What should the company do if it defaults on payment?

Legal analysis: if an enterprise defaults on payment for goods, the parties concerned can handle it through negotiation, mediation, arbitration and litigation.

Legal basis: People's Republic of China (PRC) Civil Procedure Law.

Article 3 The provisions of this Law shall apply to the people's courts in accepting civil lawsuits brought by citizens, legal persons, other organizations and among them because of property relations and personal relations.

Article 4 This Law must be observed in civil litigation within the territory of People's Republic of China (PRC).

Article 6 The judicial power of civil cases shall be exercised by the people's courts. The people's courts try civil cases independently in accordance with the law and are not subject to interference by administrative organs, social organizations or individuals.