International Civil Litigation in China: A Practical Analysis of the Chinese Judicial System

Abstract

In recent years, international civil litigation in China has been on the rise. This trend will inevitably continue with China's entry into the World Trade Organization. Given the increase of foreign businesses in China, a better understanding of the Chinese judicial system becomes essential to protect foreign business interests. Jurisdiction, choice of law, and enforcement of judgments are three primary concerns of foreign parties seeking judicial relief and remedies in China. Questions commonly asked include: what are the bases for a Chinese People's Court to assert jurisdiction over foreign parties; what are the standards to determine judicial competence; how does a Chinese People's Court decide which law will be applied in each particular case involving "foreign elements;" and whether a judgment could be effectively enforced and by what means. Fear that China lacks the rule of law and an independent judicial system gives rise to hesitancy to conduct business in China and pursue legal rights. Creating public confidence in the judiciary is one of China's most important tasks, as it seeks to attract international business.