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How to Get a Foreign Judgment Recognized and Enforced in China?

Introduction

Imagine this scenario: there is a civil judgment issued by a foreign court regarding a Contract of Sale, where one of the contracting parties is a company located in China, whose property is subject to enforcement.

 


a Foreign Judgment Recognized and Enforced in China

Overview of the Process

For a civil judgment issued by a foreign court to gain legal force in mainland China, it must be recognized by a court with jurisdiction before it can be enforced. Although these two steps often occur simultaneously in practice, specific legal criteria must be met for recognition. This article addresses three primary questions:

1. How to identify a court in China with jurisdiction?

2. How to determine if the judgment will be recognized by a Chinese court?

3. What materials are required for the recognition and enforcement processes?

 


Identifying the Court with Jurisdiction

The first step involves identifying the appropriate court in China for applying for recognition and enforcement of a foreign judgment.

 

According to Article 281 of the Civil Procedure Law of the People's Republic of China (PRC), parties to foreign judgments shall submit their applications directly to the intermediate people’s court with jurisdiction for recognition and enforcement regarding the said judgments.

 

The underlying message is that this identification issue is equally treated as those domestic enforcement cases and there are no special requirements. Therefore, next we should refer to Article 244 of Civil Procedure Law. This term stipulates that:

 

“Parts with regard to property within civil judgments with force of law shall be enforced by the court who made the first-instance judgment, or the court of the same level as the court of first instance in which the property is located.”

 

Combining these provisions, the intermediate court in the location of the property is the proper court for handling recognition and enforcement.

 


Qualifying for Recognition and Enforcement

Once the appropriate court is identified, the next step is to determine if the foreign judgment qualifies for recognition and enforcement in China.

 

To start with, according to Article 282 of Civil Procedure Law, the contents of judgment shall not contradict with China’s national sovereignty, security, public interests and fundamental principles of laws. This is easy to check.

 

Subsequently, there are two standards for a foreign judgment to pave its way between Chinese mainland: the bilateral civil judicial assistance treaties between the issuing country and China will give the judgment a pass to recognition and enforcement. If there is not any civil judicial assistance treaty reached between the two, which is usually the case, you can still turn to the principle of reciprocity. In fact, that kind of treaties only existed between China and a limited number of countries, including Ethiopia, Brazil, Kuwait, Algeria, Peru, UAE(United Arab Emirates), North Korea, South Korea, Argentina, Lithuania, Tunisia, Vietnam, Laos, Singapore, Uzbekistan, Egypt, Morocco, Tajikistan, Hungary, Cyprus, Belarus, Bulgaria, Thailand, Kazakhstan, Cuba, Russia, Spain, Ukraine, Turkey, Italy, Romania, Mongolia. Many countries are not listed.

 

You may ask what is “principle of reciprocity”? To help you understand this terminology, here is a judgment issued by Wuhan Intermediate People’s Court, which is deemed as the first case where a Chinese mainland court recognized and enforced a business judgment made by an American court.

 

As mentioned above, bilateral conventions don’t work here as there is not any between the issuing country, America, and China. However, the Wuhan court unprecedently applied the principle of reciprocity, saying that in consideration of the fact that American courts used to recognize and enforce civil judgments made by Chinese courts, the principle of reciprocity existed between the two countries, it was thereby reasonable to recognize as well as enforce judgements from America.

 

In summary, as we can see on the judgment analysis written by the Wuhan court, if you could submit any evidence that can prove the issuing country used to recognize even a single judgment from Chinese mainland, there is a considerable opportunity for a judgment from the said country to be recognized and enforced.

 


Preparation of Essential Materials

The final step involves preparing the necessary materials for the application process.

 

Pursuant to the Interpretations of Supreme Court regarding Civil Procedure Law, Article 543, applicants shall submit an application letter affixed with the original official judgment, or a copy which has been authenticated to be conforming. Either copy or official judgement you selects to hand in, a Chinese translation version is necessary.

 


Efficiency Tip

Please note that it is preferred to apply for recognition and enforcement at the same time. Compared to doing them one-by-one, it’s more time-saving.

 

In addition, if you are bad luck and your applications are turned down, you can choose to file a lawsuit in China. Contact us immediately to get detail information and guidance on lawsuit.

 


Contact Us

 

Larry Zhou, Senior Partner

Landing Law Offices China

Mobile& WhatsApp: +86 13342931852

Wechat: zhoushichaozsc

Linkedin: Larry Zhou

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