Can You Enforce a Foreign Court Judgment in China? A Guide

How does commercial litigation for cross-border disputes work in China?

Commercial lawsuits involving a China element are heard mainly by Intermediate People's Courts, which apply the Civil Procedure Law and SPC judicial interpretations. Foreign-related cases follow similar procedures to domestic ones, but jurisdiction, language, and evidence rules require careful planning by foreign parties.

In business disputes, China uses a tiered court system:

• Basic People's Courts - smaller, local disputes.
• Intermediate People's Courts - most foreign-related and larger commercial cases.
• Higher People's Courts & SPC - appeals, re-trials, and important guiding cases.

Key features for foreign-related litigation:

• Jurisdiction: Determined by defendant domicile, place of contract performance, location of property, or agreed forum clause (within limits under the Civil Procedure Law).
• Language: Proceedings are in Chinese; all foreign-language evidence must be translated by qualified translators.
• Evidence: Original documents or properly notarized and legalized copies are usually required, especially for overseas materials.
• Timeframe: A first-instance commercial case can take 9-18 months, plus 6-12 months on appeal, before you even reach enforcement.
• Enforcement phase: After winning a judgment, you must separately apply for enforcement by the court's Enforcement Bureau.

For many foreign investors and counterparties, the most critical phase is not winning the case but turning the judgment into cash, particularly when the debtor's assets are in mainland China. This is where China's Asset Reporting Order and rules on foreign judgment/arbitral award enforcement become decisive.

How do you enforce a judgment in China against a debtor's assets?

To enforce a judgment in China, you file an enforcement application with the court that issued the judgment or with the Intermediate People's Court where the debtor or its assets are located. The court's Enforcement Bureau then uses investigative powers, asset freezes, auctions, and now Asset Reporting Orders to recover funds.

1. Legal framework and authorities

• Core law: Civil Procedure Law of the PRC (CPL), plus multiple SPC judicial interpretations on enforcement.
• Responsible body: The Enforcement Bureau of the relevant People's Court (usually Intermediate level for foreign-related cases).
• Scope: Enforcement of Chinese court judgments, arbitral awards (domestic and foreign), and recognized foreign judgments.

2. Basic enforcement steps for a domestic judgment

1. Obtain an effective judgment - Wait until the appeal period has expired (usually 15 days for domestic parties; longer for foreign parties), or until the appellate judgment is issued. - Request a copy of the judgment/mediation document with an enforcement clause.
2. File an enforcement application - File with the court that issued the judgment, or the court where the main assets are located. - Deadline: generally 2 years from the last due date of performance stated in the judgment (subject to CPL rules on interruption/suspension of limitation).
3. Provide enforcement clues - Supply any information you have on bank accounts, real estate, equity, receivables, or movable assets. - Although the court can investigate on its own, detailed clues significantly improve outcomes.
4. Court investigates and takes measures - Use of nationwide information platforms to check bank accounts, vehicles, real estate, securities, and equity. - Freeze and seize assets; place restrictions on high consumption and travel for responsible persons of Chinese companies.
5. Asset disposal and distribution - Public auction or negotiated sale of assets through court-supervised platforms. - Distribution of proceeds to creditors according to statutory priority rules.

3. Key enforcement tools now available

• Online asset search systems: Access to banking, real estate, vehicle, securities, and equity databases across China.
• Asset freezing and seizure: Immediate measures once the court finds assets; often ex parte.
• Restrictions on legal representatives of companies: Consumption limits, travel bans, and inclusion on a public "dishonest debtors" list.
• Asset Reporting Orders: Compel debtors to disclose assets; non-compliance can trigger severe sanctions (see next section).

For foreign creditors, the challenge is often locating onshore assets and overcoming practical resistance by debtors. Combining court enforcement powers with private investigations and close monitoring of the Enforcement Bureau usually produces the best results.

What is the Asset Reporting Order in China and how does it help creditors?

An Asset Reporting Order in China is a court order requiring the judgment debtor to fully disclose its assets, income, and relevant property within a specified period. If the debtor lies, hides assets, or refuses to report, the court can impose heavy fines, detention, and even criminal liability in serious cases.

1. Legal basis and scope

• Source: Civil Procedure Law provisions on the property reporting system, plus SPC enforcement judicial interpretations.
• Who can be ordered:
  • Individual debtors
  • Legal representatives and key managers of corporate debtors
• When used: After the judgment takes effect and enforcement has been filed, especially where assets are unclear or suspected to be hidden.

2. What the debtor must disclose

The court typically orders the debtor to submit a standardized report covering:

• Bank accounts (domestic and offshore known to the debtor)
• Real estate, land use rights, and construction in progress
• Equity holdings in companies and partnership interests
• Vehicles, machinery, high-value movable assets
• Receivables, claims against third parties, and intangible assets (IP, goodwill)
• Recent transfers, gifts, or abnormal transactions

3. Sanctions for non-compliance

• Judicial fines: Monetary penalties on individuals and companies for non-reporting or false reporting.
• Judicial detention: Short-term detention for responsible individuals who refuse to cooperate.
• Criminal exposure: In extreme cases, transferring or concealing properties to avoid enforcement can trigger criminal liability under the crime of refusing to execute a judgment.
• Reputational impact: Listing on the national "dishonest debtors" platform, which affects credit, procurement eligibility, and government relations.

4. Practical use by foreign creditors

• Request the court to issue an Asset Reporting Order early in the enforcement process, especially if you have weak asset clues.
• Use the debtor's report to:
  • Identify new enforcement targets (equity, receivables, IP licenses).
  • Challenge suspicious transfers (e.g., to related parties).
  • Support follow-on actions in other jurisdictions where assets are located.
• Combine the Asset Reporting Order with:
  • Restrictions on high consumption and travel
  • Publicity of "dishonest debtor" status
  • Negotiated settlement pressure

From a strategy perspective, the Asset Reporting Order has shifted bargaining power in China enforcement. Sophisticated debtors still try to structure assets, but the personal and reputational risks for non-cooperation are now significantly higher.

How can you enforce a foreign court judgment in China?

To enforce a foreign court judgment in China, you must apply to a competent Intermediate People's Court for recognition and enforcement based on either a bilateral treaty or the reciprocity principle. If the court grants recognition, the judgment is treated like a Chinese judgment and can then enter the standard enforcement process.

1. Legal basis and overall test

• Core provisions: Articles on recognition and enforcement of foreign judgments in the Civil Procedure Law, plus the new SPC judicial interpretation on foreign judgments that came into effect in 2024.
• Two-step test:
  1. Does a treaty or reciprocity basis exist with the foreign country or court?
  2. Does the judgment satisfy procedural and substantive conditions (e.g., finality, proper notice, no violation of basic principles or public policy)?

2. Treaty route vs reciprocity route

• Treaty route:
  • China has civil and commercial judicial assistance treaties with more than 30 countries.
  • These often provide for mutual recognition and enforcement of judgments, with detailed procedures.
• Reciprocity route:
  • Used when there is no treaty.
  • Historically narrow, but SPC has relaxed the test via judicial interpretations and guiding cases.
  • Now, if a foreign court has previously recognized a Chinese judgment, or a Chinese court has previously recognized a judgment from that country, reciprocity may be found.

3. Practical steps to seek recognition and enforcement

1. Identify the competent court - Generally the Intermediate People's Court at the debtor's domicile or where assets are located. - Some large cities (Shanghai, Beijing, Shenzhen, Guangzhou) have specialized foreign-related commercial divisions.
2. Prepare the application package Typical documents include:
   • Application for recognition and enforcement (in Chinese).
   • Authenticated copy of the foreign judgment, with evidence of finality (e.g., certificate that no appeal is pending).
   • Proof of proper service in the original proceedings, especially if the debtor defaulted.
   • Certified Chinese translation of all key documents.
   • Evidence supporting the treaty or reciprocity basis (e.g., copies of treaties, foreign cases recognizing Chinese judgments, prior PRC precedents).
3. Chinese court review - The court first decides whether to recognize the judgment. - It will check:
   • Jurisdiction of the foreign court
   • Due service and right to be heard
   • Finality and enforceability in the foreign country
   • No conflicting Chinese judgment or ongoing Chinese proceedings on the same dispute
   • No violation of Chinese basic legal principles, sovereignty, or public policy
4. Issuance of a ruling - If recognition is granted, the court issues a ruling and may simultaneously order enforcement. - If recognition is refused, you cannot re-litigate the same recognition request, but you might still be able to litigate the merits in China (subject to limitation rules).
5. Enforcement phase - Once recognized, the foreign judgment is treated as a Chinese judgment. - You then proceed with enforcement as described earlier, using tools like asset freezes and Asset Reporting Orders.

4. Timeframes and success rates

• Timeframe: 12-24 months is common from filing to completion of recognition and enforcement, depending on complexity and appeals.
• Success rate: Still relatively low compared to arbitral awards, but improving for clear commercial cases with solid reciprocity or treaty basis.
• Public policy risk: High for judgments touching on competition, IP validity, securities regulation, or issues sensitive to Chinese sovereignty or social stability.

Where substantial assets are in China, it often pays to coordinate recognition efforts with parallel pressure elsewhere (for example, freezing offshore accounts or seizing receivables from third-country counterparties) to enhance settlement leverage.

Which foreign judgments are now recognized in China under the reciprocity principle?

Chinese courts have begun to recognize foreign judgments from jurisdictions such as Singapore, the UK, and certain US states based on an expanded view of reciprocity. The trend is positive, but each case is fact-specific and depends on clear evidence of reciprocal treatment and alignment with Chinese public policy.

1. Countries with judicial assistance treaties covering civil/commercial judgments

China has bilateral treaties on civil and commercial judicial assistance with a number of countries, including (non-exhaustive list):

• France, Spain, Italy
• Russia, Belarus
• Pakistan, Kuwait, UAE
• Mongolia, Vietnam, Laos, North Korea
• Some Central and Eastern European states

If your judgment comes from a treaty state, the treaty usually provides the main legal basis and procedure. These cases are generally more predictable than pure reciprocity cases.

2. Singapore: a leading reciprocity success story

• Chinese courts have recognized Singapore commercial judgments based on reciprocity, citing earlier Singaporean cases that enforced Chinese judgments.
• China and Singapore have also concluded cooperation arrangements and maintained active dialogue on mutual enforcement of commercial judgments.
• For China-Singapore disputes, creditors can realistically consider choosing Singapore courts or Singapore arbitration, with a credible path to enforcement in China.

3. United Kingdom: emerging recognition

• Chinese courts have recognized at least one UK commercial judgment on reciprocity grounds after UK courts enforced Chinese judgments.
• Judicial cooperation between China and the UK has intensified through memoranda and BRI-related initiatives, which, while not treaties, send a positive policy signal.
• For high-value contracts involving China and the UK, using English courts is now more enforceability-friendly than in the past, although still not as safe as arbitration.

4. United States: recognition in parts of the US and limited PRC precedents

• On the US side, several state courts (e.g., in California and New York) have enforced Chinese commercial judgments under state foreign judgment recognition statutes, supporting reciprocity arguments.
• On the Chinese side, courts have recognized at least one US judgment (for example, a California default judgment) based explicitly on reciprocity.
• However, there is still no uniform China-US treaty, and reciprocity analysis may differ by state, so each US judgment requires a tailored assessment of both:
  • Whether that US state has a track record of enforcing Chinese judgments, and
  • Whether any Chinese court has recognized a judgment from that state.

5. Other jurisdictions

• Hong Kong and Macau: Special regimes based on separate arrangements, with comparatively streamlined mutual enforcement of certain judgments.
• Other common law jurisdictions: Some PRC courts have started to consider precedents from jurisdictions like Australia and New Zealand where Chinese judgments have been enforced, though PRC side recognition remains limited.
• ASEAN states: The "Nanning Statement" and other regional cooperation instruments show policy support for reciprocal enforcement, but concrete PRC recognition precedents are still developing country by country.

6. How to use reciprocity strategically

• When choosing court jurisdiction in contracts, ask:
  • Has this country's court ever recognized a Chinese judgment?
  • Has any Chinese court recognized a judgment from this country?
• In your enforcement application to a PRC court, include:
  • Foreign case law showing prior recognition of Chinese judgments.
  • Any PRC cases recognizing judgments from the same country or court system.
  • Expert evidence on foreign law if necessary.
• Expect local courts to consult the SPC in novel or sensitive reciprocity cases; this can lengthen timelines but also promote consistency.

How is enforcing a foreign court judgment different from enforcing a foreign arbitral award in China?

Enforcing a foreign court judgment in China is harder and less predictable than enforcing a foreign arbitral award. China strictly applies treaty/reciprocity tests for judgments, while it applies the New York Convention for arbitral awards with narrower refusal grounds and a more pro-enforcement track record.

1. Side-by-side comparison

2. Why arbitration remains the safer choice

• New York Convention membership: China has been a member since 1987 and generally complies, especially for commercial cases.
• SPC reporting system: Lower courts must report any intended refusal to enforce a foreign-related arbitral award up the chain, which reduces arbitrary refusals.
• Familiarity: Major commercial courts see many more enforcement applications for arbitral awards than for foreign judgments and have established internal guidance.
• Flexibility: Parties can choose neutral seats like Hong Kong, Singapore, or London, and still enforce awards in China.

3. When a foreign judgment still makes sense

• The counterparty has substantial assets outside China and you view China enforcement as secondary.
• You expect to rely on a treaty state where enforceability is clearer.
• You already litigated abroad (e.g., emergency injunctive relief) and now need to explore all possible asset pools, including China.

If you are drafting new contracts involving Chinese counterparties and onshore assets, a well-structured arbitration clause, plus thought-out seat and institution selection, usually gives you the best leverage for eventual enforcement in China.

What timelines, costs, and practical hurdles should you expect in China enforcement proceedings?

Enforcement in China usually takes 6-18 months for domestic judgments and 12-24 months or more for foreign judgments, with foreign arbitral awards somewhere in between. Direct court costs in RMB are modest, but legal fees, translation, and investigation expenses can be substantial, especially in contested or asset-light cases.

1. Typical timelines

• Domestic judgment enforcement: 6-18 months, depending on asset clarity and debtor cooperation.
• Foreign arbitral award enforcement: 6-18 months from application to final enforcement order.
• Foreign court judgment recognition + enforcement: 12-24+ months, particularly when reciprocity is debated or appeals occur.

2. Approximate cost ranges (in RMB)

These numbers are indicative only and vary widely by city, court, and law firm. High-value enforcement against sophisticated debtors can significantly exceed these ranges, particularly if multiple jurisdictions are involved.

3. Common practical hurdles

• Hidden or layered ownership: Use of affiliates, nominee shareholders, or offshore structures to obscure asset ownership.
• Informal arrangements: Key value held through contracts, side letters, or de facto control, which are harder to reach through standard enforcement tools.
• Local protectionism: Some local courts may be subtly reluctant to act aggressively against large local employers or tax contributors, especially in smaller cities.
• Debtor mobility: Shifting of business operations or assets between provinces or to related entities during litigation.
• Information asymmetry: Creditors often lack real-time insight into onshore transactions and asset transfers.

4. Mitigation strategies

• File for property preservation (pre-judgment freezes) where possible, especially in arbitration in China-related disputes.
• Engage local counsel early to map asset locations and choose optimal forums (including which provincial court to approach first).
• Use a mix of public records searches, industry intelligence, and private investigations to supplement court enforcement tools.
• Consider settlement leverage: travel bans, consumption restrictions, and public "dishonest debtor" listings can create strong incentives for Chinese debtors to negotiate.

When should you hire a Chinese lawyer or cross-border disputes expert?

You should hire PRC disputes counsel or a cross-border enforcement specialist as soon as a China-connected dispute becomes serious, especially if significant assets are in mainland China. Early engagement lets you design your forum, evidence, and enforcement strategy around what Chinese courts will actually do, not just what they could do in theory.

1. Key trigger points for getting help

• Contract drafting or renegotiation:
  • Deciding between Chinese courts, foreign courts, and arbitration (and where to seat the arbitration).
  • Structuring guarantees, security, and payment terms around China enforcement realities.
• First signs of default or dispute:
  • Assessing where assets are likely to be held or moved.
  • Preparing for possible pre-judgment preservation measures in China.
• Before starting foreign litigation or arbitration:
  • Evaluating whether a foreign court judgment will be enforceable in China under treaty or reciprocity rules.
  • Considering whether to pivot toward arbitration instead.
• After winning abroad, before enforcement:
  • Mapping which PRC courts to approach for recognition and enforcement.
  • Building a factual and legal record tailored to Chinese requirements (service, finality, reciprocity evidence).

2. What a good China-side disputes team adds

• Procedural navigation: Understanding local court expectations, documentation formalities, and informal timelines.
• Reciprocity analysis: Up-to-date view of SPC interpretations and local precedents on recognition of judgments from your jurisdiction.
• Asset strategy: Identifying onshore entities, bank relationships, and vulnerable points for enforcement pressure.
• Coordination: Working with your foreign counsel to align overseas proceedings with China enforcement windows.

For mid to high-value matters, the marginal cost of specialized local advice is usually small compared to the risk of ending up with an award or judgment that you cannot monetize in China.

What are the next steps if you need to enforce a judgment or award in China?

If you already have or expect to have a judgment or award and the debtor has assets in China, you should quickly assess enforceability, secure evidence and translations, and choose the right PRC forum and enforcement tools. Parallel planning on structure, settlement, and cross-border coordination will maximize your chances of actually collecting.

1. Map the asset picture
   • List all known or suspected Chinese entities, bank relationships, and onshore projects linked to the debtor.
   • Use public corporate registries, counterparties, and industry sources to fill gaps.
2. Assess your judgment/award type
   • Foreign court judgment: check treaty/reciprocity path and potential public policy obstacles.
   • Foreign arbitral award: confirm New York Convention coverage and arbitral seat/institution details.
   • Planned dispute: reconsider whether to litigate or arbitrate with enforcement in mind.
3. Engage China-side counsel
   • Get a written, scenario-based assessment of likely recognition prospects, timelines, and costs.
   • Identify the best PRC courts for applications, considering local practice and debtor presence.
4. Prepare documentation and translations
   • Collect certified copies of judgments/awards, service records, and proof of finality.
   • Arrange sworn or qualified Chinese translations early to avoid bottlenecks.
5. Plan enforcement tools and pressure points
   • Decide whether to request property preservation, Asset Reporting Orders, and travel/consumption restrictions.
   • Coordinate with any parallel enforcement in other jurisdictions to enhance leverage.
6. Monitor and adjust
   • Stay in active contact with the Enforcement Bureau handling your case.
   • Be ready to negotiate structured settlements when enforcement pressure begins to bite.

Approaching China-related disputes through an enforcement-first lens - especially the choice between court litigation and arbitration, and understanding reciprocity and Asset Reporting Orders - will significantly improve your chances of converting legal wins into recovered cash.