On January 29, 2024, Mainland of China and the Hong Kong Special Administrative Region (HKSAR) reached a significant milestone with the implementation of an arrangement allowing mutual recognition and enforcement of civil and commercial judgments. This development marks a crucial step towards enhancing Hong Kong’s role as an international legal service and dispute resolution center.
Under the newly implemented arrangement, courts in both jurisdictions can recognize and enforce each other’s judgments in civil and commercial matters covered by the agreement. This streamlines legal procedures, reduces risks, legal costs, and time typically associated with cross-boundary enforcement of judgments.
Justice Secretary Paul Lam highlighted the unique advantages of Hong Kong under the “One Country, Two Systems” framework, emphasizing its status as the only jurisdiction with such a wide-ranging arrangement for reciprocal recognition and enforcement of judgments. Lam underscored the importance of this arrangement in consolidating Hong Kong’s position as a regional intellectual property trading hub and a center for international legal and dispute resolution services.
The arrangement, the ninth judicial assistance document between the two jurisdictions, is the most comprehensive to date. It is expected to cover approximately 90 percent of civil and commercial judgments from both sides’ courts, according to Si Yanli, deputy director general of the research office of the Supreme People’s Court.
While the arrangement aims to expand the scope of mutual recognition, certain categories of cases remain excluded, including some family and marriage matters, inheritance cases, and certain patent infringement cases, among others. However, these cases represent only a small portion of civil and commercial cases in judicial practice.
Over the past three years, mainland courts have issued rulings for over 55,000 first-instance civil and commercial cases involving Hong Kong, demonstrating the significant facilitation of cross-border recognition and enforcement of judgments.
Addressing concerns about the arrangement’s impact on Hong Kong’s status as a global business hub, legal expert Louis Chen emphasized the solid legal foundation underpinning mutual recognition and enforcement of judgments. He clarified that mainland courts would not enforce judgments that violate fundamental principles of mainland law or public interests, and similarly, Hong Kong courts would uphold their legal principles.
Chu Kar-kin, a veteran current affairs commentator, affirmed Hong Kong’s commitment to its existing legal system under the Basic Law, ensuring judicial independence and adherence to legal principles.
In conclusion, the mutual recognition and enforcement of judgments between Mainland of China and Hong Kong signify a significant step towards enhancing legal cooperation and promoting a robust legal environment conducive to business and investment in the region.
