Hong Kong: Enforcing Judgments And Arbitral Awards Between Hong Kong And Mainland China

Last Updated: 8 June 2004


The line of authorities following the HK decision in Chiyu Banking Corp. Ltd. v. Chan Tin Kwun [1996] 2 HKLR 395 demonstrates the supremacy of the various political and administrative arms of the PRC over its judiciary and poses uncertainty as to the enforcement of PRC judgments in HK. In this article we will examine some of the issues involved with enforcing judgments and arbitral awards between HK and the PRC.

The PRC Legal System

The PRC legal system for resolving commercial disputes is quite different from HK's common law system and includes the following methods: -

  • Negotiation  (hejie) - under Article 51 of the PRC Civil Procedure :-(aw ("PRCCP:-("), "the two parties may reach a compromise of their own accord". However, a compromise reached under those circumstances may not have the legal effect of a judgment declared by the court. Parties therefore need to institute court proceedings if a compromise is breached.
  • Conciliation (tiaojie) - under Article 85 of the PRCCP:-(, the People's Court can "conduct conciliation between the parties on a voluntary basis". A settlement agreement reached through conciliation will be signed by the judge and sealed by the People's Court and will have the legal effect of a judgment.
  • Arbitration (domestic and CITEAC) - Under Article 16 of the PRC Arbitration :-(aw, the parties in dispute must agree to resolve their dispute through arbitration either through an arbitration clause in the commercial contract or pursuant to a subsequent written agreement. An award made under a domestic arbitration in PRC is subject to review by the court whereas an award made by CITEAC is final and the parties cannot lodge an appeal in the court or any other institution for a substantive review of the award  (Article 259 of PRCCP:-( and Article 60 of CITEAC Rules). An arbitral award can be enforced in jurisdictions that are signatories to the New York Convention.
  • Litigation - There are four levels of courts under the PRC legal system: basic, intermediate, high and supreme. Under the general trial system, any litigants have two chances to try their claims in court (the first instance and the second instance). Although described as an "appeal" to the court of second instance under the PRCCP:-(, the hearing by a court of second instance is a retrial rather than an appeal. The court of second instance is free to accept new evidence, decide new issues, make investigations and question the parties.

Enforcement of PRC judgments / arbitral awards in HK

Currently, a PRC judgment can be enforced in HK as a matter of common law if it is:

  • final and conclusive;
  • for a liquidated monetary sum;
  • of a court having competent jurisdiction;
  • not impeachable according to the rules on conflict of laws in HK

The issue of finality of a PRC judgment has been the subject of litigation in HK. Theoretically, a PRC judgment of a court of second instance is "final" and therefore should be able to satisfy the requirement of finality. In reality, a judgment of second instance can be reviewed under the Supervisory Procedure. Government bodies like the People's Procuratorate, the Supreme People's Court, the People's Congress, the Political and Legal Committee of CCP can intrude and review a judgment and there is no time limit or limit to the number of interferences. Such potential uncertainty may therefore affect a party's choice of having the dispute resolved through litigation in the PRC, in particular when one foresees the need of enforcing the judgment in HK.

Comparatively, arbitral awards rendered by CITEAC are more "final" and can be enforced in HK following the amendments to the Arbitration Ordinance in 2000.

Enforcement of HK judgments / arbitral awards in the PRC

Under Article 268 of PRCCPL, a judgment of a foreign court can be enforced in the PRC provided it does not contradict the basic principles of the law of the PRC nor violate State sovereignty, security, social and public interest of the country. It is however difficult to predict how a court will react when the enforcement subject is related to the government or a state-owned enterprise when the concept of judicial independence does not exist within a communist regime. Also, it is doubted whether under the "one country, two systems" principle, HK will be treated as foreign and whether Article 268 of PRCCPL has any application at all. In the circumstances, it remains to be seen whether HK and the PRC can reach an agreement to ensure HK judgments can be effectively enforced in the PRC.


At the moment, it seems that HK arbitral awards have the advantage of enforcement in China. In 1999, HK and the PRC signed the Arrangement Concerning The Mutual Enforcement of Arbitral Awards between the Mainland and the HKSAR. The agreement reflects the principles of the New York Convention and in essence continues the enforcement mechanisms in place prior to the handover of HK on 1 July 1997. The Supreme People's Court has subsequently issued a notice to implement the Arrangement.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions