[Direct answer]In the Beijing area, foreign court judgments can be applied for recognition and enforcement in China, but cannot be directly enforced. According to the provisions of the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023 and effective from January 1, 2024) on the recognition and enforcement of foreign court judgments and rulings, parties may apply to the intermediate people's court with jurisdiction for recognition and enforcement. The review conditions mainly include: the judgment has taken legal effect in the issuing country, there is a treaty relationship or reciprocity between China and that country, it does not violate the basic principles of Chinese law and does not harm national sovereignty, security, and public interests. If the conditions are met, the court may order recognition and then enforce it in accordance with domestic procedures. It is recommended to first evaluate the treaty or reciprocity basis, which can be referred to for reference.Creditor's rights and debts, and enforcement casesColumn.

I. Problem Background and Typical Scenarios

Such needs are commonly encountered in several situations: First, domestic parties win lawsuits in foreign courts in cross-border trade and loan disputes, and the other party or his/her property is located in China; Second, identity and property matters such as marriage and inheritance have been adjudicated abroad, and it is necessary to deal with real estate and deposits in mainland China. The enforcement of relevant property can be referred to for reference.Property sales and construction projects1. The first category involves disputes over foreign judgments. 2. The second category involves foreign judgments that are not recognized in China and cannot be enforced directly. 3. The third category involves enterprises needing to recover debts from domestic debtors after litigation abroad. 4. The fourth category involves parties mistakenly believing that they can directly seize domestic assets with a foreign judgment. 5. The fifth category involves unclear treaties or reciprocity between the country where the judgment was issued and China, which requires a feasibility assessment first. When handling similar cases in the Beijing area, the intermediate court usually accepts the application for recognition and, after the decision to recognize the judgment, proceeds to the stages of property investigation and enforcement.

II. Key points of contention

First, regarding the relationship between recognition and enforcement, foreign judgments must be recognized through a formal process before they can be enforced, and there is no such thing as "automatic enforcement". Second, regarding treaty and reciprocity review, China has concluded judicial assistance treaties on civil and commercial matters with more than 30 countries. In the absence of such treaties, recognition will be reviewed based on the principle of reciprocity. Third, regarding effectiveness and finality, foreign judgments must be final and binding. Those that are currently under appeal or may be subject to appeal will generally not be recognized. Fourth, regarding jurisdiction review, the foreign court must have competent jurisdiction over the case and not violate China's exclusive jurisdiction provisions. Fifth, regarding due process, the losing party must have been legally summoned and granted an opportunity to defend themselves. Absent-default judgments will be subject to stricter review. Sixth, regarding public order reservation, judgments that violate China's fundamental legal principles or harm public interests will not be recognized. Seventh, regarding notarization, authentication, and translation, overseas documents must be accompanied by additional certificates or consular authentication in accordance with the "Convention Abolishing the Requirement of Legalization for Foreign Public Documents" (which came into effect in China on November 7, 2023), and must be translated into Chinese. Specific requirements shall be subject to the currently effective laws, regulations, and judicial rulings. For cross-border asset-related matters, reference can be made to relevant provisions.\nCross-border financeColumn.

III. Professional analysis by Henglue Lawyers

Based on several domestic enforcement cases handled by our firm, we can understand the common rules of the "implementation" phase of judgments, which also apply to the enforcement of foreign judgments after they are recognized. Firstly, in a case where the judgment ordered a company to return an intermediary service fee of 423,500 yuan, but the enforcement failed. After entrusting Yin Hang Lawyer, the lawyer found that the company's shareholders, Liu * and Zhang *, had not paid their registered capital in full, so he filed a lawsuit against the shareholders for damaging the interests of the company's creditors. The court ordered the two shareholders to bear supplementary compensation liabilities within the scope of their unpaid capital of 9 million yuan and 1 million yuan respectively. Secondly, Zhang Nan applied for the enforcement of a 2 million yuan loan from Zhou Qiang, but the third party raised objections on the grounds of buying a house under a false name, resulting in the suspension of enforcement. Lawyer Wang Dong represented the appellant, and the second-instance court changed the judgment to allow enforcement, protecting the creditor's rights and interests. Thirdly, a loan dispute of more than 860,000 yuan was mediated by Lawyer Tian Jiaoyan, and it was agreed that the debtor would repay the loan in installments. It was also specified that if the debtor defaulted on any installment, the creditor could apply for enforcement of the remaining amount. It can be seen that recognition is just the first step. Whether the creditor can actually receive compensation depends on the availability of property clues and effective enforcement strategies. This case was handled by Beijing Henglu Law Firm.Yuan HangThe attorney (practice license number: 11101202110286151, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action proposal: First, determine the basis for recognition and ascertain whether China and the country where the judgment was made have concluded a treaty on judicial assistance in civil and commercial matters, or whether there are precedents of reciprocity to follow; Second, prepare the application materials, including the judgment with an additional certificate or consular authentication, the certificate of effectiveness, the Chinese translation, and the identity and authorization documents. The key points of the relevant documents can be referred to for reference.Special services and other cases1. First, the foreign judgment must be recognized by the Chinese court. This includes verifying the authenticity of the judgment and ensuring that the judgment complies with Chinese law. 2. Second, the foreign judgment must be translated into Chinese and notarized by a Chinese notary. 3. Third, the applicant must submit an application for recognition to the intermediate people's court in the place of the debtor's residence or property. 4. Fourth, after the court grants recognition, the applicant must promptly apply for enforcement, noting that the statute of limitations for enforcement is two years, starting from the last day of the period specified in the judgment for performance. 5. Fifth, simultaneously investigate clues to domestic assets, such as bank accounts, real estate, equity, and mature claims against third parties. If necessary, apply for property preservation. In terms of legal basis, the *Civil Procedure Law of the People's Republic of China* (amended in 2023) stipulates the conditions for recognizing and enforcing foreign judgments, the circumstances under which recognition is not granted, and the enforcement procedures. The statute of limitations for enforcement and property preservation apply to the general provisions of the enforcement section of the law, with the current effective version serving as the definitive reference.

5. Henglue Law Firm's Advice

Risk Warning: Firstly, foreign judgments are not automatically enforceable. If there is no treaty and the basis of mutual reciprocity is unclear, they may be ruled inadmissible. It is advisable to conduct a preliminary assessment before making any investments. Secondly, in the recognition process, the losing party may raise defenses such as not being legally summoned, so it is essential to prepare materials thoroughly. Thirdly, even after recognition, enforcement may still encounter a lack of enforceable assets. It is necessary to conduct a preliminary investigation of the assets in advance and consider additional measures such as suing shareholders. For reference only.Beijing Henglue Law Firm1. The official website's enforcement section; 2. Secondly, the statute of limitations for enforcement applications does not automatically suspend during the recognition process. It is necessary to coordinate and arrange the procedures in a comprehensive manner. It is recommended to entrust a lawyer as soon as possible to develop an integrated "recognition + enforcement" plan.

VI. Frequently Asked Questions

Q1: What conditions must be met for a foreign judgment to be enforced in China?

There are mainly four requirements: the judgment must have legal effect and enforceability in the country where it was made; there must be a treaty relationship or mutual benefit between China and the country where the judgment was made after review; the foreign court must have competent jurisdiction and not violate China's exclusive jurisdiction; it must not violate the basic principles of Chinese law and must not harm national sovereignty, security, and public interests. At the same time, the certified judgment, the certificate of effectiveness, and the Chinese translation must be submitted. If all the conditions are met, the intermediate court may, after deciding to recognize the judgment, apply for compulsory enforcement in accordance with domestic procedures.

Q2: In which situations will the court decide not to recognize a contract?

Common situations include: the judgment has not yet taken effect or lacks enforceability; the country of issuance has no treaty with China and no precedent of mutual assistance; violation of China's exclusive jurisdiction or the parties have an effective arbitration agreement; the losing party has not been legally summoned or has no opportunity to defend; the judgment conflicts with a judgment that has taken effect in China or a judgment recognized by a third country; the content violates basic legal principles or damages the public interest of society. If any of the above situations exist, the application is likely to be rejected, and the lawyer should first evaluate it before initiating the procedure.

Q3: What materials are required to apply for the recognition of a foreign judgment?

These typically include: applications for recognition and enforcement; foreign judgments and certificates of effectiveness, accompanied by Chinese translations and additional certificates or consular authentication; proof of the parties' identities and legal capacity; power of attorney and agency procedures; explanatory materials proving jurisdiction and treaty or reciprocity basis; and a list of domestic property clues. If any materials are missing, they may be required to be supplemented or even rejected. It is recommended that lawyers check each item one by one according to the requirements of the accepting court and submit them all at once to avoid procedural delays.

Q4: How long does it take and how much does it cost to recognize and enforce a judgment?

The recognition procedure is generally completed within a few months, with different courts operating at different paces. After the recognition decision is made, the court typically takes enforcement measures within six months. The duration of the investigation and auction process depends on the condition of the property. In terms of fees, the application fees for recognition and enforcement are charged according to legal standards, while property enforcement is charged in stages based on the value of the property. Lawyer's fees are negotiated based on the complexity of the case. Cross-border notarization, authentication, and translation also incur additional costs, so sufficient time and budget should be reserved for these expenses.

Q5: What should I do if the other party still refuses to pay back the money after I've admitted my debt?

After the ruling is acknowledged, an application for enforcement can be made. The court can inquire into and freeze bank accounts, seize real estate and vehicles, and auction off equity. If the company has no assets available for enforcement, the court can investigate the actual payment situation of the shareholders in accordance with the Company Law and relevant judicial interpretations. If the claim for accelerated maturity of the investment meets the conditions, there are indeed examples in our firm's cases where the court ordered the unpaid shareholders to make supplementary compensation within the scope of their subscribed capital. If new clues to the company's assets are found, an application for resuming enforcement can be made at any time. If necessary, an application can be made to include the company on the list of dishonest people and restrict its consumption, so as to put pressure on the company to fulfill its obligations.

The above answer is based on the judicial practice in Beijing. The adjudication guidelines in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit.\nLegal services for creditor-debtor disputes·Attorney Yuan Hang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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 a dispute arises, please consult a practicing lawyer in time.