Retention of title

Under the Contract Law of the PRC, a seller retains the ownership of their goods before the buyer has paid in full only when both parties have agreed to this in the contracts. If there are no such stipulations, the ownership of the goods transfers to the buyer upon delivery.

The Contract Law of the PRC:

  • Article 133. The ownership of a targeted matter is transferred upon the delivery of the targeted matter, unless the law provides otherwise or the parties stipulate otherwise
  • Article 134. The parties may stipulate in a purchase and sales contract that the seller retains the ownership of the targeted matter if the buyer fails to pay the price or perform other obligations

(End of chapter 2 - Retention of title)

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