Why China Court Would Recognize and Enforce Foreign Judgment and Arbitral Award?

International Trade

Friday, 17 February 2012 02:36

There are numerous reasons why court would like to recognize and acknowledge foreign judgment and arbitration decisions in China. We believe that at least five policies are important: a desire to avoid the duplication of effort and consequent waste involved in reconsidering a matter that has already been litigated; a related concern to protect the successful litigant, whether plaintiff or defendant, from harassing or evasive tactics on the part of his previously unsuccessful opponent; a policy against making the availability of local enforcement the decisive element, as a practical matter, in the plaintiff's choice of forum; an interest in fostering stability and unity in an international order in which many aspects of life are not confmed to any single jurisdiction; and, in certain classes of cases, a belief that the rendering jurisdiction is a more appropriate forum than the recognizing jurisdiction, either because the former was more convenient or because as the predominantly concerned jurisdiction or for some other reason its views as to the merits should prevail. Whatever reason is, it is very good for foreign judgment or arbitration award creditor to seek recognition and enforcement or their adjudication in China, as long as the judgment or arbitration debtor has assets in China.