Winning a lawsuit abroad is useless if you cannot collect the money. This used to be a dead end in China. For years, courts would reject foreign orders due to strict reciprocity rules. 

But in 202,6 the game has changed. China has opened the door to the enforcement of judgments from the US, the UK, and beyond. 

This guide explains the new rules for reciprocity of foreign judgments in China and how you can turn that piece of paper into real cash. It is time to get paid.

The Key Takeaways:

Winning a lawsuit abroad is useless if you cannot collect the money in China. Here is how the rules have changed for 2026:

• China has moved from "Strict Reciprocity" to "Presumptive Reciprocity." This means it is now much easier to enforce judgments from the US, UK, South Korea, and Singapore.
• Treaties vs. Reciprocity: If your country has a treaty with China (like France or Italy), enforcement is easy. If not (like the US, UK, or Canada), you must rely on the new reciprocity rules.
• No Retrials: The Chinese court will not re-examine the facts of your case. They only check if the foreign procedure was fair (proper service, jurisdiction).
• China will typically enforce the principal debt but will reject punitive damages (like huge pain and suffering awards) that exceed actual loss.
• You generally have two years from the final judgment date to apply for enforcement in China. Do not wait.

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The History of the Reciprocity of Foreign Judgments in China

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To understand why 2026 is a good year for enforcement, you first need to understand the history of the "Great Wall" of litigation.

The Old Regime: "De Facto" Reciprocity (Pre-2022)

For decades, Chinese courts operated on a strict "You go first" basis. If you brought a US judgment to a court in Beijing, the Chinese judge would ask one simple question: "Has a US court ever enforced a Chinese judgment?"

If the answer was "No" or "Unclear," the Chinese court would reject your application. This created a stalemate. American courts were hesitant to enforce Chinese judgments because they thought China would not reciprocate. And China would not reciprocate because American courts had not done it yet. It was a catch-22 that hurt international trade.

The New Regime: "De Jure" Reciprocity (Post-2022)

The change began with a landmark policy document known as the SPC Conference Summary (specifically the "Nanning Statement" and subsequent memos). By 2026, this policy is fully integrated into the local court system.

The standard has shifted from looking at history to looking at the law. The new test asks: "According to the law of your country, could a Chinese judgment theoretically be enforced there?"

If your country's law allows for the enforcement of foreign judgments in principle, China will now presume that reciprocity exists. This shift has been a game-changer for enforcing judgments from major trading partners like the UK, US, Japan, and Australia.

The Three Tests for Reciprocity

Unlike countries that have signed bilateral treaties with China (like France, Italy, or Spain), most English-speaking countries rely on "Reciprocity." In 2026, the Chinese court will look for one of these three things to validate your claim.

1. De Jure Reciprocity (The Law Test)

This is the most helpful category for most businesses. The Chinese judge looks at your country's Civil Procedure Law. Does it have a clause that says "Foreign judgments may be recognized"?

If yes, that is often enough. For example, most US states have adopted the "Uniform Foreign-Country Money Judgments Recognition Act." Because this law exists on the books, China can now say, "Okay, the US law is friendly, so we will be friendly too." We do not need to wait for a specific precedent case.

2. Reciprocal Understanding (The Consensus Test)

Sometimes, countries sign a diplomatic "Memorandum of Understanding" (MOU) even if they do not have a full treaty. This is a "handshake deal" between Supreme Courts.

Example: Singapore and China signed a Memorandum of Guidance. This is not a treaty, but it tells judges in both countries: "Please be nice to each other's judgments." This makes enforcing Singaporean commercial judgments in China very smooth.

3. De Facto Reciprocity (The Precedent Test)

This is the old standard, but it is still valid. It asks: "Has your country enforced a Chinese judgment before?"

This is the strongest form of proof. If we can show the judge a case from 2024 where a court in California enforced a Beijing judgment, the Beijing court is almost guaranteed to enforce your California judgment. Precedent speaks louder than theory.

For a deeper dive into the procedural laws backing this, see our guide on China Civil Procedure Law.

The "Blacklist" Exception

There is one major catch to this new openness. China operates a "negative list" system. Even if your laws are generally friendly, China will refuse reciprocity if your country has unreasonably refused to enforce a Chinese judgment in the past.

What counts as unreasonable?

• Political Refusal: If a foreign court says, "We refuse to enforce this because we do not trust the Chinese political system," China will take offense. They will blacklist that jurisdiction.
• Valid Refusal: If a foreign court says, "We refuse this specific judgment because the defendant was never notified of the trial," that is a valid legal reason. China accepts this. It does not trigger the blacklist because it is a procedural objection, not a systemic one.

Step-by-Step Enforcement Process

So, you have determined that your judgment comes from a "friendly" country. How do you actually get the money? It is not as simple as mailing the judgment to the debtor.

Step 1: The Jurisdiction Check

You cannot just apply to any court in China. You must apply to the Intermediate People's Court in one of two places:

1. Where the debtor is domiciled (their official registered address).
2. Where the debtor's assets are located (e.g., where their factory or bank account is).

If you apply to the wrong court, the case will be transferred, which can add 6 months of delay. Always check the residency first.

Step 2: The Application Package

Chinese courts are bureaucratic. You need to prepare a specific package of documents:

• The Judgment: A certified copy of the foreign judgment.
• Proof of Finality: A letter from the foreign court clerk stating that the judgment is "final and non-appealable." If the appeal period is still open, China will reject you.
• Proof of Service: Evidence that the defendant was legally summoned. (More on this later).
• Translations: Everything must be translated into Chinese by a certified agency.

Step 3: The Review Hearing

Once accepted, the court holds a hearing. This is not a re-trial. The judge will not ask, "Did they really breach the contract?"

Instead, the judge asks procedural questions: "Was the process fair? Did the foreign court have jurisdiction? Does this violate Chinese public policy?"

If you pass this review, the court issues a "Civil Ruling" recognizing the debt.

Step 4: Execution

Now you have a Chinese court order. You can apply to the Enforcement Division to seize assets. They can freeze bank accounts, seal real estate, and even ban the debtor's CEO from traveling on high-speed trains or planes until they pay.

Common Defenses 

When you try to enforce, the Chinese debtor will not just roll over and pay. They will hire lawyers to fight the recognition. Here are the most common defenses they will use, and how to beat them.

Defense 1: "I wasn't served properly."

This is the number one killer of foreign judgments. China is very strict about "Service of Process."

If you sued them in the US, did you notify them by email? Did you just mail it via FedEx? Did you hand it to their receptionist?

In the eyes of a Chinese court, none of that counts. China is a member of the Hague Service Convention. This treaty says legal documents must be sent through the official Central Authority (the Ministry of Justice in Beijing). If you skipped this step to save time in the US lawsuit, your US judgment might be worthless in China. The Chinese court will say the defendant was denied "Due Process."

Defense 2: "The damages are punitive."

Chinese law compensates for actual loss. It generally hates "Punitive Damages" (damages meant to punish the bad guy rather than pay back the victim).

Let's say a US jury awards you $1 million in actual losses and $10 million in punitive damages because the defendant was "malicious." The Chinese court will look at that and say, "We recognize the $1 million debt. But the $10 million violates our public policy." They will slice off the punitive part. This often happens in breach of contract in China cases involving massive penalties.

Defense 3: "This violates Arbitration."

Did your original contract have a clause saying, "All disputes must be resolved by arbitration in Hong Kong"?

If yes, but you ignored it and sued them in a US court anyway, the Chinese court will defend the arbitration clause. They will say the US court had no right to hear the case because the parties agreed to arbitrate. Your judgment will be rejected.

The Costs and Timelines of Reciprocity of Foreign Judgments in China

How much does this cost, and how long does it take? It is important to budget correctly.

The Costs

In China, court fees are usually a percentage of the amount you are claiming. However, for recognition of a foreign judgment, the fee is often a flat fee (around 500 RMB) or a reduced proportional fee. The real cost is legal fees and translation fees.

Translation is expensive because legal documents are long. Budget at least $2,000 to $5,000 just for certified translations.

The Timeline

Do not expect overnight results.

• Acceptance: 1-2 months for the court to accept the filing.
• Review: 6-12 months for the court to hold the hearing and issue the ruling.
• Execution: 3-6 months to actually seize the money (if they have it).

So, you are looking at roughly 12 to 18 months total. It is slow, but it is often the only way to recover a large debt.

Strategy B: Suing Again in China

Sometimes, enforcement is too risky. Maybe your "Service of Process" was bad. Maybe the reciprocity is still vague for your specific country. Is all hope lost?

No. You have a backup option: Re-litigation.

You can simply file a fresh lawsuit in China based on the same contract dispute. This isn't "enforcing" the old judgment; it is starting a new battle. However, you are not starting from zero.

You can submit the foreign judgment as strong evidence. The Chinese judge will read it. They will see that a foreign judge already analyzed the facts and ruled in your favor. While they are not legally bound to follow it, they often will agree with the logic. This makes the Chinese trial much faster and cheaper than a normal lawsuit.

If you are considering this route, read our strategy guide on how to sue a Chinese company directly.

Conclusion

The landscape for reciprocity foreign judgments in China has shifted dramatically. What was once a legal "dead zone" is now a viable path for debt recovery. The Supreme People's Court is actively trying to internationalize China's legal system and protect global trade.

In 2026, the question is no longer "Will China talk to us?" The question is "Did we follow the rules?" If you have a clean, final judgment from a major trading partner, and you served the defendant correctly according to international treaties, you have a very high chance of success.

Final Thought: Do not let a Chinese debtor sleep soundly thinking they are safe behind the Great Wall. With the right preparation, that wall is now permeable. Check your paperwork, find the assets, and file the application.

FAQs: Reciprocity Foreign Judgments China

Can I enforce a US default judgment in China?

Yes, but it is much harder than a contested judgment. A "default judgment" means the defendant didn't show up. Chinese courts are very suspicious of these. They worry the defendant didn't know about the trial. You will need bulletproof evidence that the defendant was legally summoned according to the Hague Service Convention. If there is any doubt about service, the Chinese court will reject it to protect the defendant's rights.

How long is the Statute of Limitations?

You have two years. The clock starts ticking from the last day of the "performance period" specified in your foreign judgment. For example, if the US judgment says "Defendant must pay $1 million by January 1, 2025," you must apply to the Chinese court before January 1, 2027. If you miss this window, you lose your right to enforce.

Does China enforce judgments from Japan and South Korea?

Yes. There is a strong history of reciprocal enforcement between China and its Asian neighbors. South Korea and Singapore, in particular, have very high success rates because of geographic proximity and clear diplomatic understandings.

What happens if the debtor transfers the money to another province?

Once you get the "Recognition Order," it is valid across all of China. However, enforcing it in a different province requires coordination. The court in City A can ask the court in City B to help seize assets. The Chinese court system is increasingly digitized, making it harder for debtors to hide money by simply moving it to a different branch of the same bank.

Is Hong Kong considered "Foreign"?

Legally, yes and no. Hong Kong is part of China, but it has a separate legal system. Judgments from Hong Kong are enforced under a special arrangement, not under general reciprocity rules. It is actually much easier and faster to enforce a Hong Kong judgment than a US or UK one because of this special treaty-like arrangement.

About the Author: The international litigation team at Choi & Huang specializes in helping foreign businesses recover debts and enforce judgments across Mainland China. We have handled cases involving parties from the US, Europe, and Southeast Asia.