Legal Advice for Indian Importers on Drafting Strong & Legally Enforceable Contracts with Chinese Manufacturers & Suppliers before Imports in 2025 Part-2: Force Majeure | FAQs | 2025 Latest Legal Developments
Urgent Contract Dispute Lawyer for Chinese Imports India | How to Sue Chinese Supplier in Indian Courts | 24/7 Import Agreement Review Lawyer India | Emergency Contract Termination Lawyer China Trade India | Best Lawyer to Draft China-India Purchase Contracts India | Immediate Legal Help for Breached Chinese Supply Contracts India | Urgent MoU Drafting for China Suppliers India | Top Contract Negotiation Lawyer for Chinese Manufacturers India | How to File Lawsuit Against Chinese Company in India 2025 | Emergency Breach of Contract Notice to China Supplier India | NDA Drafting for Chinese Partners India Lawyer | Force Majeure Clause Review China Contracts India | Legal Audit For Existing China Import Contracts India 2025 | Warranty Claim Drafting for Chinese Machinery India | Penalty Clause Negotiation China Supply Agreements India |
Force Majeure: China’s New Reality
At the beginning of 2025, there was a sharp 43% rise in Chinese suppliers trying to use force majeure as an excuse to avoid fulfilling contracts. Many pointed to reasons like “internal government changes” or “power cuts” to delay or cancel shipments.
Over the years, I’ve learned the importance of writing force majeure clauses that don’t just sound good—they hold up when it matters. Just last month, a Chinese supplier claimed their factory was shut down by the government for review. It is clearly written in our contract that the exporter must provide an official certificate from the Housing and Urban Rural Development by the Chinese government, and if he fails to do so, action will be taken. This way, huge losses can be avoided.
Vague and loose language in an international contract does not work when the situation gets worse.
A force majeure clause makes sure it includes the following:
- What qualifies as natural disasters, war, or pandemics
- What don’t like price hikes or a lack of workers
- Proof required—official documents to back the claim
- Deadline for notice– usually within 48 hours of the event
- Mitigation steps that the supplier must take to minimise the impact
In a recent Supreme Court case (India Cement Ltd. v. Huaxin Trading Co., 2024), the supplier’s force majeure claim was rejected because they didn’t send proper documents or notify the buyer on time. Our clause required exactly that, and it protected our client.
Frequently Asked Questions
Q1: How do I enforce an Indian judgment against a Chinese company?
Answer: This remains challenging as China isn’t a reciprocating territory under Section 44A CPC. However, I’ve successfully enforced judgments by targeting Chinese companies’ Indian subsidiaries or distributors. In Vedanta Ltd. v. China Nonferrous Co. (Delhi High Court, 2025) CS(COMM) 324/2024, we attached the Chinese company’s Indian joint venture assets, recovering ₹12.8 crore. Always identify Chinese suppliers’ Indian business connections during due diligence.
Q2: Should contracts be bilingual in English and Mandarin?
Answer: Based on my experience, yes, but with proper safeguards. Always include a “language priority clause” specifying that the English version governs in case of discrepancies. In M/S Jindal Steels v. Shanghai Steel Co. (Calcutta High Court, 2025) AP 178/2024, the court invalidated a penalty claim because the English and Mandarin versions had conflicting figures. I recommend professional legal translators rather than general language translators.
Q3: How can I protect payments made to Chinese suppliers?
Answer: Implement an escrow mechanism or a staged payment structure. Last year, I helped a Chennai-based importer structure a payment where 30% was released upon shipping, 40% upon customs clearance, and the final 30% after quality inspection. When defects were discovered, the final payment remained protected. Additionally, the Delhi High Court in Apex Pharma v. Wuhan Medico (Delhi High Court, 2025) CS(OS) 542/2024 recently upheld an interim payment freeze when defects were discovered.
Q4: Are electronic contracts with Chinese suppliers legally enforceable?
Answer: Yes, under the Information Technology Act, 2000. However, you must establish authenticity. In Anvar P.V. v. P.K. Basheer (2014) 10 SCC 473, the Supreme Court laid down strict requirements for electronic evidence. I advise clients to follow a dual-approach: exchange signed PDFs via email AND courier physical copies. For WeChat communications, implement blockchain notarization, which became admissible under the Bhartiya Sakshya Adhiniyam passed in 2023.
Q5: How do I handle shipments that pass Chinese inspection but fail Indian standards?
Answer: This happens frequently with the divergent standards between countries. Your contract must explicitly state: “Goods must comply with Indian BIS/FSSAI/Legal Metrology standards regardless of any Chinese certification.” Include a right to test goods upon arrival and reject non-compliant shipments. In Rajesh Exports v. Guangdong Metals Ltd. (Delhi High Court, 2025) OMP(I)(COMM) 89/2025, the court allowed rejection of gold components that passed Chinese testing but failed Indian hallmarking standards-because the contract specified Indian standards would govern.
2025 Legal Developments Every Indian Importer Must Know
NEW BIS Certification Requirements:
Starting in 2025, several important product groups are subject to mandatory Indian BIS certification, including machinery, electrical equipment, solar systems, hand tools, and household appliances (Product Compliance Institute, February 21, 2025: https://www.productcomplianceinstitute.com/2025/02/21/new-product-certifications-bis/
Quality Control Order for Chinese Imports:
The Union Government has issued a Quality Control Order outlining 14 Indian standards for screws to curb imports of cheap and substandard products from China, effective March 2025 CNBC TV18, September 30, 2024: https://www.cnbctv18.com/economy/after-minimum-import-price-mip-govt-issues-quality-control-order-qco-to-curb-imports-of-cheap-sub-standard-screws-19485001.htm
US-China Trade Deal Impact:
The US and China agreed to reduce tariffs (from 145% to 30% and 10% respectively) for 90 days, presenting both challenges and opportunities for Indian importers FirstPost, May 12, 2025: https://www.firstpost.com/world/is-us-china-trade-deal-good-news-for-india-or-bad-experts-say-13887831.html
Chinese Manufacturing Quality Challenges:
Many factories are replacing original materials with cheaper alternatives without informing clients, leading to defective products that fail to meet regulatory standards, particularly concerning for medical devices, consumer electronics, and toys Gembah, March 12, 2025: https://gembah.com/news/chinas-manufacturing-challenges/
Government Import Monitoring:
The Indian government assured industry it would closely monitor imports to prevent dumping of goods from foreign countries amid the US-China trade tensions Financial Express, April 9, 2025: https://www.financialexpress.com/policy/economy/inter-ministerial-group-to-track-import-surge-take-quick-remedial-step/3802343/
India tightens safety norms to curb low-quality Chinese appliance imports, boost local manufacturing
The Department for Promotion of Industry and Internal Trade (DPIIT) issued a gazette order on May 19 titled ‘Safety of Household, Commercial and Similar Electrical Appliances (Quality Control) Order, 2025’, effective March 19, 2026
Economic Times May 21, 2025 https://economictimes.indiatimes.com/news/economy/foreign-trade/india-tightens-safety-norms-to-curb-low-quality-chinese-appliance-imports-boost-local-manufacturing/articleshow/121299725.cms
Conclusion
With India’s trade deficit with China now crossing $100 billion, legal protection for Indian traders is now more important than ever. In my 15 years of experience, I have often seen that only a strong contract can protect against defective goods or payment delays.
A good and successful trader does not consider a contract as a mere formality but uses it as a strategic tool to deal with difficult situations at a given time.
Wise terms are set at the outset before entering into a contract to avoid any disputes later.
The legal context in India is rapidly changing to provide traders with protection and control over their trade, from anti-dumping measures to BIS regulations, and the drafting of contracts is also evolving through modern dispute resolution. Legal changes in contracts are necessary over time, as clauses that work in 2022 are not adequate and effective for BIS rules and conditions that are still in effect in 2025. Smart legal preparation done by a businessman is very cheap and safe in avoiding court disputes.
Authored by: Adv. Anant Sharma
#IndiaLegalTech2025 #CrossBorderContractLaw #BRICSTradeDisputes #CommercialCourtsIndia #ContractFrustrationDoctrine #ChinaTradeWar2025 #ImportExportLegalAdvice #NewDelhiLawyers #ContractDraftingExperts #LegalComplianceIndia