{"id":143336,"date":"2026-07-10T11:10:30","date_gmt":"2026-07-10T11:10:30","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=143336"},"modified":"2026-07-10T11:10:30","modified_gmt":"2026-07-10T11:10:30","slug":"china-litigation","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/china-litigation\/","title":{"rendered":"China: Litigation"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-143336","comparative_guide","type-comparative_guide","status-publish","hentry","guides-litigation","jurisdictions-china"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Beijing Dacheng Law Offices, LLP (Shanghai)<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/06\/dentons-1-logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Beijing Dacheng Law Offices, LLP (Shanghai)<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/06\/dentons-1-logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Litigation laws and regulations applicable in China<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main methods of resolving disputes in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In China, commercial disputes are primarily resolved through a diversified dispute resolution model. The core methods include negotiation, commercial mediation, commercial arbitration, and commercial litigation.<\/p>\n<p>Parties may first attempt to resolve disputes through negotiation, which saves time and effort. Commercial mediation, conducted by professional mediation organizations, offers flexible procedures and strong confidentiality; once the mediated agreement is confirmed by a court, it becomes enforceable. Commercial arbitration requires a valid arbitration agreement concluded in advance, adopts a final and binding award system, and features confidentiality, high professionalism, and strong applicability to cross-border disputes. Commercial litigation, as the ultimate judicial remedy, does not require prior agreement and follows a two-instance, final adjudication system. Court judgments are legally binding and enforceable, with procedures that are open and standardized.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main procedural rules governing litigation in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Commercial litigation in China is primarily governed by the Civil Procedure Law and its supporting judicial interpretations as the basic procedural rules, with reference to the Minutes of the National Conference on the Trial of Commercial Cases and special provisions on foreign-related commercial adjudication. Special commercial cases such as bankruptcy and negotiable instruments are subject to their respective special statutes as a matter of priority.<\/p>\n<p>Litigation follows fundamental systems such as the two-instance final adjudication system, the withdrawal system, and open hearings, and is divided into ordinary procedures, summary procedures, and small claims procedures. The procedural flow includes case filing, evidence production, court hearings, and judgment. A party dissatisfied with a first-instance judgment may appeal to the next higher level court within 15 days, or within 10 days for three types of rulings prescribed by law, and the second-instance judgment is final.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the structure and organisation of local courts dealing with claims in your jurisdiction? What is the final court of appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In China, local courts are established according to administrative divisions at three levels: basic, intermediate, and higher. These are supplemented by various specialized courts, together forming the litigation trial system. Basic courts have jurisdiction over the majority of first-instance commercial cases. Intermediate courts hear appeals from basic courts and serve as courts of first instance for major or complex cases. Higher courts hear appeals from intermediate courts and serve as courts of first instance for significant cases within the province. China adopts a two-instance, final adjudication system, meaning that the second-instance judgment in ordinary commercial cases is final.<\/p>\n<p>The Supreme People&#8217;s Court is the highest final appellate court in the country, with several circuit courts established to facilitate operations in different regions. The Supreme People&#8217;s Court primarily hears retrials of cases in which parties challenge judgments rendered by higher courts as second-instance decisions, as well as major and difficult appeals and first-instance cases of national significance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How long does it typically take from commencing proceedings to get to trial in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In commercial litigation in China, the duration from filing a complaint to the court hearing depends on the applicable procedure and the specific circumstances of the case. After the filing materials are complete, the court shall complete the case filing review within seven days. Thereafter, the court shall serve the relevant documents and allow time for the submission of the statement of defense and the evidentiary production period. For relatively simple commercial cases subject to the summary procedure, the process is streamlined and the hearing is scheduled more quickly; a hearing may typically take place around one month after the case is filed.<\/p>\n<p>In more complex or highly disputed cases subject to the ordinary procedure, the process is more rigorous, and due to court scheduling pressures, a hearing generally takes two to three months. Where special circumstances arise\u2014such as the defendant being untraceable and requiring service by public announcement, a party applying for expert evidence evaluation, or a challenge to jurisdiction\u2014the timeline may be significantly extended, often to three to six months or even longer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are hearings held in public and are documents filed at court available to the public in your jurisdiction? Are there any exceptions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In China, court hearings in commercial litigation hearing are fundamentally open to the public as a basic principle. Members of the public may observe hearings in accordance with relevant regulations, and information regarding such hearings is duly announced in advance as required by law. There are two types of exceptions. Cases involving state secrets or personal privacy are by law closed to the public in their entirety. In commercial cases involving trade secrets, the parties may apply to the court for a closed hearing, and the court shall examine and decide on such application. In all cases, the adjudicative phase is conducted openly. Court records of litigation are subject to a tiered access system.<\/p>\n<p>The public may access redacted effective judgments through official platforms, under which information involving secrets or privacy is legally concealed. Mediation agreements are generally not made public. The complete case file may only be accessed and copied by the parties to the case and their authorized representatives, and ordinary members of the public are not entitled to inspect such files.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the relevant limitation periods in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In commercial litigation in China, the limitation periods are primarily governed by the Civil Code. The general limitation period is three years, which applies to the vast majority of commercial disputes, including those arising from commercial contracts, claims for debts, commercial torts, and unjust enrichment. This period commences from the date on which the right holder becomes aware or ought to have become aware of both the infringement of their rights and the identity of the obligor.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the pre-action conduct requirements in your jurisdiction and what, if any, are the consequences of non-compliance?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In China&#8217;s commercial litigation, there are clear pre-action conduct requirements, including: proper application for pre-litigation property preservation and evidence preservation, adherence to the principle of good faith in litigation, legally preserving and maintaining evidence. Failure to comply with pre-action requirements may result in multiple legal consequences. Violations concerning preservation measures may lead to the discharge of such measures and liability to compensate the other party for economic losses. Acts such as initiating false litigation, bad faith claims, or obstructing evidence production may result in a court admonition, a fine, or judicial detention.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are proceedings commenced in your jurisdiction? Is service necessary and, if so, is this done by the court (or its agent) or by the parties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In commercial litigation, proceedings are initiated by the plaintiff submitting to the court with competent jurisdiction a statement of claim, evidence, and other relevant documents. Upon review and approval by the court and payment of the court fees, the case is formally filed, and the litigation proceedings are deemed commenced. Service of legal documents is required throughout the entire litigation process and constitutes a mandatory procedural step. Failure to effect lawful service will result in procedural defects. Service of documents is uniformly carried out by the court and its authorized personnel. The parties are not obligated to effect service of legal process. While parties may voluntarily exchange documents among themselves, such exchanges do not constitute judicial service and carry no legal effect as service of process.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the court determine whether it has jurisdiction over a claim in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>To determine jurisdiction over commercial litigation, the court first applies the rules of hierarchical jurisdiction to allocate the proper level of adjudication. Ordinary cases are heard by basic-level courts, while cases involving large monetary amounts, significant cross-border elements, or complexity fall under the jurisdiction of intermediate courts or above. As to territorial jurisdiction, the general principle is that the plaintiff follows the defendant. In contract disputes, jurisdiction may be established either at the defendant&#8217;s domicile or at the place of contractual performance. In commercial tort cases, jurisdiction lies at the defendant&#8217;s domicile or the place where the tortious act occurred. Exclusive jurisdiction has the highest effect, takes priority over other rules, and excludes their application. Where a commercial contract contains a valid written agreement designating a competent court, and such agreement does not violate the rules of hierarchical or exclusive jurisdiction, the court shall abide by the agreed jurisdiction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the court determine which law governs the claims in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Domestic commercial litigation uniformly applies the substantive laws of Mainland China. For foreign-related commercial disputes, the determination of the applicable law follows a fixed hierarchy. First, the law expressly and lawfully chosen by the parties shall be respected, provided that such choice does not contravene the mandatory provisions of Chinese law or jeopardize public interest. Where the parties have made no such choice, the applicable law shall be determined in accordance with the principle of the closest connection, taking into account factors such as the nature of the dispute, the transactional conduct, and the place of performance. For commercial contracts in which Chinese law explicitly provides for mandatory application, the laws of China shall prevail. International commercial treaties that have been concluded and entered into force for China shall take precedence over domestic laws. Where the application of foreign law is required, the relevant parties shall bear the burden of ascertaining its content. If the foreign law cannot be duly ascertained, or if its application would harm the public interest of China, the court shall directly apply Chinese law to adjudicate the case.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what circumstances, if any, can claims be disposed of without a full trial in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In commercial litigation, a case may be concluded without a full court hearing under various circumstances. Cases with clear facts and minor disputes may be subject to summary procedures or expedited procedures, which streamline the hearing process. Small claims cases that meet the statutory criteria may be resolved quickly through simplified procedures. Where the parties have reached a mediation agreement before or during litigation, and such agreement has been confirmed by the court, the case may be concluded directly without the need for a hearing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the main types of interim remedies available in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In commercial litigation in China, there are four main types of interim relief available for application. The first is property preservation, which includes both pre-litigation and mid-litigation preservation. Through means such as seizure, freezing, and attachment, the court controls the counterparty&#8217;s assets to prevent asset transfer and ensure the enforcement of the judgment. Security is generally required for such applications. The second is act preservation, under which a party may apply for a court order compelling or prohibiting the counterparty from taking specific actions, thereby promptly stopping breaches of contract or tortious conduct and preventing irreparable harm. The third is evidence preservation, which allows for the early fixation and retention of commercial evidence that is perishable or difficult to obtain, thereby safeguarding the ability to present evidence. The fourth is advance execution, which permits the court to order the counterparty to perform certain obligations before a final judgment is rendered, where the rights and obligations are clear and the performance is urgently needed for business operations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">After a claim has been commenced, what written documents must (or can) the parties submit in your jurisdiction? What is the usual timetable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>After a commercial case is filed, the parties must submit documents including proof of the party&#8217;s identity, legal representative documentation, power of attorney for authorized representatives, confirmation of service address, and complete evidence materials. The plaintiff must pay the litigation fees within the prescribed time. The defendant must file a statement of defense within the statutory period. Documents that may be voluntarily submitted include written materials concerning jurisdictional objections, applications for preservation, applications for investigation and evidence collection, applications for judicial expert evaluation, amendments to claims, and mediation proposals. The typical procedure and timeline are as follows: court fees shall be paid within seven days after filing; the court shall serve procedural documents within five days; the defendant shall have fifteen days to submit a statement of defense. Thereafter, the evidentiary period will be set, followed by the organization and exchange of evidence, and then the scheduling of the hearing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the rules for disclosure of documents in your jurisdiction? Are there any exceptions (e.g. on grounds of privilege, confidentiality or public interest)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Commercial litigation in China does not adopt a comprehensive discovery system as seen in foreign jurisdictions. Instead, a limited document disclosure rule applies, primarily taking the forms of pre-trial evidence exchange, orders for production of documentary evidence, and court-facilitated evidence collection upon party application. Parties are only required to submit evidence materials relevant to the facts of the case and shall not intentionally conceal or destroy evidence.<\/p>\n<p>Several exceptions to disclosure exist. Materials involving state secrets or harming the public interest are legally prohibited from disclosure. Evidence containing trade secrets or personal privacy may be subject to applications for closed-door examination with protective measures in place. Communications between lawyers and their clients concerning litigation negotiation and legal opinions are protected by privilege and need not be submitted. Documents subject to statutory professional confidentiality obligations may also be subject to restricted disclosure. The court may exercise reasonable discretion based on the specific circumstances of the case to balance the protection of lawful secrets and the fairness of the litigation, thereby safeguarding the evidentiary rights of both parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is witness evidence dealt with in your jurisdiction (and in particular, do witnesses give oral and\/or written evidence and what, if any, are the rules on cross-examination)? Are depositions permitted?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In China, commercial litigation applies the rules of evidence under the Civil Procedure Law. Witness testimony is generally given orally in court as a matter of principle. Only under statutory justifiable reasons such as health issues, long distance, or force majeure, and with court approval, may exceptions such as written statements or audio-visual transmission be permitted. A witness who refuses to appear in court without justifiable reason shall not have their testimony serve as the basis for adjudication.<\/p>\n<p>During trial examination of evidence, cross-examination is conducted under the direction of the judge, following the sequence of direct examination, cross-examination, and re-direct examination. During direct examination by the party calling the witness, leading questions are prohibited. During cross-examination by the opposing party, questions may appropriately target the truthfulness of the testimony and the credibility of the witness, while irrelevant, insulting, or repetitive questions are prohibited.<\/p>\n<p>Out-of-court deposition records prepared by the parties or their lawyers may be submitted to the court. Such records constitute hearsay evidence and carry relatively low probative value; they cannot substitute for in-court testimony and may only serve as auxiliary evidence. Out-of-court investigation records prepared by the court in accordance with the law carry greater evidentiary weight, but still cannot completely replace witness appearance in court. Ultimately, the admissibility and weight of evidence must be assessed comprehensively based on all evidence in the case.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is expert evidence permitted in your jurisdiction? If so, how is it dealt with (and in particular, are experts appointed by the court or the parties, and what duties do they owe)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In commercial litigation in China, parties are permitted to retain expert assistants to appear in court and provide professional opinions, who are distinct from judicial expert evaluators. Expert assistants are engaged by the parties themselves and bear their own costs; the court does not appoint them. The court only designates judicial expert evaluation institutions and evaluators in accordance with procedural rules. The party must submit a written application to the court within the evidentiary period, attaching documentation of the expert&#8217;s professional qualifications, and may appear in court only after court approval. Expert assistants are limited to providing professional opinions on case-specific technical issues or evaluation reports.<br \/>\nExperts appearing in court have the obligation to provide truthful and objective professional opinions, strictly observe courtroom discipline, speak only within the scope of their expertise, and maintain confidentiality regarding case-related matters. They shall not participate in factual debates or other courtroom activities unrelated to their expertise, and must follow the court&#8217;s direction. Any non-compliant statements will not be admitted by the court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can final and interim decisions be appealed in your jurisdiction? If so, to which court(s) and within what timescale?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuant to Article 10 of the Arbitration Law of the People&#8217;s Republic of China and Articles 47, 48 and 49 of the Mediation and Arbitration Law of the People&#8217;s Republic of China for Labor Disputes, a final arbitral award in commercial arbitration is not appealable and takes effect upon issuance. With respect to final awards in labor arbitration, only the employee may file an action in the basic-level court within fifteen days from the date of receipt of the award.<\/p>\n<p>Pursuant to Articles 157 and 171 of the Civil Procedure Law of the People&#8217;s Republic of China, only the following rulings are appealable: rulings rejecting a complaint, rulings on jurisdictional objections, and rulings dismissing the action. An appeal against such a ruling shall be filed within ten days from the date of service of the ruling to the next higher level people&#8217;s court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the rules governing enforcement of foreign judgments in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In commercial litigation in China, the enforcement of foreign commercial judgments in Mainland China shall, as a priority, be handled in accordance with bilateral judicial assistance treaties between China and the relevant foreign country.In the absence of such a treaty, the principle of reciprocity applies. The party seeking enforcement shall file an application for recognition and enforcement with the intermediate people&#8217;s court at the place where the judgment debtor is domiciled or where its assets are located.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the costs of litigation (e.g. court costs, as well as the parties\u2019 costs of instructing lawyers, experts and other professionals) be recovered from the other side in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In civil litigation in China, the official court costs, including case acceptance fees and application fees, are governed by the Measures for the Payment of Litigation Costs. In principle, such costs shall be borne by the losing party, and the prevailing party may recover them in full from the opposing party in accordance with the law. In cases of partial success, the court shall apportion the costs between the parties based on their respective proportions of liability.<\/p>\n<p>As for attorneys&#8217; fees, expert consultation fees, and other privately incurred legal and professional expenses, the general rule is that each party bears its own such costs, and they cannot be directly recovered from the opposing party. However, exceptions exist where the parties have expressly agreed in a contract that the breaching party shall bear the reasonable costs of enforcement, or where the law explicitly provides otherwise.<br \/>\nJudicial expert evaluation fees and necessary expenses incurred for witness testimony are considered part of the litigation costs and are subject to the general rule that the losing party bears such costs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the collective redress (e.g. class action) mechanisms in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>China has established a multi-layered and diversified collective redress system, which serves as the primary means of resolving group commercial disputes. Among these, representative actions are the core redress mechanism, consisting of ordinary representative actions and special securities representative actions. The former applies to group disputes involving ten or more persons and follows an opt-in rule. The latter is a unique collective rights protection model in China, initiated by investor protection institutions, and adopts an opt-out rule (with implied participation unless express opt-out is made). It is widely applicable to securities infringement disputes, offering broad coverage and low thresholds for rights protection.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the mechanisms for joining third parties to ongoing proceedings and\/or consolidating two sets of proceedings in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In commercial litigation in China, there are two types of mechanisms for third-party participation and case consolidation. With respect to third-party joinder, third parties are divided into two categories: those with independent claims to the subject matter of the action, and those without independent claims. A third party with independent claims may proactively apply to participate in the litigation to assert its substantive rights. A third party without independent claims, whose legal interests may be affected by the outcome of the case, may either apply to join on its own initiative or be notified by the court ex officio to participate.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are third parties allowed to fund litigation in your jurisdiction? If so, are there any restrictions on this and can third party funders be made liable for the costs incurred by the other side?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In China, commercial litigation does not explicitly prohibit third-party litigation funding. The principle that what is not prohibited by law is permitted applies. However, judicial practice has been cautious. Some courts have held relevant funding agreements void on grounds such as violation of public policy, disguised maintenance of litigation, or exceeding the statutory cap on contingency fees. In commercial arbitration, third-party funding has been expressly recognized, and disclosure obligations have been established.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the main advantage and the main disadvantage of litigating international commercial disputes in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Conducting international commercial litigation in China presents distinct advantages and disadvantages. The greatest advantages lie in the strong judicial credibility and the mature and structured trial system. China has established specialized international commercial courts, and the judges are well-versed in cross-border legal matters and commercial practices, ensuring a well-organized and orderly trial process. In addition, the overall cost of litigation is relatively low, significantly lower than the cost of arbitration outside China. Domestic measures for property preservation and evidence collection are comprehensive, effectively safeguarding the lawful rights and interests of parties within China. Foreign and domestic litigants are treated equally, the adjudicative process is fair and transparent, and domestic judgments are enforced efficiently and conveniently. The greatest disadvantages are primarily related to the realization of cross-border rights and interests. Litigation is conducted primarily in Chinese, the process of ascertaining foreign laws is cumbersome, and the service of process on parties located outside China takes considerable time.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the most likely growth area for commercial disputes in your jurisdiction for the next 5 years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Over the next five years, driven by industrial upgrading, regulatory refinement, and increasingly stringent market supervision, commercial disputes in China are expected to see concentrated growth in several emerging areas. The first is the digital economy and artificial intelligence sector, where disputes concerning AI copyright ownership, algorithmic torts, data transactions, and cross-border data transfer will continue to increase. At the same time, as antitrust regulation becomes routine, disputes involving platform operations, commercial bribery, and concentrations of undertakings continue to rise. Following the full implementation of the new Company Law, disputes concerning corporate governance, shareholder capital contributions, performance of duties by directors and senior officers, and validity of corporate resolutions are expected to surge significantly. In addition, disputes in cross\u2011border trade, overseas investment, and cross\u2011border intellectual property rights are steadily increasing as a result of international economic and trade conditions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, will be the impact of technology on commercial litigation in your jurisdiction in the next 5 years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Over the next five years, cutting-edge technologies such as artificial intelligence, blockchain, and big data will profoundly and comprehensively impact the development of commercial litigation in China. The entire litigation process will become increasingly digitalized. Online case filing, online hearings, and electronic service will become widely available. Intelligent case-handling systems will assist in legal research, dispute analysis, and document drafting, greatly improving the efficiency of case adjudication and enforcement.<\/p>\n<p>At the same time, technology-driven business models will give rise to numerous new types of commercial disputes, including those concerning AI copyright ownership, algorithmic torts, data compliance, and digital finance. These emerging cases will compel judicial authorities to accelerate the development of corresponding adjudicative rules.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4037<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/143336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=143336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}