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Latest development on Mutual Recognition and Enforcement of Court Judgments between China and USA in June 21, 2024

by China Zhejiang transnational business lawyer team

July 5, 2024

Despite fluctuations in the relationship between the People's Republic of China and the United States due to various factors in these years, the economic and trade exchanges between China and the US have always been substantial, and the stability of this economic relationship reflects the important position of the two countries in the global economy and their interdependent economic interests. There are certain complexities and challenges between China and the United States in recognizing and enforcing each other's court judgments, for example, there is no specialized convention on mutual recognition and enforcement of judicial judgments between the two countries, but in certain specific circumstances, the courts of both countries may recognize and enforce each other's judgments. We are now organizing and summarizing important information on this issue as below:

1. In 2009, as the first case in which the United States recognized a Chinese court judgment, the Southern District Court of Indiana in the United States proposed a typical method for US courts to enforce Chinese court judgments. This case was a request by Hubei Gezhouba Sanlian Industrial Co., Ltd. to enforce a judgment against Robinson Helicopter Co., Ltd. in the United States;

2. In cases where Chinese courts have already been recognized and enforced, relevant US courts have indicated that they can enforce judgments of Chinese courts if they meet the substantive and procedural requirements of relevant laws. These relevant legal basis can be the Uniform Recognition of Foreign Currency Judgments Act implemented in the state;

3. The Uniform Recognition of Foreign Currency Judgments Act has not been in effect in all states of the United States. As of now, 12 states in the United States have not yet passed the Uniform Foreign Currency Judgments Recognition Act (UFCMJRA);

These states include: Alabama, Alaska, Arkansas, Georgia, Massachusetts, Mississippi, New York, Oklahoma, West Virginia, Wisconsin, Wyoming, Puerto Rico - although Puerto Rico is not a single state. But it is a US territory, and the relevant laws also apply. These states and regions have not yet passed the UFCMJRA, but may have adopted the previous Uniform Foreign Money Judgments Recognition Act (UFMJRA) or have their own legal framework to handle the recognition and enforcement of foreign currency judgments.

4. On June 30, 2017, the Intermediate People's Court of Wuhan City, Hubei Province ("Wuhan Intermediate Court") made a ruling recognizing and enforcing a commercial judgment made by the Los Angeles County High Court in California, United States ("this case"). This case is considered the first case of Chinese courts recognizing and enforcing commercial judgments of US courts.

5. According to incomplete statistics, till June 21, 2024, there are currently 7 cases of recognition and enforcement of Chinese court judgments by the United States, and 4 cases of recognition and enforcement of US court judgments by China.