what we think

By Faye Shen

According to China's highest court, Chinese courts concluded more than 26,000 foreign-related civil and commercial cases in 2024, representing a 6.1% year-on-year increase. Such cases typically involve foreign parties, facts, or subject matters and follow the procedures under the PRC Civil Procedure Law.

For international companies and individuals pursuing claims or defending disputes in China, understanding the procedural landscape is essential. Below is a practical overview of the key issues foreign parties commonly face when commencing proceedings before Chinese courts.

1. Filing a Case: Required Documentation

Foreign plaintiffs must submit a complete filing package. Core documents normally include:

Proof of identity

• Individuals: Copy of passport
• Companies and organizations:
  • Certificate of incorporation or registration
  • Passport copy of the authorized signatory
  • Documentary proof of authority (e.g., board resolution or power of attorney)

Power of attorney (POA) authorizing the appointed PRC counsel to represent plaintiff before Chinese courts. Foreign parties can grant authority through a POA executed either:

• Outside China – POA requires notarization and legalization/apostille; or
• Inside China:
  • The POA is executed in the presence of the judge (either in-person or by video), or
  • The POA is notarized by a PRC notary public.

Early preparation of POAs is critical to avoid delays at the filing stage.

Defendant information sufficient to clearly identify the opposing party (typically name and residential address)

Statement of claim setting out claims and legal grounds

Supporting evidence

Notarization and Apostille Requirements

All evidence and corporate documents generated outside China must be:

• Notarized in the home jurisdiction, and
• Legalized by the Chinese embassy/consulate, or apostilled if the issuing jurisdiction is a Hague Convention member.

Chinese courts will not formally accept filings until these authentication requirements are met.
Note: Documents originating in Hong Kong, Macau, and Taiwan are subject to separate procedural formalities under regional arrangements.

3. Chinese Language and Translations

Chinese courts operate exclusively in Chinese (Mandarin). All documents in foreign languages must be accompanied by:

• Certified Chinese translations prepared by a qualified translation agency.

Even when judges or court staff possess foreign language skills, hearings and case documentation are conducted strictly in Chinese. Parties should budget time and costs for professional legal translation.

4. Jurisdiction of Chinese Courts

Legally speaking, Chinese courts may exercise jurisdiction where a dispute has a proper connection to China, including situations involving:

• Place of contract conclusion or performance in China
• Location of the subject matter or relevant assets
• Presence of attachable property within China
• Place where a tort occurred
• Location of a Chinese representative office or business establishment

In addition, parties may agree in writing to submit disputes to Chinese courts, provided statutory requirements are met.

Exclusive Jurisdiction Matters

Certain categories of disputes must be heard exclusively by PRC courts, including:

• Corporate establishment, liquidation, dissolution, shareholder contracts and the validity of corporate resolutions
• Confirmation of intellectual property rights
• Actions involving ownership, use rights, lease, mortgage, succession, or other rights over real estate located in China

5. Exit Bans: An Effective Preservation Tool in Cases Involving Foreign Parties

In cases where a foreign defendant or its legal representative holds no assets within China, and there is a risk of evading enforcement, the court may, normally upon the plaintiff's application, impose exit bans (border control restrictions) to prevent the responsible individuals from leaving China while proceedings remain pending, or until a judgment is enforced.

Exit bans are a frequently applied preservation measure in foreign-related litigation and can provide significant leverage to secure compliance, settlement, or satisfaction of court judgments.

6. Service of Process in Cross-Border Cases

Defendants Located in China

Service largely follows domestic procedures. After applying to the court, counsel may obtain a foreign defendant's identity and residential information through the immigration authorities or the local public security bureau in the area where the defendant resides. However, plaintiffs are responsible for providing valid service leads—failure to do so may result in non-acceptance of the case.

Defendants Located Outside China

When defendants are overseas, service can be procedurally complex. Plaintiffs must submit:

• A verified overseas service address supported by written proof.

Where the above overseas service address is available, courts may use any of the following methods under Chinese procedural law:

1. Service pursuant to international treaties
2. Diplomatic channels
3. Service via Chinese embassies or consulates (for Chinese nationals)
4. Service on a designated PRC litigation agent
5. Service upon Chinese subsidiaries, representative offices, branches, or authorized business agents
6. Service on co-defendant PRC entities where the foreign person serves as legal representative or key officer
7. Service on the legal representative located within China
8. Postal service (if permitted by the foreign jurisdiction's law)
9. Electronic service where legal and receipt is verifiable
10. Any other method consented to by the recipient

Public Announcement Service

Where no overseas service address is available and none of the above statutory service methods are practical, courts may resort to service by public announcement. Service is deemed completed 60 days after publication.

However, plaintiffs should be cautioned that:

• Public announcement can significantly impair recognition and enforcement of the judgment abroad, as many foreign courts view it as inconsistent with international due-process standards.
• These enforcement risks directly stem from the plaintiff's inability to provide proper service details.

7. Practical Takeaways for Foreign Litigants

Foreign-related litigation in China is active, sophisticated, and increasingly accessible, but success depends on procedural preparation:

1. Appoint PRC counsel before filing
2. Prepare supporting documents and plan for notarization/apostille and professional Chinese translations
3. Confirm jurisdiction or exclusive jurisdiction issues upfront
4. Consider preservation options such as exit bans
5. Provide verified overseas service addresses to protect future enforcement prospects

R&P's litigation team routinely represents international companies and individuals in cross-border disputes across multiple industries, including manufacturing, sourcing, pharmaceuticals, consumer goods, and technology. For tailored advice on initiating or defending foreign-related litigation in China, R&P's litigation team is available for confidential consultations. Please contact Maarten Roos ([email protected]), Faye Shen ([email protected]) or your trusted R&P contact.