Dispute Resolution

Recently released judicial interpretations from the Supreme People's Court of China further clarify a number of uncertainties often faced by Chinese companies (including foreign-invested enterprises), their shareholders and creditors in common disputes related to establishment, capital contribution and shareholder rights

Last year, the PRC Supreme People's Court adopted a consistent approach to conflicts involving the establishment and modification of foreign-invested enterprises. However, uncertainties remain on various issues of remedies and dormant shareholders

NPC Standing Committee clarifies when a foreign law would apply to a foreign-related civil relationship.

The codification of China's civil law took a big step forward with Beijing's release of its hallmark statute on conflict rules. The government is now more flexible in dealing with foreign-related civil relationships, but party autonomy limitations are likely to affect judicial practice

This Law has been formulated in order to clarify the application of laws to foreign-related civil relationships, rationally resolve foreign-related civil disputes and safeguard the lawful rights and interests of concerned parties.

Scope of eligible employment disputes enlarged.

The Interpretation enlarges the scope of eligible employment disputes and gives workers the burden of proof for overtime pay.

The landmark Ningbo decision last year saw China – for the first time and through the Zhejiang court – enforce two PRC-seated awards granted by a foreign arbitral institution. Here, the case handler analyses the arbitration proceeding, offers insights and ponders the possibility of non-Chinese arbitration institutions being able to administer in China

Contracts not yet approved are still valid.