Enforcing Foreign Commercial Arbitration Awards inside Chinese Courts
Foreign arbitral awards face high recognition yields in Chinese courts under the prior reporting system, but procedural service defects halt execution.
HKIAC Supplemental Arrangement
Meaning
Bilateral agreements between the Supreme People’s Court and the Hong Kong government facilitate the mutual enforcement of arbitral awards across different legal systems. This hkiac supplemental arrangement clarifies the procedures for requesting judicial assistance and broadens the scope of available remedies.
Interim Measure
Mainland courts now have the authority to grant property or conduct preservation orders in support of Hong Kong based arbitrations. This hkiac supplemental arrangement allows a party to secure assets in China before the tribunal reaches a final decision. Under previous rules, such assistance was restricted to cases where the arbitration took place within the mainland itself.
Judicial Review
Applications for enforcement are handled by intermediate people’s courts where the respondent resides or the property is located. Judges check whether the hkiac supplemental arrangement applies to the specific institutional rules named in the arbitration clause. If the court finds a violation of social public interest, it may refuse the application.
Procedural Flow
A party seeking relief must submit a formal application along with the original arbitration agreement and the award document. Legal representatives often coordinate between the hkiac and the relevant mainland court to ensure the paperwork meets strict formal requirements. Because the arrangement provides for a direct channel of communication, the time required for asset freezing has decreased.
This coordination involves the hkiac certifying the case before the mainland court accepts the preservation request. Such certification confirms that the case is truly administered under the designated rules.