Foreign companies and law firms frequently ask how to enforce foreign court judgments in China. This guide explains the legal framework, key requirements, and practical steps to convert a foreign judgment into actual recovery in China.
Background: Why Enforcing Foreign Judgments in China Is Different
For many overseas companies, winning a lawsuit in their home courts is only half the battle. If the counterparty’s main assets are in mainland China, you still need to turn that judgment into recovery on the ground. China has its own civil procedure rules and a relatively conservative approach to recognizing and enforcing foreign judgments, which makes planning and execution critical.This article is written for foreign companies and their counsel who have already obtained, or are considering obtaining, a judgment outside China and wish to understand whether and how it can be enforced against assets located in China.
The Legal Framework for Recognizing Foreign Judgments in China
1. Treaties and Reciprocity
Chinese courts can recognize foreign civil and commercial judgments mainly under two bases:
- Bilateral or multilateral treaties on mutual recognition and enforcement of judgments; or
- Principle of reciprocity: where there is a precedent or clear practice that the foreign country has recognized Chinese judgments, or Chinese courts are otherwise satisfied that reciprocity exists.
If neither treaty nor reciprocity can be established, recognition is unlikely. Before starting any procedure, counsel should check whether China has an applicable treaty with the country where the judgment was issued and whether there are relevant precedents.
2. Scope of Recognizable Judgments
Generally, Chinese courts may recognize:
- Final and effective civil or commercial judgments
- Judgments rendered by competent courts in the foreign country
- Judgments that do not violate China’s basic legal principles, sovereignty, or public order
Criminal judgments and administrative decisions normally fall outside this scope, although the civil compensation part of a criminal judgment may be considered in some cases.
3. Grounds for Refusal
Typical grounds for refusal include:
- Lack of jurisdiction of the foreign court under Chinese standards
- The defendant was not properly summoned or able to participate in the proceedings
- The case has already been tried by a Chinese court or is pending in China (lis pendens / res judicata)
- The judgment contradicts basic principles of Chinese law or harms public interests
Step-by-Step Procedure to Enforce a Foreign Judgment in China
Step 1: Preliminary Assessment and Asset Check
Before filing, conduct a legal feasibility assessment and asset investigation:
- Confirm whether there is a treaty or reciprocity basis
- Review the judgment in detail, including service records and jurisdiction grounds
- Identify the debtor’s assets in China: bank accounts, real estate, equity interests, receivables, etc.
At this stage, working with a China-based team that can perform discreet due diligence and asset tracing can significantly increase your chances of actual recovery.
Step 2: Prepare Application Materials
The applicant must usually submit to the competent Chinese court:
- Application for recognition and enforcement
- Original or certified copy of the foreign judgment
- Documents proving that the judgment is final and effective
- Evidence of proper service on the defendant in the foreign proceedings
- Certified Chinese translations of all key documents
Notarization and legalization (often via consular authentication or apostille, as applicable) are typically required. It is important to leave time for these formalities.
Step 3: Filing with the Competent Intermediate People’s Court
Foreign judgment cases are normally handled by Intermediate People’s Courts with geographic jurisdiction over:
- The debtor’s domicile or habitual residence in China; or
- The location of major assets to be enforced against.
The court will first examine whether to recognize the judgment. Only after recognition will the court proceed to enforcement procedures similar to those for domestic judgments.
Step 4: Recognition Decision
The court may:
- Decide to recognize and allow enforcement;
- Refuse recognition based on statutory grounds; or
- Recognize the judgment but limit enforceability to certain parts.
The recognition decision itself may be subject to internal review and, in some cases, external supervision. Timelines can vary widely between courts and regions.
Step 5: Enforcement Measures
Once recognized, the judgment can be enforced through typical Chinese enforcement measures, including:
- Freezing and seizing bank accounts
- Seizing and auctioning movable and immovable property
- Freezing and transferring equity interests
- Restrictions on the debtor’s high‑value consumption and travel
Effective enforcement in practice often depends on how thoroughly assets were identified and how strategically applications for preservation measures are made.
Practical Tips for Foreign Companies and Counsel
- Plan for enforcement before suing: If the debtor’s main assets are in China, consider whether an arbitral award or a judgment from a treaty partner jurisdiction may provide smoother enforcement.
- Keep clean records on service and jurisdiction: Chinese courts will look closely at whether the defendant had a fair chance to participate.
- Act quickly: Statutes of limitation and practical difficulties can increase with time as assets are moved or dissipated.
- Coordinate closely with local counsel: Differences in language and procedure make local expertise critical.
How Our Firm Assists with Foreign Judgment Enforcement in China
Our team helps overseas companies and law firms:
- Evaluate enforceability prospects of foreign judgments in China
- Conduct targeted asset searches and debtor investigations
- Prepare the application dossier and manage notarization and legalization
- Represent clients before Chinese courts throughout recognition and enforcement
- Coordinate with foreign counsel to align cross‑border strategy
If you hold a foreign judgment against a counterparty with assets in China, you can contact our China enforcement team for an initial assessment of your options.