On September 1, 2023, at the fifth meeting of the Standing Committee of the 14th NPC, the draft amendment to the Civil Procedure Law of the People's Republic of China was deliberated and adopted. The revised Civil Procedure Law will come into effect on January 1, 2024.
The revised Civil Procedure Law provides detailed provisions on jurisdiction, especially in relation to the jurisdiction over foreign-related civil disputes. For example:
- The second paragraph of Article 130 is amended to: "Where
the party raises no objection to the jurisdiction of the case and
responds to the claim and enters defense or raises a counterclaim,
t the people's court accepting the case shall be deemed to have
jurisdiction over the case, unless it is in violation of the
provisions regarding jurisdiction by level and exclusive
jurisdiction."
- Article 272 is amended to Article 276: "Where an action
other than those concerning personal relationships is instituted
against a defendant without a domicile within the territory of the
People's Republic of China due to a foreign-related civil
dispute, if the place where the contract was executed, the place
where the contract was performed, the place where the subject
matter of the action is located, or the place where the
distrainable property is located, the place where the tort was
committed or the place where the representative office is domiciled
is within the territory of the People's Republic of China, the
action may come under the jurisdiction of the people's court of
the place where the contract was executed, the place where the
contract was performed, the place where the subject matter of the
action is located, the place where the distrainable property is
located, the place where the tort was committed or the place where
the representative office is domiciled.
Apart from the preceding provision, where a foreign-related civil dispute has other appropriate connections with the People's Republic of China, it may come under the jurisdiction of a people's court." - A new article is added as Article 277: "If the parties to
a foreign-related civil dispute agree in writing to be subject to
the jurisdiction of a people's court, it may come under the
jurisdiction of a people's court."
- A new article is added as Article 278: "Where the party
raises no objection to the jurisdiction of the case and responds to
the claim and enters defense or raises a counterclaim, a
people's court shall be deemed to have jurisdiction over the
case."
- Article 273 is amended to Article 279: "the following
civil cases shall come under the exclusive jurisdiction of a
people's court:
- an action instituted for a dispute over the establishment,
dissolution or liquidation of a legal person or any other
organization established within the territory of the People's
Republic of China or over the validity of a decision made by such
legal person or other organization;
- an action instituted for a dispute concerning the validity of
an intellectual property examined and granted within the territory
of the People's Republic of China;
- an action instituted for a dispute arising from the performance
within the territory of the People's Republic of China of a
Sino-foreign equity joint venture contract, a Sino-foreign
cooperative joint venture contract or a contract for Sino-foreign
cooperative exploration and development of natural
resources."
- an action instituted for a dispute over the establishment,
dissolution or liquidation of a legal person or any other
organization established within the territory of the People's
Republic of China or over the validity of a decision made by such
legal person or other organization;
- A new article is added as Article 280: "For a same dispute
between the parties concerned, where one party institutes an action
in a foreign court and the other party institutes an action in a
people's court, or one party institutes an action in both a
foreign court and a people's court, if the people's court
has jurisdiction over the action in accordance with this Law, the
people's court may accept the action. Where the parties
conclude an exclusive jurisdiction agreement to be subject to the
jurisdiction of a foreign court and do not violate the regulations
on exclusive jurisdiction herein or involve the sovereignty,
security or public interest of the People's Republic of China,
the people's court may rule not to accept the action; if the
action has been accepted, a ruling shall be made to reject
it."
- A new article is added as Article 281: "Where after a
people's court accepts an action in accordance with the
provisions of the preceding article, a party concerned submits a
written application to the people's court to suspend the action
on the grounds that a foreign count has accepted the action earlier
than the people's court, the people's court may rule to
suspend the action, unless one of the following circumstance
exists:
- the parties agree to be subject to the jurisdiction of the
people's court, or the dispute is subject to the exclusive
jurisdiction of the people's court;
- it is obviously more convenient for the people's court to
handle the trial
Where the foreign court fails to take necessary measures to try the case or fails to conclude the case within a reasonable time limit, the people's court may resume the action upon a written application by the party concerned.
Where a legally effective judgment or ruling made by a foreign court has been recognized in whole or in part by a people's court, if the party concerned institutes another action in the people's court against the recognized part, a ruling shall be made not to accept the action; if the action has been accepted, a ruling shall be made to reject it."
- the parties agree to be subject to the jurisdiction of the
people's court, or the dispute is subject to the exclusive
jurisdiction of the people's court;
- A new article is added as Article 282: "Where a defendant
raises an objection to the jurisdiction over a foreign-related
civil case accepted by a people's court, and meanwhile all of
the following circumstances exist, the people's court may rule
to reject the case and inform the plaintiff to institute an action
in a more convenient foreign court:
- the basic fact disputed in the case did not take place within
the territory of the People's Republic of China, and it is
obviously inconvenient for the people's court to try the case
and for the parties to attend the trial;
- the parties make no agreement to be subject to the jurisdiction
of the people's court;
- the case is not subject to the exclusive jurisdiction of the
people's court;
- the case does not involve the sovereignty, security or public
interest of the People's Republic of China;
- it is more convenient for a foreign court to try the
case.
Where after a ruling is made to reject the action, the foreign court refuses to exercise its jurisdiction over the dispute or fails to take necessary measures to try the case or fails to conclude the case within a reasonable time limit, and the party concerned institutes an action in the people's court again, the people's court shall accept the action."
- the basic fact disputed in the case did not take place within
the territory of the People's Republic of China, and it is
obviously inconvenient for the people's court to try the case
and for the parties to attend the trial;
- A new article is added as Article 301: "Under one of the
following circumstances, the people's court shall determine
that the foreign court has no jurisdiction over the case:
- the foreign court has no jurisdiction over the case in
accordance with the law of the country of the foreign court, or
although it has jurisdiction in accordance with the law of its
country, it has no appropriate connection with the disputed
involved in the case;
- there is or would be no violation of the provisions herein on
exclusive jurisdiction;
- there is or would be no violation of the agreement between the parties on an exclusive court jurisdiction."
- the foreign court has no jurisdiction over the case in
accordance with the law of the country of the foreign court, or
although it has jurisdiction in accordance with the law of its
country, it has no appropriate connection with the disputed
involved in the case;
The revised Civil Procedure Law also includes specific
provisions regarding evidence collection, enforcement of judgments
and rulings, and immunities. The details are as follows.
- A new article is added as Article 284: "Where a party
applies to a people's court for investigation and collection of
evidence located outside the territory of the People's Republic
of China, the people's court may investigate and collect the
evidence according to an international treaty concluded between or
jointly acceded to by the country where the evidence is located and
the People's Republic of China or through diplomatic
channels.
Unless prohibited by the law of the country where a party or a witness is located, a People's Court may investigate and collect evidence by the following means:
- entrusting the Chinese embassy or consulate in that country to
collect evidence where the party or witness is a national of the
People's Republic of China;
- collecting evidence through instant communication tools upon
agreement by the two parties;
- by other means agreed by the two parties."
- entrusting the Chinese embassy or consulate in that country to
collect evidence where the party or witness is a national of the
People's Republic of China;
- Article 287 is amended to Article 297, and its second paragraph
is amended to: "If a party applies for enforcement of a
legally effective judgment or ruling made according to law within
the territory of the People's Republic of China and the party
subject to enforcement or his property is not located within the
territory of the People's Republic of China, the applicant may
directly apply for recognition and enforcement to the foreign court
with jurisdiction."
- Article 288 is amended to Article 298: "If a legally
effective judgment or ruling made by a foreign court requires
recognition and enforcement by a people's court, the party
concerned may directly apply for recognition and enforcement to the
intermediate people's court with jurisdiction. Alternatively,
the foreign court may, pursuant to the provisions of an
international treaty concluded between or acceded to by the foreign
state and the People's Republic of China, or in accordance with
the principle of reciprocity, request the people's court to
recognize and enforce the judgment or ruling."
- Article 289 is amended to Article 299: "Having received an
application or a request for recognition and enforcement of a
legally effective judgment or ruling of a foreign court, a
people's court shall review such judgment or ruling pursuant to
international treaties concluded or acceded to by the People's
Republic of China or in accordance with the principle of
reciprocity. If, upon such review, the people's court considers
that such judgment or ruling neither contradicts the basic
principles of the law of the People's Republic of China nor
violates State sovereignty, security and the public interest, it
shall rule to recognize its effectiveness. If enforcement is
necessary, it shall issue an order of enforcement, which shall be
implemented in accordance with the relevant provisions of the
Law."
- A new article is added as Article 300: "Having received an
application or a request for recognition and enforcement of a
legally effective judgment or ruling of a foreign court, a
people's court may, upon reviewing such judgment or ruling,
rule not to recognize or enforce it under one of the following
circumstances:
- the foreign court has no jurisdiction over the case according
to Article 301 of this Law;
- the defendant has not been lawfully summoned, or has not been
given a reasonable opportunity to make a statement or debate
despite being lawfully summoned, or the party without litigation
capacity has not been properly represented;
- the judgment or ruling by the foreign court was obtained
fraudulently;
- a people's court has already rendered a judgment or ruling
on the same dispute, or has recognized a judgment or ruling made by
a court of a third country on the same dispute;
- there is or would be a violation of the basic principles of
laws of the People's Republic of China or harm of the State
sovereignty, security, or public interest of the People's
Republic of China.
- the foreign court has no jurisdiction over the case according
to Article 301 of this Law;
- A new article is added as Article 302: "If a party applies
to a people's court for recognition and enforcement of a
legally effective judgment or ruling made by a foreign court, and
such judgement or ruling concerns the same dispute as being tried
by the people's court, the people's court may rule to
suspend the lawsuit.
Where a legally effective judgment or ruling made by a foreign court does not meet the conditions for recognition under this Law, a people's court shall rule not to recognize or enforce it and shall resume the suspended lawsuit; where such judgment or ruling meets the conditions for recognition under this Law, a people's court shall rule to recognize its effect and issue an enforcement order to enforce it in accordance with this Law where enforcement is needed, and the already suspended lawsuit shall be ruled to be rejected."
- A new article is added as Article 303: "If a party
disagrees with the ruling of recognition and enforcement or
non-recognition and non-enforcement, it may make an application for
reconsideration to the people's court at the next higher level
within ten days of service of the ruling."
- Article 290 is amended to Article 304: "If a legally
effective arbitration award made outside the territory of the
People's Republic of China requires recognition and enforcement
by a people's court, the party concerned may directly apply for
recognition and enforcement to the intermediate people's court
of the place where the party subject to enforcement is domiciled or
where his property is located. If the domicile or property of the
party subject to enforcement is not within the territory of the
People's Republic of China, the applicant may apply for
recognition and enforcement to the intermediate people's court
of the place where the applicant is domiciled or which has
appropriate connections with the dispute decided in the award. The
people's court shall handle the matter pursuant to
international treaties concluded or acceded to by the People's
Republic of China or in accordance with the principle of
reciprocity."
- A new article is added as Article 305: "Laws of the People's Republic of China in relation to the immunity of foreign States apply for civil litigation concerning a foreign State; this Law applies if the relevant laws do not contain any relevant provisions."
Please see the following link for the detailed text of the Decision:
http://www.npc.gov.cn/npc/c30834/202309/1c3f7c62678d4908807faab87aa40dff.shtml
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