3. Recognition and Enforcement of Foreign Court Judgement and Arbitration Awards
According to Article 297 and 304 of the new Civil Procedure Law, the expression stated in the original Civil Procedure Law as “shall” has been amended as “may”, which means that it will be more flexible for the applicant to decide whether they shall submit the application to the foreign courts or PRC Court having jurisdiction on the effective arbitration awards, then such awards may be enforced at the location of the person or their property subjected to execution.
Article 300 of the new Civil Procedure Law, as the newly added provision, has clearly specify that the PRC Court won’t recognize or enforce the effective judgement or ruling made by foreign courts under the following circumstances:
(1) The foreign court has no jurisdiction over the case according to Article 301 of the new Civil Procedure Law;
(2) The defendant has not been lawfully summoned or, although lawfully summoned, has not been given a reasonable opportunity to make a statement or argue, or a party without legal capacity has not been appropriately represented;
(3) The judgment or ruling by the foreign court was obtained fraudulently;
(4) A PRC 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;
(5) There is or would be a violation of the basic principles of PRC law or harm of the national sovereignty, security, or the public interest of the PRC.
In addition, newly added Article 302 and Article 303 stipulate that the PRC Court may rule to suspend the litigation in case the dispute thereunder concerns the same as which has been ruled as of the effective judgement or ruling by foreign court. However, the PRC Court shall resume the litigation if the judgement or ruling of the foreign court does not meet the conditions of recognition under the new Civil Procedure Law. The resumed litigation shall be eventually rejected, if the PRC Court rules to recognize and enforce the foreign court’s judgement or ruling according to the new Civil Procedure Law. If a party is dissatisfied with the ruling of the PRC Court to or not to recognize and enforce a foreign court’s judgement or ruling, it may apply to the next higher-level PRC Court for reconsideration within ten days of service of the ruling.