What should you do when you Chinese supplier told you his bank account was frozen?
Recently, many foreign buyers and Chinese suppliers have consulted the Landing (Shenzhen) Law Office to solve their problem: they have received payment in RMB but after that, their bank accounts have been frozen, what should they do?
In the practice, a common situation is that the foreign buyers do not pay the goods to the Chinese suppliers through their company account. Instead, they directly transfer the payment in RMB to the Chinese supplier account through the third parties’ account. This way may reduce some monetary losses on the currency exchange for foreign buyers, yet there is a risk that this payment method may lead to frozen accounts of both Chinese suppliers and third parties. It can cause unnecessary trade disputes and affect business.
Lawyer Larry Zhou’s team at Landing (Shenzhen) Law Office kindly reminds you that such risk exists. The Public Security Authority of China has focused on cracking down money laundering, fraud, and other criminal activities. If there is somebody us