A buyer who is unhappy with a product may sue the seller for a refund, a replacement, or damages. For the seller, the claim often feels like an attack on the product's reputation, but Chinese law gives the seller a clear set of rights and a structured path to defend. The Civil Code of the People's Republic of China (2021) requires the seller to deliver goods that conform to the quality agreed in the contract, but it also protects the seller where the alleged defect is not the seller's fault, for example where the product was misused by the buyer or the defect originates with the manufacturer.
This article sets out a practical response for sellers facing a product quality claim in China: verify the facts, preserve the evidence, negotiate where possible, and, if litigation follows, defend with a well-prepared case that allocates responsibility correctly.
The Seller's Quality Obligation Under the Civil Code
The starting point is the seller's duty of quality. The Civil Code of the People's Republic of China (2021), Article 615, provides that the seller shall deliver the subject matter in conformity with the quality requirements agreed in the contract, and Article 617 provides that where the delivered subject matter fails to meet the quality requirements, the buyer may claim liability for breach in accordance with the provisions of Chapter 8 of the Civil Code. The seller's exposure is therefore real and direct: a defect in the goods is presumptively the seller's responsibility.
Where the delivered subject matter does not conform to the quality requirements, the buyer may require the seller to bear liability for breach of contract in accordance with the provisions of this Chapter.
Civil Code of the People's Republic of China (2021), Article 617
The burden, however, is not absolute. The seller is responsible for defects that exist in the goods at the time of delivery. Where the defect arises from the buyer's own conduct, such as improper installation, misuse, or failure to follow operating instructions, the seller can defeat the claim by proving the true cause. The practical question in every dispute is therefore: what exactly caused the problem, and what does the evidence show?
Immediate Steps: Verification and Evidence Preservation
When a claim arrives, the first hours matter. The seller should immediately collect the documents that prove the product's origin and quality: purchase records for the goods, inspection reports, certificates of conformity, and quality certificates from the manufacturer. At the same time, the seller should identify the actual source of the problem by contacting the manufacturer if the defect may originate there, and by checking the buyer's usage history.
The seller should also preserve the disputed product itself, together with its packaging and instructions. Where the cause is genuinely unclear, a third-party quality inspection commissioned jointly, or at least with notice to the buyer, creates an objective record that the court can rely on. The seller should keep the transaction records, chat logs, and logistics information proving that the goods were delivered and what condition they were in at delivery.
Negotiation Before Litigation
Not every quality claim should be defended to the last line. The seller should assess the buyer's actual loss and the strength of the claim, and consider a commercial settlement where it is cheaper than litigation. The Civil Code expressly offers a ladder of remedies for defective goods: repair, replacement, return, reduction of price, and damages. A seller who offers a free repair or replacement quickly may preserve the customer relationship and avoid the cost and publicity of a lawsuit.
If the parties reach a settlement, it should be recorded in writing with clear terms: what the seller will do, what the buyer gives up, and what happens if either side fails to perform. A well-drafted settlement agreement converts an open dispute into a closed one.
Litigation Strategy: Burden of Proof and Additional Defendants
If the buyer files suit, the seller must answer in time and attend the hearing. The core of the defence is evidence. A seller that can produce certificates of conformity and inspection reports, and can show that the product failed because of the buyer's installation or use, will defeat the claim. In the illustrative case of an air conditioner that failed to cool after a week, the seller arranged for the manufacturer's technicians to inspect the unit, obtained a report showing that the poor cooling was caused by improper installation, presented the purchase records, the quality certificates, and the inspection report at trial, and the court dismissed the buyer's claim in full.
Where the defect genuinely originates with the manufacturer, the seller may apply to add the manufacturer as a co-defendant so that liability is allocated in the same proceedings. This avoids the seller paying first and pursuing a separate indemnity claim later. The seller should also assess whether the buyer's claimed losses are real and supported: an invoice for repairs, a medical bill, or an earnings certificate should be examined critically rather than accepted at face value.
Inspection and Timely Notice: The Buyer's Own Obligations
Chinese law also imposes duties on the buyer that a seller can invoke. Article 620 of the Civil Code requires the buyer to inspect the delivered goods within the agreed period, or promptly if no period is agreed. Article 621 adds a time limit for complaints: where the parties have agreed on a quality warranty period, the buyer must notify the seller of any non-conformity within that period, and in the absence of such an agreement the buyer must notify the seller within a reasonable period after discovering the defect, in any event within two years of receiving the goods. A buyer who raises a defect for the first time long after acceptance, or after the goods have been used and modified, faces a significant procedural barrier.
In practice, this means the seller should keep evidence of the delivery date and of the agreed quality warranty terms, because both determine whether the buyer's notice was timely. It also means that a claim based on a defect that the buyer could have discovered at delivery, but did not raise then, is considerably weaker than a claim raised promptly. Keeping a simple delivery log, with dates and the names of the persons who signed, is one of the cheapest and most effective protective measures available to a seller.
Remedies and the Ceiling on Damages
A seller also benefits from understanding the remedies a successful buyer can actually obtain. Article 582 of the Civil Code provides that where performance does not conform to the agreement, the aggrieved party may, according to the nature of the subject matter and the extent of the loss, reasonably choose to demand repair, replacement, return of the goods, reduction of price, or damages. These remedies are alternatives, not cumulative: a buyer who keeps the goods cannot also claim a full refund, and a buyer who accepts a repair cannot later demand replacement for the same defect.
Article 584 then caps the recoverable loss: damages are limited to the loss caused by the breach, including the benefit the buyer would have obtained had the contract been performed, but not beyond the loss that the seller foresaw or ought to have foreseen at the time of contracting. Claims that float free of the contract, such as speculative business losses the seller was never told about, fall outside the recoverable range, and a seller should say so clearly at the negotiation stage.
Practical Guidance for Sellers
For sellers operating in China, the durable lesson is that a product quality claim is won or lost on documentation, and the same discipline applies at every stage of the relationship, from procurement from the manufacturer to delivery to the customer. Maintain quality certificates, inspection reports, and conformity records for every batch; keep installation and usage instructions in the package; record every delivery; and keep a channel to the manufacturer for rapid technical assessment. When a claim arises, respond promptly, communicate professionally, preserve the product, and obtain an objective inspection before the dispute hardens. If litigation is unavoidable, present the evidence of conformity and the true cause, and consider joining the manufacturer where appropriate. Gangfeng Hu of Shanghai advises sellers and distributors on product quality disputes, commercial contract claims, and the evidence strategies that protect their positions in Chinese courts.
