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Enforcing Commercial Judgments between China and South Africa in the Context of BRICS and BRI

Published online by Cambridge University Press:  04 December 2020

Weidong Zhu*
Affiliation:
University of Chinese Academy of Social Sciences

Abstract

The frequent business transactions between China and South Africa in the context of BRICS and the Belt and Road Initiative have resulted in many commercial disputes. The ultimate resolution of such disputes requires a feasible enforcement mechanism for commercial judgments, but some obstacles remain when enforcing commercial judgments from each side. Both countries have adopted different approaches and principles to ascertain the jurisdiction of the adjudicating court, the application of reciprocity and an understanding of public policy. This article examines these obstacles by comparing the two enforcement regimes, and explores ways to overcome these obstacles and to realize the free flow of commercial judgments between both sides.

Type
Research Article
Copyright
Copyright © SOAS University of London, 2020

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Footnotes

*

Professor of law, University of Chinese Academy of Social Sciences; director, Center for African Laws, China-Africa Institute.

References

1 On the Chinese mainland, there are no separate civil and commercial codes; accordingly, there is no division between civil and commercial judgments. Generally, they are just categorized as civil and commercial judgments. However, commercial judgments in practice refer to those to pay a fixed or fixable sum of money. In South Africa, commercial judgments usually refer to financial judgments. This article only deals with the recognition and enforcement regimes on the Chinese mainland, not including those in the Hong Kong Special Administrative Region, Macao Special Administrative Region or Taiwan, where different enforcement regimes apply.

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8 The data collected in this part is as of 4 November 2020.

9 The cases dealt with in China with a South African element refer to those in which at least one of the parties is from South Africa, the cause of the action occurs in South Africa, or the subject matter is located in South Africa.

10 For example, 11 judgments in each of 2014 and 2015, 10 in 2016, 11 in 2017 and 18 in 2018.

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29 2007 2 SA 283 (SCA).

30 According to article X of this convention: “Any judgment given by a court with jurisdiction in accordance with Article IX which is enforceable in the State of origin where it is no longer subject to ordinary forms of review, shall be recognized in any Contracting State, except: (a) where the judgment was obtained by fraud; or (b) where the defendant was not given reasonable notice and a fair opportunity to present his case.” The full text of the convention is available at: <https://treaties.un.org/doc/Publication/UNTS/Volume%20973/volume-973-I-14097-English.pdf> (last accessed 25 October 2020).

31 For example, the Civil Procedure Law of the PRC (as amended on 27 June 2017).

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38 Only a few judicial assistance treaties in civil or commercial matters between China and France, Spain, etc, have such provisions. For example, the Judicial Assistance Treaty between China and France in Civil and Commercial Matters, art 22(2) provides: “as for the questions concerning the natural person's status and capacity, the requesting court does not apply the law which should have been applied in accordance with the conflict rules of the requested state, unless the similar result is reached”.

39 Enforcement of Foreign Civil Judgments Act, 1988, arts 2 and 3.

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49 For example, Judicial Assistance Treaty between China and Tunisia in Civil and Commercial Matters, art 23; Judicial Assistance Treaty between China and Egypt in Civil, Commercial and Criminal Matters, art 22; Judicial Assistance Treaty between China and Ethiopia in Civil and Commercial Matters, art 25.

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61 Forsyth Private International Law, above at note 26 at 393.

62 Id at 404–07; Schulze On Jurisdiction, above note 40 at 18–26.

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64 Neels “Preliminary remarks”, above note 57 at 6.

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