How Can Foreign Arbitration Awards Be Recognized and Enforced in China?

The most important basis for courts of various countries to recognize and enforce foreign arbitration awards is the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) signed in New York in 1958. The Convention stipulates the standards for recognition and enforcement of foreign arbitration awards and the conditions for non-recognition and enforcement. Now, there are more than 150 contracting states, which provides guarantee and convenience for the recognition and enforcement of foreign arbitration awards, and promotes the further development of international commercial arbitration activities.

China joined the New York Convention in 1986 and the Convention entered into force for China on April 22, 1987. At the same time, in 1987, China issued the Notice of the Supreme People’s Court on Implementing the Convention on the Recognition and Enforcement of Foreign Arbitral Awards Acceded to by China, and the Notice of the Supreme People’s Court on the People’s Court’s Handling of Issues Related to Foreign Arbitration, which made it clear that China has made reciprocal and commercial reservations to the Convention, and has made provisions on the court with jurisdiction and time limit for application for enforcement of foreign awards. It is stipulated that each court must report to the higher people’s court of its jurisdiction for review before deciding not to enforce or refusing to recognize and enforce a foreign arbitration award. If the higher people’s court agrees not to enforce or refuses to recognize and enforce, it shall report its review comment to the Supreme People’s Court. Only after the Supreme People’s Court gives a reply, can it make a ruling not to enforce or refuse to recognize and enforce. In 1998, the Supreme People’s Court issued the Provisions of the Supreme People’s Court on the Issue Concerning the Fee Collection and the Period of Review for the Recognition and Enforcement of Foreign Arbitral Awards, which clarified the issues concerning the fee collection and the period of review for the recognition and enforcement of foreign arbitration awards. In addition, according to the provisions of Article 239 of the Civil Procedure Law, the period of application for enforcement is two years.