1. Jurisdiction in Economic Disputes (Foreign-Related Commercial Cases)
Economic disputes involving foreigners are classified as "Foreign-Related Civil and Commercial Cases." Jurisdiction is determined by several factors:
A. Contractual Jurisdiction (Choice of Forum)
Under Chinese law, parties to a foreign-related contract can agree in writing to the jurisdiction of a court in a place that has a "real connection" with the dispute (e.g., place of signing, place of performance, or the defendant's domicile).
The 2024/2025 Shift: If the contract does not have a "real connection" but the parties agree to a Chinese court, Chinese courts are increasingly likely to accept the case to promote international dispute resolution.
B. Default Jurisdiction (No Agreement)
If there is no written agreement, the following courts usually have jurisdiction:
Defendant’s Domicile: The court where the defendant resides or is registered.
Place of Performance: The court where the contract was executed.
Specialized Courts: For high-value or complex cases, Intermediate People’s Courts or specialized Financial/IP Courts may take the first instance.
C. Arbitration Option
The 2025 Arbitration Law (effective March 1, 2026) allows for more flexibility, including ad hoc arbitration in Free Trade Zones (like Shanghai, Qianhai). If an arbitration clause exists, Chinese courts generally will not have jurisdiction.
2. Jurisdiction in Marriage & Divorce Disputes
Jurisdiction in matrimonial cases depends on nationality and residency.
A. Both Parties are Foreigners
Registered in China: If the marriage was registered in China, Chinese courts have jurisdiction.
Registered Abroad: If the marriage was registered abroad, Chinese courts will generally only accept the case if at least one party has resided in China for over one year (habitual residence).
B. One Party is a Chinese National
Chinese courts always have jurisdiction if one party is a Chinese national, regardless of where the marriage was registered or where the foreign spouse lives.
C. The "Cooling-Off" Period (2025 Update)
For divorce by agreement (at the Civil Affairs Bureau), a mandatory 30-day cooling-off period applies. If one party is unhappy with the division of assets during this time, they must switch to litigation (the court system).
3. How Foreigners Can Protect Their Rights
To ensure your rights are protected in the Chinese judicial system, follow these four pillars of legal strategy:
I. The "Apostille" Strategy (Crucial for 2026)
Since China joined the Apostille Convention, foreign documents (like marriage certificates from the US/UK or business contracts from Germany) no longer need embassy legalization.
Action: Ensure all your foreign evidence is Apostilled in your home country. Without this, the Chinese court will not admit the evidence.
II. Professional Translation
Chinese is the only official language of the court.
Action: All evidence must be translated by a qualified translation agency in China with an official stamp. "Self-translation" is not accepted.
III. Asset Preservation (Property Freeze)
In economic disputes, "winning" the case is useless if the money is gone.
Action: Apply for a Property Preservation Order (财产保全) at the same time you file the lawsuit. The court can freeze the defendant's bank accounts or real estate until the judgment is issued.
IV. Notarize Your Digital Evidence
In 2025, WeChat logs and emails are primary evidence.
Action: Do not just take screenshots. Use a Notary Public (公证处) to witness you opening the app and recording the chat logs. This makes the evidence "irrefutable" in court.
Howwww.hirelawfirm.cn Can Protect You
Legal disputes in a foreign country are stressful and high-stakes. HireLawFirm.com specializes in bridging the gap between Western expectations and Chinese legal reality:
Jurisdiction Challenges: We represent foreigners to challenge "improper jurisdiction" if you are sued in an unfavorable location.
Cross-Border Asset Recovery: We track assets across provinces to ensure your judgment is actually paid.
Bilingual Representation: Our lawyers ensure you understand every step of the court process in your native language.
"The law protects those who act on their rights, not those who wait."
Would you like me to draft a "Legal Risk Audit" for your current business contract or pre-nuptial situation in China? Visit us at www.hirelawfirm.cn for an expert review.
