Foreign business owners in China who do business in the country or who are engaged in business relations with a Chinese company need to know if, in the eventuality of a litigation, foreign judgments are recognized in China for a particular case. When deciding if a foreign judgment can be or not be enforced in China, the Chinese courts will usually take two important principles into consideration – the principle of reciprocity and the due service requirement.
Because each commercial or business dispute is different, our litigation lawyers in China can give you detailed information about your case and whether or not a judgment released in another country will be valid in China.
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Enforcement of foreign judgments in China
It is possible for foreign judgments to be recognized in China, but only under certain conditions and if China has signed a treaty for this purpose with the country from which the trial is initiated. A foreign company can sue a Chinese company, if the country is part of the Arrangement of Reciprocal Enforcement of Judgments in Civil and Commercial Matters with Hong Kong or of other bilateral enforcement treaties (such as those with communist or former communist countries).
China is also a member of the Hague Convention, such as many other countries. However, China does not observe Article 10 of the Hague Convention, thus the country does not accept the direct service of foreign judgments via courier within its territory. In order to come into force in China, a judgment issued in another country must be served to the Chinese defendant accordingly.
Litigation in China
In order to enforce a foreign judgement in China, a Chinese lawyer can invoke the principle of reciprocity in the country where the judgment is made. A parallel between cases can usually be made even in countries with which China has not signed any bilateral treaties for mutually recognition of judgments or verdicts. In these cases, our experienced lawyers in China can help you use the principle of reciprocity that exists in the Chinese Civil Procedure Law.
Chinese courts will most likely not recognize a default judgement issued aboard without a trial on substantial issues. Our law firm in China can help you with an analysis of your case and our experts will offer you a suggestion for enforcing a foreign judgment or verdict in China.
You can contact our Chinese law firm for more information about the Chinese courts or about other legal issues.