Litigating a Cross-Border Commercial Dispute in China
Jurisdiction, preservation, foreign documents, court structure and judgment enforcement
Jurisdiction, preservation, foreign documents, court structure and judgment enforcement
Key takeaways
- Jurisdiction should be checked under the current Civil Procedure Law, the contract and any applicable exclusive-jurisdiction rule.
- Asset preservation and evidence preparation often have more commercial impact than abstract arguments about which court sounds most prestigious.
- The International Commercial Courts are permanent adjudicative bodies of the Supreme People’s Court and should not be described as ordinary two-instance trial courts.
1. Establish jurisdiction
The 2023 Civil Procedure Law addresses connecting factors, appropriate connection, written choice of Chinese courts, jurisdiction by appearance, parallel proceedings, exclusive foreign-court agreements and forum non conveniens. Article 279 reserves specified disputes to Chinese courts. The analysis must be based on the parties, contract, performance, subject matter and assets.
2. Choose the correct court level and location
China has basic, intermediate, higher and supreme people’s courts. Subject-matter and level jurisdiction can depend on the dispute type, amount and local judicial rules. Maritime, IP, financial and internet disputes may be handled by specialised courts or tribunals where established and competent. Current thresholds should be checked at filing rather than stated as a permanent national number.
3. Understand the International Commercial Courts
The First and Second International Commercial Courts in Shenzhen and Xi’an are permanent adjudicative bodies of the Supreme People’s Court. The Supreme People’s Court provisions define qualifying international commercial cases, including certain high-value cases where the parties choose the Supreme People’s Court. Because these are Supreme People’s Court proceedings, the resulting judgment should not be presented as an ordinary first-instance judgment followed by a direct appeal.
4. Plan preservation and service
Where there is a risk of asset dissipation, consider property preservation promptly and prepare the required security. Cross-border service can affect the timetable. Contractual notice provisions do not always replace formal judicial service requirements.
5. Prepare foreign identity and evidence documents
Foreign entities should prepare proof of legal status, powers of attorney and evidence in the form required by the court. Apostille procedures may simplify authentication for documents from Convention states, but the document type, place of formation and court requirements still matter. Chinese translations should be accurate and consistent with defined contractual terms.
6. Consider enforcement from the outset
Investigate assets before filing and assess whether the requested relief can be enforced. Recognition of a foreign judgment in China, or a Chinese judgment abroad, depends on treaties, reciprocity and local procedural law. A settlement during litigation should be documented in a form that supports enforcement if performance fails.
Before you act
- Confirm jurisdiction, court level and venue using current rules.
- Investigate assets and preservation options before filing.
- Prepare corporate authority and foreign documents early.
- Organise evidence and terminology for Chinese translation.
- Plan domestic and cross-border judgment enforcement.
How we can help
BizLawyerChina can assess jurisdiction and arbitration clauses, preserve evidence and assets, develop a settlement strategy, and coordinate arbitration or litigation involving Chinese counterparties and assets.
Principal official sources
- Civil Procedure Law of the People's Republic of China (2023 Amendment)
- SPC Provisions on Establishing the International Commercial Court
- National Laws and Regulations Database