PRC first: court recognizes foreign judgment based on reciprocity

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The Nanjing Intermediate People’s Court on 9 December 2016 handed down a decision recognizing and enforcing a civil judgment made by the Singapore High Court based on the principle of reciprocity. This is the first time that a Chinese court has recognized and enforced a Singapore commercial judgment.

PRC first court recognizes foreign judgement based on reciprocityMore significantly, this is the first time that a Chinese court has recognized and enforced a foreign court judgment based on the principle of reciprocity in the absence of a bilateral treaty for mutual recognition and enforcement of judgments.

Prior to the Nanjing IPC decision, the authors have not seen any reported cases of Chinese courts recognizing a foreign court judgment based on the principle of reciprocity. The Nanjing IPC decision indicates that Chinese courts are prepared to apply the principle of reciprocity to enforce foreign judgments in the absence of conventions or treaties. This is a positive development for parties seeking to enforce foreign judgments in China.

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Business Law Digest is compiled with the assistance of Baker McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker McKenzie by e-mailing Danian Zhang (Shanghai) at: danian.zhang@bakermckenzie.com