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.
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
New provisions from the Supreme People's Court demonstrate the government's cognisance of the increasing complexity in settling disputes involving foreign-invested enterprises.
The Provisions address the issues of the application of law concerning disputes arising in the course of the establishment, the modification, etc. of foreign-invested enterprises, which mainly include the validity of contracts without approval and its legal consequences, equity confirmation, equity transfers and equity pledges.