In today’s world, China’s connections with foreign countries are becoming increasingly close. With frequent exchanges and growing trade and investment scales, civil, commercial, and even criminal legal disputes between Chinese citizens or enterprises and foreigners are inevitable. If such disputes are resolved through foreign court litigation outside of China, there may be a need to apply for compulsory enforcement in China. For example, if a foreign court rules that a Chinese company owes someone a sum of money, but the Chinese company does not have sufficient assets in that foreign country to fulfill the judgment, then the creditor of that judgment would need to apply for recognition and enforcement of that foreign judgment in China.

Applying for the recognition and enforcement of foreign court judgments primarily relies on Article 288 of China’s Civil Procedure Law, relevant judicial interpretations, and practices formed through judicial precedents. Here are the main points:

I. Scope of Recognizable and Enforceable Foreign Court Judgments

According to Article 288 of the Civil Procedure Law, a person identified as the entitled party in a legally effective judgment or ruling issued by a foreign court can apply for its recognition and enforcement in a Chinese court. Generally, foreign court judgments, rulings, and decisions on substantive disputes in civil and commercial cases, as well as judgments on civil damages in criminal cases, fall within the scope of recognition and enforcement. However, property preservation orders, litigation preservation orders, and other procedural legal documents issued by foreign courts are excluded.

II. Application Procedure

1. Applicant and Respondent:

– The applicant is the person entitled under the foreign court judgment, i.e., the party holding the rights to the judgment’s subject matter. If the entitled person has died or ceased to exist, their heirs or estate administrators can be the applicants. The party opposing the entitled party in the judgment is listed as the respondent. If both parties file applications, they are both listed as applicants.

– In practice, the court requires proof of the existence of the applicant or respondent, such as ID documents, passports, business registration certificates, and contract documents.

2. Jurisdiction:

– Generally, the intermediate people’s court where the respondent resides (if the respondent resides in China) or where the respondent’s property is located will have jurisdiction.

3. Application Time Limit:

– The time limit for applying for recognition and enforcement of a legally effective foreign court judgment, ruling, or foreign arbitration award is two years, starting from the date the obligation specified in the judgment must be fulfilled. If the application is overdue, the people’s court will not recognize and enforce it. This two-year period can be subject to suspension, interruption, and extension as per the rules of limitation. However, in practice, applying for enforcement in a foreign court may not constitute an interruption of the two-year period. Therefore, once the foreign court judgment becomes legally effective, it is crucial to promptly apply for recognition and enforcement in China if the obligor has assets in China to avoid missing the time limit.

4. Application Materials:

– Application Form: This should include the identity information of the applicant and respondent, the name of the foreign court that issued the judgment, the case number, the start date of the litigation process, the judgment date, and specific application requests and reasons. The application should also provide details of the respondent’s assets and their location and explain the execution status of the judgment outside China.

– Copy of the Foreign Judgment.

– Proof of the Judgment’s Legal Effectiveness: As an exception, if the foreign court judgment specifies this matter, no additional proof is required. The people’s court will review whether the judgment has taken legal effect according to the laws of the country where the judgment was made.

It should be noted that documents formed outside China must go through notarization and legalization procedures. China joined the Convention Abolishing the Requirement of Legalization for Foreign Public Documents in 2023. Thus, for documents from member countries of the convention, no embassy or consulate authentication is needed, and an attached certificate according to the convention is sufficient.

III. Review Procedure and Standards

1. Prerequisites for Review:

– To recognize and enforce foreign court judgments, Chinese courts first review whether the court’s country has concluded or jointly participated in an international treaty with China or has a reciprocal relationship with China. Detailed information on judicial assistance treaties concluded by China can be found on the Ministry of Foreign Affairs treaty database website (http://treaty.mfa.gov.cn). If no treaty or reciprocal relationship exists, the application will be procedurally dismissed, except for applications for recognizing foreign court judgments on divorce.

Based on current judicial practice, Chinese courts, when reviewing applications for recognizing and enforcing foreign court judgments, determine the existence of a reciprocal relationship on a case-by-case basis:

– Whether under the law of the court’s country, civil and commercial judgments made by Chinese courts can be recognized and enforced.

– Whether China and the court’s country have reached a reciprocal understanding or consensus.

– Whether the court’s country has made a reciprocal commitment through diplomatic channels to China or China has made such a commitment to the court’s country, without evidence showing that the court’s country has refused to recognize and enforce Chinese court judgments on the grounds of a lack of reciprocity.

2. Specific Review Standards:

– If there is a treaty or reciprocal relationship between the two countries, the Chinese court will review the substantive content of the foreign court judgment to determine if it is eligible for recognition and enforcement.

– In the case of a judicial assistance treaty, if the foreign judgment does not violate the basic principles of Chinese law or China’s sovereignty, security, or public interest, the court will typically issue a ruling to recognize its validity based on the party’s application. If enforcement is needed, the court will issue an enforcement order.

– For countries with a reciprocal relationship, if the judgment violates the basic principles of Chinese law, sovereignty, security, or public interest, the court will not recognize and enforce it. Additionally, the court will not recognize or enforce the judgment if:

– The foreign court lacks jurisdiction over the case according to Chinese law.

– The respondent was not properly summoned or, despite proper summons, did not receive a fair opportunity to present their case, or if an incapable party did not receive appropriate representation.

– The judgment was obtained through fraud.

– A Chinese court has already ruled on the same dispute, or a third country’s judgment or arbitration award on the same dispute has been recognized and enforced in China.

Author Introduction

Ouyang Chenggou, Master of Law, Senior Lawyer in China, Director of Beijing Baokun Law Firm, has extensive experience in corporate management, real estate, and dispute resolution.