Fa Fa [1995] No. 18
August 28, 1995
To the higher people's courts of all provinces, autonomous regions and municipalities directly under the Central Government and the Military Court of the Liberation Army:
For the purposes of strictly implementing the Civil Procedure Law of the People's Republic of China and relevant provisions of the international conventions which China has acceded to and guaranteeing the litigation and arbitration activities to be carried out according to law, it has been decided to establish a report system on issues in respect of the people's courts accepting foreign-related economic disputes with arbitration agreement, not allowing foreign-related arbitral award to be enforced and refusing to recognize or enforce foreign arbitral award. It is hereby notified as follows:
Article 1 In respect of a economic case and a maritime case filed with a people's court that involves a foreign, Hong Kong, Macao or Taiwan element, in case there is an arbitration clause in the contract concluded between the parties or the parties have concluded an arbitration agreement afterwards, and if the people's court consider the arbitration clause or agreement as null and void, invalid or unenforceable by virtue of ambiguous contents, it shall, prior to accepting the lawsuit, report to the higher people's court within its jurisdiction for review; and if the higher people's court consent to accepting the case, it shall report its review opinion to the Supreme People's Court. The case may be suspended to be accepted before the Supreme People's Court makes reply.
Article 2 Where one party applies with the people's court for enforcement of an award made by a Chinese foreign-related arbitration institution or for recognition and enforcement of an award made by a foreign arbitration institution, in case the people's court consider the award made by the Chinese foreign-related arbitration institution meets one of the circumstances as stipulated in Article 260 of the Civil Procedure Law or the award made by the foreign arbitration institution does not comply with the provisions of the international conventions which China has acceded to or the reciprocity principle, it shall, prior to making decision on not to enforce or refuse to recognize and enforce the award, report to the higher people's court within its jurisdiction for review; and if the higher people's court consent to not to enforce or refuse to recognize and enforce the same, it shall report its review opinion to the Supreme People's Court. A decision on not to enforce or refuse to recognize and enforce the award may only be made after the Supreme People's Court makes its reply.
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