Attorney Jeremy Hu Successfully Represents U.S. Buyer in Contract Dispute vs. Shandong Supplier, Aids Settlement & Loss Recovery

In international trade of goods, changes in tax or customs policies can directly impact ongoing transactions, often putting foreign buyers in a difficult position—especially when they have already paid the majority of the prepayment to Chinese suppliers.

In 2025, a U.S. buyer encountered such a challenging situation. The buyer planned to purchase a batch of steel from a supplier in Shandong, China, with the goods to be shipped to Libya, and had paid 30% of the prepayment according to the proforma invoice. Just as the supplier was preparing to ship, Libyan customs abruptly changed its policy, prohibiting the import of this type of steel and imposing heavy fines for violations. This placed the buyer in a dilemma.

The U.S. buyer then requested to cancel the order, but the Shandong supplier refused direct cancellation, instead proposing that the buyer place an additional “window order” with prepayment, after which the original steel order payment would be refunded. The buyer complied, but the supplier reneged, and neither order was shipped nor refunded.

Through a friend’s introduction, the U.S. buyer learned that the law firm Landing (Shenzhen) Law Office, led by attorney Larry Zhou, had extensive experience in international trade, and thus entrusted the Larry’s team to handle the case.

Attorney Jeremy Hu from Larry's team took over the case, quickly mapping out the transaction chain and key communications, and securing essential evidence such as payment receipts. Based on this, a letter of demand was sent to the supplier. 

Through a combination of formal notice and stepwise pressure via compliant channels, the cost and foreseeable consequences of non-performance for the supplier were gradually increased, bringing them back to the negotiating table.

With Jeremy’s persistent, professional, and effective negotiation, the Shandong supplier shifted from initially refusing to refund to engaging in substantive discussions. After multiple rounds of negotiation and thorough confirmation with the client, a settlement was reached, with the supplier agreeing to refund the majority of the payment. The dispute was thus resolved efficiently and with low risk, allowing the buyer to avoid the uncertainties and high costs of litigation or arbitration.

In cross-border claims, whether through litigation or negotiated pressure, these are merely means to an end. The core principle is to use all available methods to ultimately help clients recover their losses and achieve a substantive resolution of the issue.

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