The Condition and Procedure on the Recognition and Enforcement of Foreign Arbitral Awards in China
2013-September-9 Source:
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Pursuant to the Notice of the Standing Committee of the National People's Congress on Implementing the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“the New York Convention”) Acceded to by China, the Notice of the Supreme People’s Court on Implementing the Convention on the Recognition and Enforcement of Foreign Arbitral Awards Acceded to by China and the Civil Procedure Law of the People's Republic of China, the current legal framework of recognition and enforcement of foreign arbitral awards in China are as follows:

1. Within the Frame of Chinese Domestic Laws.

Foreign arbitral awards can be recognized and enforced the Chinese court by application. The party involved may apply to the intermediate people's court of the place where the party subjected to enforcement has his domicile or where his property is located. The people's court shall handle the matter pursuant to international treaties or agreements concluded or acceded to by the People's Republic of China; or where in the absence of such applicable international treaties or agreements, the people's court shall handle the matter in accordance with the principle of reciprocity. China made the declaration on reciprocity reservation and commercial reservation upon its accession to New York Convention. China will recognize and enforce the foreign arbitral awards only to the disputes arising out of legal relationships, whether contractual or not, which are considered commercial under the Chinese law. China will only recognize and enforce the foreign arbitral awards which are made and become effective in the territory of another contracting state after China’s accession to the New York Convention.

2. The Pre-condition for Recognition

If a party invokes recognition of a foreign arbitral award, he needs to self review whether the following pre-conditions are satisfied.

1) The party against whom it is invoked resides in Chin;

2) The losing party has not performed the award within the specified time;

3) The winning party applies for the recognition at the competent Chinese court.

(This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at or by phone on 13926185641.)

Editor: Kate
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