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The enactment of this new law is intended to upgrade and systematise the existing Chinese conflict laws, in order to help parties to international civil and commercial transactions choose the proper governing laws, and to facilitate the adjudication of international civil and commercial disputes by Chinese courts or international arbitration tribunals
In 1986, the People's Republic of China ratified the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), the multinational treaty that requires the courts of signatory states to enforce foreign arbitral awards
