2024 Guide to Enforce US Judgments in China
Can I sue Chinese companies in the United States and then enforce a US judgment in China?
You probably don’t want to travel so far away as to file a lawsuit in China. You may just want to take your case to the court on your doorstep because you are more familiar with your home country.
However, you are also aware that most, if not all, of the Chinese debtor’s assets are located in China. As a result, even if you win the case in your home country, you will still need to have your judgment enforced in China.
Under Chinese law, you cannot enforce a judgment in China on your own or through another agency. You will need to apply to the Chinese courts for recognition and enforcement of your judgment.
This concerns the recognition and enforcement of foreign judgments in China.
Since 2015, China has adopted a more friendly attitude towards the recognition and enforcement of foreign judgments. A number of judicial policies, such as two BRI-related judicial documents, and judicial outreach, such as the Nanning Statement, have shown that Chinese courts are more open and willing to recognize and enforce foreign judgments than ever before.
Even more promising, China’s Supreme People’s Court (SPC) began applying new rules in 2022, and China’s top legislature passed the Fifth Amendment to the PRC Civil Procedure Law in 2023, all of which aim to ensure transparent and fair procedures and practices, thereby improving predictability for all judgment creditors.
In summary, now is the time to consider the enforcement of your judgments in China.