Supreme People's Court, Provisions on Several Issues Concerning the Application of the Law in Trials of Foreign-related Civil and Commercial Contract Disputes

最高人民法院关于审理涉外民事或商事合同纠纷案件法律适用若干问题的规定

September 02, 2007 | BY

clpstaff &clp articles &

Application of foreign laws excluded from five more types of contracts.

Clp Reference: 2210/07.07.23 Promulgated: 2007-07-23 Effective: 2007-08-08

Promulgated: July 23 2007
Effective: August 8 2007

Main Contents: The Provisions include five more types of contracts to which the law of China shall apply:

(1) contracts for the transfer of shares in Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures and wholly foreign-owned enterprises;

(2) contracts under which foreign natural persons, legal persons or other organizations contract for the operations of Sino-foreign equity joint ventures or cooperative joint ventures established within the territory of China;

(3) contracts for the purchase by foreign natural persons, legal persons or other organizations of equity from shareholders of non-foreign-invested enterprises within the territory of China;

(4) contracts for the subscription by foreign natural persons, legal persons or other organizations for capital increases of non-foreign-invested limited liability companies or companies limited by shares within the territory of China; and

(5) contracts for the purchase by foreign natural persons, legal persons or other organizations of assets of non-foreign-invested enterprises within the territory of China (Article 8).

If the parties have not selected the law applicable to their contract dispute, the law of the country or region with the closest connection to the contract shall apply (Article 5).

Related Legislation: PRC General Principles for Civil Law, Apr 12 1986; and PRC Contract Law, Mar 15 1999, CLP 1999 No.4 p.19

Full Translation: See page 27

clp reference:2210/07.07.23prc reference:法释 [2007] 14 号promulgated:2007-07-23effective:2007-08-08

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]