. Discuss your supplier dispute →


General information about Guangdong courts and arbitration. It is not advice on a particular matter. Court designations: Guangdong High Court approval Yue Gao Fa [2023] No. 11 (for cases accepted from 1 January 2023) and its Q&A of 25 December 2024; SPC Provisions on Foreign-Related Jurisdiction (Fa Shi [2022] No. 18), arts. 1 and 2. Industry and port facts from the city governments and the Ministry of Transport, checked in October 2026. Translations are mine and unofficial. Check the originals before relying on them.

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