Introduction: In recent years, with the acceleration of the globalization process and the increasing frequency of international exchanges, legal disputes arising from international cooperation have become more diverse and complex. Against this backdrop, the issue of recognition and enforcement of foreign judgments by Chinese courts has attracted significant attention. This article will introduce the process and relevant regulations regarding the recognition and enforcement of foreign judgments by Chinese courts.
 
Amidst the wave of globalization, the recognition and enforcement of foreign judgments by Chinese courts hold significant importance.

Last year, the Beijing First Intermediate People’s Court applied the principle of reciprocity and recognized the bankruptcy ruling made by the Aachen District Court in Germany, allowing the German bankruptcy administrator to fulfill his duties within China.

 This marked the first domestic case of recognizing a foreign bankruptcy procedure. The case involved Rhein GmbH, a German company registered in Aachen, which was declared bankrupt by the Aachen District Court on January 1, 2011, due to insolvency and inability to cover debts. Dr. Andreas Ringstmeier was appointed as the bankruptcy administrator. To dispose of the company’s assets in China, the bankruptcy administrator applied to the Beijing First Intermediate People’s Court for recognition and assistance. The court determined that the German bankruptcy procedure complied with relevant Chinese laws and was mutually recognized with the bankruptcy procedure initiated in China, hence ruling to recognize the identity of the German bankruptcy administrator and allowing him to fulfill his duties within China.

According to Chinese law, Chinese courts are required to recognize and enforce foreign court judgments in accordance with bilateral judicial assistance treaties or the principle of reciprocity. If there is no bilateral judicial assistance treaty between the two countries, but it can be proven that the other country has recognized and enforced Chinese judgments, it can also prove the existence of reciprocal relations between the two sides.
 
Cases we have handled:
One of our Norwegian clients obtained a valid judgment from a Norwegian court demanding a Taiwanese company in China to pay 8 million US dollars. However, the Taiwanese company has no assets in Norway or Taiwan, but it has a subsidiary in Shenzhen, China, with enforceable assets under its name. Therefore, the Norwegian client sought recognition and enforcement of the Norwegian court’s judgment in mainland Chinese courts. Our litigation process and steps are as follows:
 
1. Notarize and authenticate the first-instance and second-instance judgments in Norway and the authorization of the client.
2. Submit application materials to Chinese courts and prove the existence of reciprocal relations between China and Norway.
3. Apply for the freezing of assets of the Shenzhen company.
4. Await the Chinese court’s recognition and enforcement of the Norwegian judgment.
 
Conclusion: In the trend of global economic integration, the recognition and enforcement of foreign judgments by Chinese courts hold significant importance. By lawfully handling cross-border disputes, maintaining a good order of international cooperation, it contributes to constructing a more just, transparent, and stable international legal environment. With the continuous deepening of China’s opening-up policy, it is believed that Chinese courts will usher in more innovations and progress in the recognition and enforcement of foreign judgments.
 
For further inquiries, please consult Abby Lawyer.