One of our China lawyers got the following email this week (modified a bit to avoid any identifiers):

I am certain you hear this everyday…”my supplier has disappeared with my deposit.” For the first time in 20 years it has just happened to me. We are a small family business in Illinois importing promotional products

The China Daily recently did an article, entitled, “Business lawsuits in sharp increase,” on how lawsuits involving foreign companies are up ten percent in the last year.  The article ascribes this increase in litigation to more foreign companies coming into China and to the economic downturn. Both of those things may be true