Expanding Chinese Choice-of-Court Agreements in International Civil Procedure: Legislative Reforms and Global Impacts

Abstract

The rules governing choice-of-court agreements in the Civil Procedure Law (CPL) of the People's Republic of China have undergone significant amendments in 2023. Two notable legislative changes were made to broaden the scope of Chinese choice-of-court agreements in international civil proceedings: extending coverage to all foreign civil disputes and eliminating the requirement for "factual connections" between foreign civil disputes and Chinese courts. Subsequently, through case studies, this article examines four instances applying the rule of choice-of-court agreements under the CPL 2023. The case studies indicate that the disputes covered are primarily contract disputes, and parties tend to favor choosing Chinese courts with which they have factual connections. In other words, the legislation expanding choice-of-court agreements in CPL 2023 exhibits a certain degree of "progressiveness" and "foresight." The Duan v. Zhai case, the Chen v. X Co. case, the Zhongya Co. v. Manzhou Li Co. case, the Hong Kong X Co. v. Xinjiang Y Co. case have been presented to illustrate the points. Lastly, this article anticipates the potential global implications of expanding Chinese choice-of-court agreements under CPL 2023. From a contractual perspective, this expansion will afford parties greater freedom to select Chinese courts. From a procedural standpoint, the expansion has a dual effect: negatively, it will reshape global jurisdiction in international civil proceedings by stripping other competent foreign courts of jurisdiction; positively, it will provide Chinese courts with more opportunities to hear cases. Thus, Chinese courts must enhance their judicial services and improve the attractiveness of their judicial system in global dispute resolution. In conclusion, the jurisdiction of Chinese courts based on choice-of-court agreements has been notably expanded in CPL 2023. Concurrently, this expansion grants parties increased freedom to choose Chinese courts for their cases.