China has been a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) since 1987. In principle, a foreign arbitral award can be recognised and enforced in China, but the application must be made to the right court with the right documents and within the applicable time limit.
Legal basis and reservations
China applies the New York Convention on the basis of reciprocity and limits it to commercial disputes. The award must be made in another contracting state, and the arbitration agreement and the subject matter must fall within the Convention's scope. An award from a non-contracting state or a non-commercial matter needs a different analysis.
China has also made a reservation concerning the form of the arbitration agreement. In practice, the applicant should provide the original arbitration agreement or a certified copy, together with a translation where required.
Which court to apply to
Applications are generally made to the intermediate people's court in the place where the respondent is domiciled or where its property is located. The court then follows the internal reporting procedure for recognition and enforcement cases. The location of assets matters, so investigate the respondent's bank accounts, property and equity holdings before filing.
If the respondent has no domicile or property in China, enforcement may not be possible in China even if the award is valid. Consider enforcement in another jurisdiction where assets are located.
Documents to prepare
- The original award or a certified copy.
- The original arbitration agreement or a certified copy.
- Certified translations into Chinese.
- Proof of the respondent's identity and address.
- Evidence of the respondent's assets in China, where available.
- A power of attorney and the applicant's corporate documents.
Translations should be accurate and consistent with the award. A translation error in a party name or an operative paragraph can cause delays and requests for correction.
Time limits and objections
The application for enforcement of an arbitral award is generally subject to a two-year limitation period. The starting point depends on the terms of the award and the circumstances, so calculate it carefully and do not rely on the date of the arbitration alone.
The respondent may oppose enforcement on grounds such as a defective arbitration agreement, lack of notice, the tribunal exceeding its authority, an irregular composition of the tribunal, or a conflict with Chinese public policy. Public policy objections are interpreted narrowly, but they are still raised, particularly in cases involving licensing, competition or state interests.
Practical steps
- Review the award, the arbitration agreement and the seat of arbitration.
- Identify the respondent's assets and the competent court.
- Prepare the certified documents and Chinese translations.
- File the recognition and enforcement application.
- Respond to the court's questions and any objection from the respondent.
- Move to execution once the court grants enforcement.
Enforcement is a separate phase from the arbitration. A favorable award is only the starting point; asset information and local procedural knowledge usually determine whether the award is recovered.