Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Law of the People's Republic of China on the Application of Law in Foreign Related Civil Relations (1)
(Approved at the 1563rd meeting of theJudicial Committee of the Supreme People's Court on December 10, 2012, and amended in accordance with the "Decision of the Supreme People's Court on Amending Twenty Nine Judicial Interpretations on Commercial Matters" passed at the 1823rd meeting of the Judicial Committee of the Supreme People's Court on December 23, 2020)
In order to properly handle foreign-relatedcivil cases, in accordance with the provisions of the Law of the People's Republic of China on the Application of Law in Foreign Related Civil Relations, the relevant issues regarding the application of this law by the people's courts are explained as follows:
Article 1: If a civil relationship fallsunder any of the following circumstances, the people's court may recognize it as a foreign-related civil relationship:
(1) One or bothparties involved are foreign citizens, foreign legal persons or other organizations, or stateless persons;
(2) The habitualresidence of one or both parties is outside the territory of the People's Republic of China;
(3) The subjectmatter is outside the territory of the People's Republic of China;
(4) The legal factsthat create, modify or eliminate civil relations occur outside the territory of the People's Republic of China;
(5) Othercircumstances that can be recognized as foreign-related civil relations.
Article 2: For foreign-related civilrelations that occurred before the implementation of the Law on the Application of Law to Foreign Related Civil Relations, the people's court shall determine the applicable law based on the relevant legal provisions at the time of the occurrence of the foreign-related civil relations; If there were no provisions in the law at that time, it can be determined by referring to the provisions of the applicable law on foreign-related civil relations.
Article 3: If the Law on the Application ofLaw in Foreign Related Civil Relations is inconsistent with other laws regarding the application of law in the same foreign related civil relationship, the provisions of the Law on the Application of Law in Foreign Related Civil Relations shall apply, except for special provisions in commercial laws such as the Bill Law of the People's Republic of China, the Maritime Law of the People's Republic of China, the Civil Aviation Law of the People's Republic of China, and special provisions in intellectual property laws.
If the Law on the Application of Law inForeign Related Civil Relations does not provide for the application of law in foreign related civil relations, but other laws have provisions, the provisions of other laws shall apply.
Article 4: If there is no clear provisionin the laws of the People's Republic of China that the parties may choose the law applicable to foreign-related civil relations, and the parties choose to apply the law, the people's court shall determine that the choice is invalid.
Article 5: If one party claims that thechoice of law chosen by mutual agreement has no actual connection with the disputed foreign-related civil relationship, the people's court shall not support it.
Article 6: If the parties agree to chooseor change the applicable law before the conclusion of the first instance court debate, the people's court shall allow it.
If all parties have invoked the laws of thesame country and have not raised objections to the application of the law, the people's court may determine that the parties have made a choice regarding the law applicable to foreign-related civil relations.
Article 7: If a party cites aninternational treaty that has not yet entered into force with the People's Republic of China in a contract, the people's court may determine the rights and obligations between the parties based on the content of the international treaty, except for those that violate the public interests of the People's Republic of China or mandatory provisions of the laws and administrative
regulations of the People's Republic of China.
Article 8: In any of the followingcircumstances, which involve the social and public interests of the People's Republic of China, the parties cannot exclude the application through agreement, and the provisions of laws and administrative regulations directly applicable to foreign-related civil relations without the need for conflicting normative guidance, the people's court shall recognize them as mandatory provisions stipulated in Article 4 of the Law on the Application of Law to Foreign Related Civil Relations:
(1) Involving theprotection of the rights and interests of workers;
(2) Involving foodor public health safety;
(3) Involvingenvironmental safety;
(4) Financialsecurity related to foreign exchange controls;
(5) Involvingantitrust and anti-dumping measures;
(6) Othercircumstances that should be recognized as mandatory regulations.
Article 9: If one party intentionallycreates a connection point in a foreign-related civil relationship to evade the mandatory provisions of the laws and administrative regulations of the People's Republic of China, the people's court shall recognize it as not having the effect of applying foreign laws.
Article 10: When the resolution offoreign-related civil disputes requires the confirmation of another foreign-related civil relationship, the people's court shall determine the applicable law based on the nature of the pre-existing issue itself.
Article 11: When a case involves two ormore foreign-related civil relationships, the people's court shall determine the applicable laws separately.
Article 12 If the parties have not chosenthe law applicable to the foreign-related arbitration agreement, have not agreed on the arbitration institution or place, or have not agreed on it clearly, the people's court may apply the laws of the People's Republic of China to determine the validity of the arbitration agreement.
Article 13: If a natural person has residedcontinuously for more than one year at the time of the emergence, change, or termination of a foreign-related civil relationship and serves as their center
of life, the people's court may recognize it as the habitual residence of the natural person as stipulated by the applicable law of foreign-related civil relations, except for medical treatment, labor dispatch, official duties, etc.
Article 14: The people's court shallrecognize the place of establishment and registration of a legal person as the place of registration of a legal person as stipulated by the applicable law of foreign-related civil relations.
Article 15: If a people's court is unableto obtain foreign law through reasonable means such as those provided by the parties, provided by international treaties that have already entered into force with the People's Republic of China, or provided by domestic and foreign legal experts, it may be deemed that foreign law cannot be determined.
According to Article 10, Paragraph 1 of theLaw on the Application of Foreign Civil Relations, the parties shall provide foreign laws. If they fail to provide such foreign laws without justifiable reasons within a reasonable period specified by the people's court, it can be deemed that foreign laws cannot be ascertained.
Article 16: The people's court shall listento the opinions of all parties on the content, understanding, and application of the foreign law that should be applied. If the parties have no objection to the content, understanding, and application of the foreign law, the people's court may confirm it; If the parties have objections, the people's court shall review and determine them.
Article 17: The application of law in civilrelations involving the Hong Kong Special Administrative Region and the Macao Special Administrative Region shall be governed by reference to these provisions.
Article 18: In cases of foreign-relatedcivil disputes that occur after the implementation of the Law on the Application of Law to Foreign Related Civil Relations, if the final judgment has not yet been made after the implementation of this Interpretation, this Interpretation shall apply; If a party applies for retrial or decides to retrial in accordance with the trial supervision procedure before the implementation of this interpretation, it shall not apply.
Article 19: In case of any inconsistencybetween the judicial interpretations previously issued by this court and this interpretation, this interpretation shall prevail.