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China Published Judicial Interpretations on Issues regarding
Application of Laws to Foreign-Related Civil Relations

January 2013
On 28 December 2012, the PRC Supreme People’s Court published the judicial interpretations on issues regarding the “Law of the People's Republic of China on Application of Laws to Foreign-Related Civil Relations". The said judicial has been implemented as from 7 January 2013.
According to the said judicial interpretations, foreign related contractual parties may select a law as a governing law of the contract only where the PRC laws do have express stipulations allowing contractual parties to select a law as the governing law for the relevant foreign related contractual relationship; otherwise such selection will be determined by the PRC courts as invalid.
According to the said judicial interpretations, in respect of any of the following situations, if the social public interest is involved and the relevant PRC laws and administrative regulations require that the relevant stipulations shall be mandatorily applied, then such stipulations shall directly apply:
1. which involves protection of the interests of labors;
2. which involves food or public health safety;
3. which involves environmental safety;
4. which involves foreign exchange control or other financial safety matters;
5. which involves anti-monopoly or anti-dumping; and
6. Other situations for which the relevant stipulations should be recognized as mandatory stipulations.

Any legal information contained in this newsletter is general in nature and laws and regulations are changing from time to time and compliance will always depend upon the particular circumstances. We have not attempted to give exhaustive descriptions of law or to give a legal opinion on specific legal issues. You should not rely on this newsletter as a legal advice for any particular purpose.




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