[Direct answer]In the Beijing area, foreign arbitral awards cannot be directly enforced in China. They must first be applied for recognition and enforcement by the people's court with jurisdiction. If the country where the arbitral award was made is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention, which came into effect in China on April 22, 1987), the parties may apply to the intermediate people's court at the defendant's domicile or where the defendant's property is located for recognition and enforcement in accordance with the Convention. For non-parties, recognition and enforcement may be handled in accordance with the principle of reciprocity. After review by the people's court, unless there are circumstances specified in the Convention that preclude recognition (such as the invalidity of the arbitration agreement, failure to receive proper notice, the award exceeding the scope of the arbitration agreement, improper arbitration procedures, matters not arbitrable under the law, or violations of public policy), the court shall rule to recognize and enforce the award. According to the special provisions on foreign-related civil litigation procedures in the Civil Procedure Law of the People's Republic of China (amended in 2021), such applications are under the jurisdiction of intermediate people's courts. In practice, timely applying for property preservation and identifying the debtor's property clues in China are key to ensuring the effective enforcement of the award. Therefore, parties should confirm the treaty relationship as soon as possible, prepare certified arbitration agreements and awards, along with their translations, and initiate the recognition and enforcement process as soon as possible.

1. Problem background and typical scenarios

In cross-border trade and investment, parties often agree to resolve disputes through foreign arbitration institutions. However, after the arbitration award is issued, if the losing party has assets in China, they need to apply for its recognition and enforcement in China. Typical scenarios include: the foreign arbitration award requires a Chinese company to make payments, and the winning party wants to enforce its assets in China; the arbitration venue and arbitration institution specified in the foreign-related contract are located abroad; the losing party defends against the award on the grounds of procedural defects in the arbitration process; or the award involves disputes over arbitrability or public policy. Beijing is a hub for foreign-related business activities, and the Intermediate People's Court of Beijing has jurisdiction over the recognition and enforcement of foreign arbitration awards. If parties understand the rules and review standards of the Convention, it can significantly improve the efficiency of enforcement.

II. Key points of contention

First, whether foreign arbitral awards can be directly enforced in China and what procedures are required for this. Second, whether the country where the award was made is a party to the New York Convention, and how the treaty and the principle of reciprocity apply. Third, what circumstances may lead to non-recognition and non-enforcement of the award. Fourth, how to determine the jurisdiction of the court and grasp the application deadline. Fifth, what materials are required for the application, and how to handle the authentication and translation. Sixth, how to locate the assets and apply for enforcement after the award is recognized. Clarifying these issues is essential to successfully exercising the right to enforce the award.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm once represented a private equity fund investment arbitration case: An investor subscribed to a private equity fund for 1.6 million yuan, but after the fund was terminated and liquidated, only part of the funds were paid out, and the remaining principal could not be repaid for a long time. After accepting the case, Henglue Law Firm sorted out the evidence such as the fund contract, payment and liquidation records, and regulatory agency's administrative measures, and pointed out that the manager failed to fulfill his due diligence obligation, violated investment operation regulations, and failed to fulfill his fiduciary duty. The firm then applied for arbitration to the Beijing Arbitration Commission. The arbitration tribunal found that the manager committed multiple breaches of contract and ordered the return of the investment funds of over 1.38 million yuan, together with interest, and the defendant should bear the corresponding costs. This case demonstrates the characteristics of arbitration as a dispute resolution method: it is final and efficient, and the parties should fulfill the arbitration award after it is made. If one party fails to perform, the other party can apply to the people's court for enforcement. This principle also applies to foreign arbitration awards—the only difference is that foreign awards need to be recognized by the people's court before they can enter the enforcement process. This case was handled by Beijing Henglue Law Firm.Yang YafangThe lawyer (practice certificate number: 11101202211531374, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action list: First, confirm whether the country where the arbitration award was made is a party to the New York Convention or whether there is a reciprocity relationship; Second, prepare the arbitration agreement, the original and certified copies of the award, and the Chinese translation; Third, apply to the intermediate people's court of the debtor's residence or property location for recognition and enforcement; Fourth, apply for property preservation simultaneously to prevent the debtor from transferring property; Fifth, review whether there are circumstances precluding recognition and prepare to deal with them; Sixth, apply for enforcement promptly after recognition and provide clues to the debtor's property. Legal basis: The Convention on the Recognition and Enforcement of Foreign Arbitral Awards (which came into effect in China on April 22, 1987), the special provisions on foreign-related civil litigation procedures in the Civil Procedure Law of the People's Republic of China (amended in 2021), the provisions on the enforcement of arbitral awards in the Arbitration Law of the People's Republic of China (amended in 2017), and the relevant provisions of the Supreme People's Court on the recognition and enforcement of foreign arbitral awards; Specific provisions shall be subject to the currently effective laws, regulations, and judicial rulings. For matters involving foreign affairs and cross-border transactions, please consultFinancial capital and cross-border transactions involving foreign entitiesTeam; for those involved in cross-border contracts and commercial disputes, the following may be of referenceBusiness and contract disputes in enterprisesService; it can be combined with compensation recovery and enforcementCreditor's rights and debts, and enforcement板块。

5. Henglu Law Firm's Reminder

Firstly, foreign arbitral awards must be applied for recognition before they can be directly enforced. Secondly, it is necessary to first confirm whether the country where the award was made is a party to the New York Convention, and then decide whether to apply the Convention or the principle of reciprocity. Thirdly, attention should be paid to the circumstances under which recognition is not granted as stipulated in the Convention, and assess and respond to them in advance. Fourthly, the materials must be certified and accompanied by Chinese translations, otherwise they may affect the acceptance of the application. Fifthly, early preservation and investigation of property clues are the key to successful enforcement. For other difficult matters, assistance can be sought from relevant professionals or institutions.Special services and other casesFor reference, you can check the sections related to cross-border inheritance and identity relationships\nInheritance of property and division of family assetsFor any inquiries regarding cross-border corporate disputes, please feel free to consult us.Business and contract disputes in enterprisesTeam.

VI. Frequently Asked Questions

Q1: Can foreign arbitral awards be directly enforced in China?

It cannot be enforced directly. Foreign arbitral awards do not have automatic enforceability in China. The parties must first apply to the people's court with jurisdiction for recognition. After the application is reviewed and found to meet the requirements, the party may then apply for enforcement. If the country of origin and China are both parties to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, the party may apply in accordance with the Convention; otherwise, the party may proceed in accordance with the principle of reciprocity. It is recommended to initiate the procedure as soon as possible and take measures to preserve the property simultaneously.

Q2: What is the New York Convention, and how is it applied?

The Convention on the Recognition and Enforcement of Foreign Arbitral Awards, also known as the New York Convention, is an important international convention for the recognition and enforcement of foreign arbitral awards. China ratified it on April 22, 1987. For arbitral awards issued in countries that are also parties to the convention, the parties may apply to the intermediate people's court at the defendant's domicile or where the property is located for recognition and enforcement in accordance with the convention. The court shall review the application in accordance with the conditions stipulated in the convention and, unless there are circumstances precluding recognition, shall recognize and enforce the award.

Q3: Under what circumstances will recognition and enforcement be denied?

According to the New York Convention, common circumstances leading to non-recognition include: the parties to the arbitration agreement lack legal capacity or the agreement is invalid; the party against whom the award is made was not properly notified or was unable to present its views for other reasons; the award exceeds the scope of the arbitration agreement; the composition or procedures of the arbitral tribunal are inconsistent with the agreement or the law of the place of arbitration; the subject matter of the award cannot be resolved by arbitration according to Chinese law; and recognition and enforcement would violate Chinese public policy. The party claiming non-recognition shall bear the corresponding burden of proof.

Q4: What materials do I need to prepare for the application for recognition and enforcement?

Generally, the following documents are required: the original or a certified copy of the arbitration agreement; the original or a certified copy of the arbitration award; the Chinese translation of the above-mentioned documents (certified if necessary); the applicant's qualification certificate and power of attorney materials; and evidence of the respondent's residence or property within China. Incomplete materials may result in corrections or non-acceptance. It is recommended to entrust a lawyer familiar with foreign-related business to review the materials and handle the certification and translation procedures.

Q5: After the acknowledgment, how to locate the property of the person subject to enforcement?

This can be done by searching for public information, applying for court investigations, and providing clues to known assets. Applicants can provide the court with clues to the debtor's bank accounts, real estate, vehicles, equity, accounts receivable, and apply for seizure, freezing, and auction. If the debtor shows signs of transferring assets, they should apply for property preservation as soon as possible. The court can also take measures such as restricting high-consumption and adding the debtor to the list of dishonest people in accordance with the law to urge the debtor to fulfill the judgment.

The above Q&A is mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, in order to avoid missing the statutory time limit. →Financial capital legal services·Attorney Yang Yafang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.