Debt Collections Handbook China 2019

Debt Collection Handbook

  • China
  • Agriculture,
  • Automotive/Transport,
  • Chemicals/Pharma,
  • Construction,
  • Consumer Durables,
  • Electronics/ICT,
  • Financial Services,
  • Food,
  • General economic ,
  • Machines/Engineering,
  • Metals,
  • Paper,
  • Services,
  • Steel,
  • Textiles

9th September 2019

Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collections Handbook explains the different regulations and procedures for debt collections in China.

Amicable collections

General information

Handbook Report Page - Amicable Phase




China has had a vivid history around debt collection. It was prohibited by the Chinese government in the late 19th century and is still prohibited by law today. Therefore, debt collection officially does not exist, but there are companies who provide debt collection services through specialised legal firms that are authorised to collect Chinese debts. China has shown more interest in outsourcing their outstanding receivables to debt collection agencies and law offices. Atradius Collections collaborates with local law firms to provide amicable and legal collection services in China. Our team has experienced collectors with legal backgrounds, which are essential for collecting debts in China.


From a cultural point of view, Chinese debtors are not used to paying late payment interest charges. So during the first steps of the negotiation, we usually do not claim this part. When the case enters into litigation, we charge interest calculated from the loan rate set by the People’s Bank of China, plus 30% to 50% (the Reply of Supreme People’s Court on the Calculation Standard of Late Payment Penalty).

Debt collection costs

From the point of view of Chinese law, Atradius Collections has the right to charge the costs arising from the collection of debts, but Chinese debtors will not expect to pay them if the debts are paid in the negotiation phase.

The Debt Collections Handbook presents a snapshot of China's economic situation and covers the following topics:

  • Accepted and most common payment methods
  • Types of companies
  • Legal procedures and legal system
  • Enforcement in debt, movable and immovable property
  • Insolvency proceedings

To read more about steps and procedures undertaken in debt collections in China and other countries:


The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.