China - Enforcement of Money Judgments
Eugene Chen, Counsel, Hogan Lovells International, LLP
Originally from Enforcement of Money Judgments
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I. PRESENT ATTITUDE TOWARDS ENFORCEMENT OF FOREIGN MONEY JUDGMENTS
A. Describe the receptiveness of your government (including courts) toward enforcement of foreign money judgments.
The People’s Republic of China Civil Procedure Law (“Civil Procedure Law”) includes a provision governing enforcement of foreign judgments. In particular, this provision allows recognition and enforcement of foreign judgments in China based on the relevant multilateral or bilateral treaties, or the principle of reciprocity. Nevertheless, the legal regime for recognition and enforcement of foreign judgments in China is still being refined and improved. In practice, it is difficult (and in most cases likely impossible) to enforce a foreign court judgment in China.
China has not joined any multilateral treaties specifically pertaining to recognition and enforcement of foreign judgments. It has joined, however, a number of bilateral treaties on judicial cooperation with a limited number of countries. Many of these treaties include provisions on the reciprocal recognition and enforcement of judgments.
As of February 2023, bilateral treaties that provide for recognition and enforcement of judgments are in place between China and the following countries: Argentina, The United Arab Emirates, Kuwait, Tajikistan, Lithuania, Peru, North Korea, France, Tunisia, Laos, Vietnam, Uzbekistan, Kyrgyzstan, Morocco, Hungary, Cyprus, Egypt, Greece, Bulgaria, Kazakhstan, Belarus, Cuba, Ukraine, Turkey, Russia, Spain, Italy, Romania, Mongolia, Poland, Brazil, Algeria, Bosnia and Herzegovina, Ethiopia, and Iran. The Sino-Australian bilateral investment treaty also provides for reciprocal recognition and enforcement of judgments relating to “investments” defined therein.
Notably, cooperation with the United States and Japan, China’s two largest trading partners, is very limited. With respect to the United States, China has entered into a bilateral judicial assistance treaty regarding criminal cases, but has no agreement to recognize or enforce civil and commercial judgments.