You've won an arbitration award against a Chinese company. Now what? Enforcing that award in China requires navigating the Chinese court system. Here's what you need to know.
The New York Convention Advantage
China is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. This means arbitration awards from other signatory countries (most major economies) can be enforced in China.
Key Point: This is why arbitration is often preferred over litigation for international disputes. Foreign court judgments are generally NOT enforceable in China, but foreign arbitration awards are.
Types of Awards
The enforcement process differs based on where the award was made:
- Foreign awards: Made outside mainland China (e.g., Singapore, London, Paris) — enforced under New York Convention
- Hong Kong/Macau awards: Special arrangements apply
- Domestic awards: Made in mainland China — enforced under domestic law
The Enforcement Process
Step 1: Identify the Correct Court
File your application with the Intermediate People's Court where:
- The debtor is domiciled, OR
- The debtor's property is located
Step 2: Prepare Your Application
Required documents include:
- Application for recognition and enforcement
- Original or certified copy of the arbitration award
- Original or certified copy of the arbitration agreement
- Chinese translations of all documents (certified)
- Notarization and legalization of foreign documents
- Evidence of the debtor's assets in China (helpful but not required)
Step 3: Court Review
The court will review whether to recognize the award. They can only refuse recognition on limited grounds specified in the New York Convention:
- Invalid arbitration agreement
- Lack of proper notice or opportunity to present case
- Award beyond scope of arbitration agreement
- Improper tribunal composition or procedure
- Award not yet binding or set aside
- Subject matter not arbitrable under Chinese law
- Enforcement would violate Chinese public policy
Step 4: Enforcement
Once recognized, the award is enforced like a Chinese court judgment. Enforcement measures include:
- Bank account seizure
- Property seizure and auction
- Restrictions on the debtor
Timeline
The recognition process typically takes 2-6 months. Actual enforcement depends on the debtor's assets and cooperation.
Important Considerations
Time Limit
You must apply for enforcement within 2 years of the award becoming effective. Don't delay.
Prior Reporting System
Chinese courts must report to the Supreme People's Court before refusing to recognize a foreign arbitration award. This provides an additional check against improper refusals.
Asset Investigation
Before or during the process, investigate the debtor's assets. Knowing where assets are located helps you choose the right court and improves enforcement prospects.
Interim Measures
You can apply for asset preservation (freezing) to prevent the debtor from hiding assets during the recognition process.
Challenges You May Face
- Document requirements: Strict requirements for notarization and legalization
- Translation issues: Poor translations can cause delays
- Asset hiding: Debtors may try to move assets
- Local protectionism: Less common now but still possible in some areas
- Debtor insolvency: Can't collect from an empty company
Tips for Success
- Act quickly — don't let the 2-year deadline approach
- Investigate assets before filing
- Consider asset preservation measures
- Ensure documents are properly prepared
- Work with experienced local counsel
Have an Award to Enforce?
I can help you navigate the enforcement process in Chinese courts. Free initial consultation.
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