Limitation of Foreign Civil Litigation

1. Article 195 of the Opinions of the Supreme People's Court on the Implementation of the General Principles of Civil Affairs of the People's Republic of China stipulates:

The statute of limitations for foreign-related civil legal relationships shall be determined according to the applicable law of civil legal relationships determined by conflict norms.

2. Article 246 of the Civil Procedure Law:

If the defendant does not have a residence within the territory of China, the court shall send a copy of the complaint to the defendant and notify the defendant to submit a defense within 30 days after receiving the copy of the complaint. The court shall determine whether the defendant applies for an extension of time.

3. Article 247 of the Civil Procedure Law:

The appeal period for parties without a residence in China and the defense period for the appellant are also 30 days, and can be extended with the permission of the court.

4. Article 248 of the Civil Procedure Law:

The period during which the court hears foreign-related cases is not limited by the period during which domestic cases are heard.

The Civil Procedure Law provides the following provisions on the jurisdiction of foreign-related civil litigation

1. Jurisdiction over contract disputes or other property rights disputes where the defendant has no domicile within the territory of China.

If a lawsuit is filed against a defendant who does not have a domicile within the territory of China due to contract disputes or infringement disputes, the plaintiff may choose to have jurisdiction in the people's court of a location with a certain connection to the dispute. According to the Civil Procedure Law, if a lawsuit is brought against a defendant who has no domicile within the territory of the People's Republic of China due to contract disputes or other property rights disputes, if the contract is signed or performed within the territory of the People's Republic of China, or if the subject matter of the lawsuit is within the territory of the People's Republic of China, or if the defendant has property available for seizure within the territory of the People's Republic of China, Alternatively, if the defendant has a representative office within the territory of the People's Republic of China, it may be under the jurisdiction of the people's court of the place where the contract is signed, the place where the contract is performed, the place where the subject matter of the lawsuit is located, the place where the property available for seizure is located, the place where the infringement occurred, or the place where the representative office is located. This regulation clarifies:

(1) If a lawsuit is brought against a defendant outside of China due to a contract dispute, if the contract is signed or performed in China, or if the subject matter of the lawsuit is in China, or if the defendant has property available for seizure in China, or if the defendant has a representative office in China, the jurisdiction may be exercised by the people's court of the place where the contract is signed, where the contract is performed, where the subject matter of the lawsuit is located, where the property available for seizure is located, or where the representative office is located.

(2) If a lawsuit is brought against a defendant outside of China due to an infringement dispute, if the place of occurrence or result of the infringement is in China, or if the defendant has property available for seizure in China, or if the defendant has a representative office in China, the jurisdiction may be exercised by the people's court of the place of occurrence or result of the infringement, the location of the subject matter of the lawsuit, the location of the property available for seizure, or the location of the representative office. The above-mentioned property rights disputes include real estate disputes. Even if the real estate is located abroad, as long as the defendant has property available for seizure in China, the plaintiff can bring a lawsuit to the people's court.

2. Foreign related contracts or disputes over foreign property rights and interests may be governed by a court chosen by the parties through agreement.

According to the Civil Procedure Law, parties involved in disputes over foreign-related contracts or property rights and interests may choose the jurisdiction of the court in the place where the dispute is actually related through a written agreement. Those who choose the jurisdiction of the People's Court of the People's Republic of China shall not violate the provisions of this Law on hierarchical jurisdiction and exclusive jurisdiction. This provision is governed by agreement: (1) Both parties to a foreign-related contract can choose the jurisdiction of the people's court in the defendant's domicile, contract performance place, contract signing place, plaintiff's domicile place, and the location of the subject matter through a written agreement. (2) The parties involved in a foreign-related infringement dispute may reach a written agreement after the dispute arises to choose the jurisdiction of the people's court in the place where the defendant has his domicile, where the infringement occurred, where the plaintiff has his domicile, or where the subject matter is located. Agreement jurisdiction shall not violate the provisions of hierarchical jurisdiction and exclusive jurisdiction.

3. Response jurisdiction.

According to the Civil Procedure Law, if the defendant in a foreign-related civil lawsuit does not raise objections to the jurisdiction of the people's court and responds to the lawsuit and defense, it is deemed to recognize the people's court as the court with jurisdiction. This provision refers to jurisdiction in response to litigation, also known as implied jurisdiction, which means that even if the plaintiff in a foreign-related civil lawsuit brings a lawsuit to a people's court without jurisdiction, but the defendant in the case does not raise an objection to the jurisdiction of the people's court and comes to respond to the lawsuit for substantive defense, it is deemed that they recognize the people's court as a court with jurisdiction.

4. Exclusive jurisdiction.

According to the Civil Procedure Law, lawsuits arising from disputes arising from the performance of contracts for Sino foreign joint ventures, Sino foreign cooperative ventures, or Sino foreign cooperative exploration and development of natural resources in the People's Republic of China shall be under the jurisdiction of the People's Court of the People's Republic of China. This provision clarifies that foreign courts have no jurisdiction over such disputes. This provision is in line with the international practice of contract disputes being governed by the court of the place of performance.