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Introduction
The implementation of the Civil Code in 2021 marks a milestone event in the codification of China's civil and commercial laws. Building upon the foundation of China's legislative and judicial practices, it includes numerous breakthroughs and innovations. In complex commercial disputes, the Civil Code is typically the most crucial source of law.
Judicial interpretations issued by the Supreme People's Court and the Supreme People's Procuratorate profoundly impact adjudicative practice. While subordinate in hierarchy to statutes, judicial interpretations provide concrete interpretations of abstract legal provisions. To reduce judicial uncertainty, China has continuously pursued reforms in the guiding case system. In particular, guiding cases released by the Supreme People's Court should be referred to by courts when rendering judgements, except where they conflict with new laws, administrative regulations, judicial interpretations, or are superseded by new guiding cases. However, China's guiding case system differs from the common law doctrine of stare decisis, as prior case judgements do not possess binding force on subsequent cases.
Regarding cross-border dispute resolution, China has adopted an increasingly open stance in recent years. As a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, China declared both the reciprocity reservation and the commercial reservation. Consequently, arbitral awards of a commercial nature made within the territory of any other contracting state to the Convention can be recognised and enforced in Mainland China. For foreign judgements in civil and commercial matters, Chinese courts determine recognition and enforcement based on the principle of reciprocity. Notably, China signed the final text of the Convention on the Recognition and Enforcement of Foreign Judgements in Civil or Commercial Matters in July 2019 but has not yet formally acceded to the Convention, pending approval by the Standing Committee of the National People's Congress and the President. Due to multiple arrangements between Mainland China and Hong Kong, the mutual recognition and enforcement of civil and commercial judgements and arbitral awards between the Mainland and Hong Kong are relatively more convenient. The Supreme People's Court established the China International Commercial Court (CICC) in 2018 to adjudicate specific important international commercial cases, adopting a system where the first instance judgement is final. Representing a renowned foreign listed securities company, we handled the first case in the Shanghai Financial Court recognising and enforcing a Hong Kong arbitral award. We have also successively represented over 20 foreign financial institutions in applying for preservation measures in support of Hong Kong arbitrations. This enabled the effective freezing and seizure of valuable assets of domestic debtors at the commencement of the Hong Kong arbitration.
