The basic rule
Under the PRC Civil Code, the standard limitation period for civil claims is three years. For a trade debt, it generally runs from the date payment fell due — your invoice due date, or the contractual payment milestone. When the period expires, the debt is not extinguished, but the debtor gains a complete procedural defence: they can simply refuse, and no court will compel payment.
What restarts the clock
Chinese law allows the limitation period to be interrupted, after which three years run again from the interruption. The recognised triggers include: the debtor acknowledging the debt in writing (including partial payment or a signed reconciliation statement); the creditor making a documented demand for payment; or the creditor filing suit or arbitration.
- Any partial payment by the debtor — however small — is both an acknowledgement and a restart. Chase the payment, not the promise.
- A written demand delivered by provable means (courier with signature confirmation, notarised service) is the standard interruption tool — one reason our demand letters are served the way they are.
- A signed repayment plan or debt confirmation letter is the strongest reset: fresh three years, plus dramatically better evidence.
- "We discussed it on WeChat" can help, but only if the records are preserved properly — screenshots alone are fragile.
If you are approaching three years
Treat it as an emergency, not a negotiation opportunity. Debtors near the limitation boundary have every incentive to string you along for a few more months. The correct sequence is: a documented demand immediately — which both interrupts the clock and opens the negotiation channel — with the evidence file assembled in parallel. We have seen creditors lose six-figure claims by negotiating through the deadline with a debtor who knew the date better than they did.
A note on choice of law
If your contract selects foreign law and an offshore forum, different limitation rules may apply — but delay still erodes evidence, assets and the debtor’s sense of urgency. Whatever your contract says, time is not your friend. Act inside two years; never let a claim approach three.