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China Insight - Corporate

Foreign Law or Chinese Law?


Does foreign law or Chinese law apply to contracts and other civil relationships? Can the parties involved choose which law is applicable? In China, these questions are answered by the PRC Law on the Application of Laws to Foreign-Related Civil Relations (the “Law”), which took effect on 1 April 2011.

As always, when a new law has to prove itself in practice certain issues need further improvement, clarification and interpretation. Therefore, on 28 December 2012 the PRC Supreme People’s Court (“SPC”) promulgated the Interpretation (I) on Several Issues concerning the Application of the “Law of the People’s Republic of China on the Application of Laws to Foreign-Related Civil Relations” (“Interpretation”).

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China Insight - Corporate
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Portrait of Ulrike Glueck
Dr. Ulrike Glueck
Managing Partner
Portrait of Falk Lichtenstein
Dr. Falk Lichtenstein