Meaning
A procedural classification under civil law governs disputes where one or more parties or legal facts are located outside mainland China. In these disputes, foreign related litigation requires adherence to specialized civil procedure rules. Chinese courts apply distinct choice of law principles to determine the substantive laws that govern.
Jurisdictional Challenge
Legal defenses often center on the validity of dispute resolution clauses in international agreements. When a foreign party is involved, foreign related litigation is subject to jurisdictional challenges if the contract specifies arbitration in a foreign seat or litigation in a non-Chinese court. Chinese judges will refuse to hear a case if the party can prove the existence of an exclusive foreign jurisdiction agreement that does not violate the public interest of China.
Notarisation Requirement
Procedural hurdles are higher because of the strict verification standards applied to foreign evidence. Foreign related litigation requires all powers of attorney, board resolutions, and corporate registration documents executed outside China to be notarized in the originating country and certified by the Chinese embassy or consulate there. This tedious process ensures that Chinese courts only accept genuine and authorized representations, although it adds weeks to the preparation of a lawsuit.
Service Limitation
Court timelines are significantly extended by the administrative challenges of notifying overseas defendants. In cases of foreign related litigation, the standard civil procedure limits for service do not apply, and courts use methods like consular channels, mail with return receipt, or public announcements if a party has no office in China. This prolonged service period means that a dispute can remain pending for months before the first hearing occurs.
Consequently, the defense can use these delays to secure asset preservation exemptions or reallocate funds before a mainland judgment can be rendered or executed.
