Enforcing Foreign Arbitral Interim Measures inside Mainland Chinese Intermediate Courts
PRC Intermediate Courts enforce arbitral interim freezes under the 2019 Hong Kong Arrangement, requiring direct institutional referral and full counter-security.
Conduct Preservation
Meaning
Court order or administrative instruction designed to maintain the current state of operations or behavior during a legal dispute. In Chinese civil litigation, conduct preservation is used to compel a party to perform a specific act or to refrain from a certain behavior to prevent irreparable harm. It is frequently applied in intellectual property cases to stop the sale of infringing goods before a final judgment.
Preliminary Injunction
Preliminary injunction describes the effect of this measure on the defendant. The conduct preservation starts when a claimant provides a bond and demonstrates a likelihood of success on the merits. Judges evaluate the potential damage to both parties before issuing the ruling.
Administrative Power
Regulatory intervention happens when a government body uses this tool to protect the public interest. For example, a market regulator might use conduct preservation to halt a merger that threatens competition while an investigation is ongoing. The authority can impose fines if the entity fails to comply with the directive.
This ensures that the final decision of the regulator is not rendered moot by the actions of the participants.
Temporal Limitation
Temporal limitation restricts the duration of the order until the case is finally resolved by the court. Conduct preservation expires upon the issuance of a verdict. It is temporary.