The Test

Recognition and enforcement of a foreign judgment in China sits between two principles: judicial sovereignty and international mutual trust. In the absence of a treaty, Chinese courts apply the reciprocity test — whether the foreign state would recognise a Chinese judgment on comparable terms — together with review of jurisdiction, finality, proper service and public policy.

Grounds for Refusal

A court will decline where the foreign court lacked jurisdiction on Chinese rules; where the defendant was not properly served and did not appear; where the judgment is not final or was obtained by fraud; or where enforcement would contravene Chinese public policy or the fundamental principles of Chinese law.

Practical Route

Where the judgment cannot be recognised, the creditor is not without remedy: a fresh action on the underlying debt may be brought in a Chinese court, with the foreign judgment used as evidence. Choosing between recognition and re-litigation is a commercial decision as much as a legal one.