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the Application of the Civil Procedure Law in China

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Opinions of the Supreme Peoples Court on Some Issues Concerning the Application of the Civil Procedure Law of the Peoples Republic of China

(Discussed and adopted at the 528th meeting of the Judicial Committee of the Supreme People's Court, and promulgated by Judicial Interpretation No.22 [1922] of the Supreme People's Court on July 14, 1992)

In order to correctly apply the Civil Procedure Law of the People's Republic of China (hereinafter referred to as the Civil Procedure Law), we have put forward the following opinions according to the provisions in the Civil Procedure Law and the practical judicial experience, and hereby provide them for the people's courts at all the levels to implement in their judicial work.

I. Jurisdiction

1. The "major cases involving foreign elements" as prescribed in Article 19 (a) of the Civil Procedure Law refers to the cases involving foreign elements in which the sum of disputed subject matter is large, the case is complex, or the number of the parties concerned residing at abroad is large.

2. Cases concerning patent disputes shall be under the jurisdiction of intermediate people's courts as determined by the Supreme People's Court.

Cases concerning maritime affairs and maritime trade shall be under the jurisdiction of admiralty courts.

3. Higher people's courts of all provinces, autonomous regions and municipalities directly under the Central Government may, according to Articles 19 (b) and 20 of the Civil Procedure Law, raise opinions on the jurisdiction by level over the cases of first instance within their respective jurisdictions based on local actualities, complexity of case facts, sum of subject matter and local influences, and report the said opinions to the Supreme People's Court for approval.

4. The "domicile of a citizen" refers to the place of his permanent residence, and the "domicile of a legal person" refers to the place of its main business or the place of its main office.

5. The "habitual residence of a citizen" refers to the place where he has continuously resided for more than one year from the time when he left his domicile to the time of complaint, except the place where he is hospitalized.

6. If the defendant's permanent urban residence has been written off, the jurisdiction shall be determined according to Article 23 of the Civil Procedure Law; and if both parties' permanent urban residence has been written off, the case shall be under the jurisdiction of the people's court at the place where the defendant resides.

7. If the party's permanent residence has been moved out but has not been settled, and there is the place of habitual residence, the case shall be under the jurisdiction of the people's court at the place of habitual residence; if there is no place of habitual residence, and the permanent residence has been moved out for less than one year, the case shall be under the jurisdiction of the people's court at the place of his original permanent residence; if the permanent residence has been moved out for more than one year, the case shall be under the jurisdiction of the people's court at the place where the defendant resides.

8. If both parties concerned are imprisoned or reeducated through labor, the case shall be under the jurisdiction of the people's court at the defendant's original domicile. Where the defendant has been imprisoned or reeducated through labor for more than one year, the case shall be under the jurisdiction of the people's court at the place of imprisonment or reeducation-through-labor.

9. If several defendants of a case involving claims of alimonies reside in different administrative areas, the case can be under the jurisdiction of the people's court at the domicile of the plaintiff.

10. A case of rejection to the designated guardianship or alteration of the guardianship relationship shall be under the jurisdiction of the people's court at the domicile of the person under guardianship.

11. A lawsuit of divorce as filed by a non-soldier against a solider shall be under the jurisdiction of the people's court at the domicile of the plaintiff if the solider is a non-civilian one.

If both parties involved in a lawsuit of divorce are soldiers, the lawsuit shall be under the jurisdiction of the people's court at the defendant's domicile or the place whether the defendant's employer at or above the level of regiment is located.

12. If either the husband or the wife has left the domicile for more than one year, the case of divorce as filed by the other party shall be under the jurisdiction of the people's court at the domicile of the plaintiff. If both the husband and the wife have left their domicile for more than one year, the case filed by one party shall be under the jurisdiction of the people's court at the place of habitual residence of the defendant; if there is no place of habitual residence, the case shall be under the jurisdiction of the people's court at the place where the plaintiff resides at the time of filing the complaint.

13. For overseas Chinese who got married in China but reside at abroad, if the court at the place of his residence rejects his complaint of divorce for the reason that the lawsuit of divorce shall be under the jurisdiction of the court at the place where the marriage is registered, and the party concerned files a lawsuit of divorce with the people's court, the lawsuit shall be under the jurisdiction of the people's court at the place where the marriage is registered or the last domestic domicile of one party.

14. For overseas Chinese who got married and reside at abroad, if the court at the place of his residence rejects his lawsuit of divorce for the reason that the lawsuit of divorce shall be under the jurisdiction of the court of the country of his nationality, and the party concerned files a lawsuit of divorce with the people's court, the lawsuit shall be subject to the jurisdiction of the people's court at the former domicile or the last domestic domicile of one party.

15. If one party as Chinese citizen resides at abroad and the other party as Chinese citizen resides in China, no matter which party files a lawsuit of divorce with the people's court, the people's court at the place where the party resides in China has the jurisdiction over the lawsuit. If the party residing at abroad files a lawsuit with the court at the country of his residence, and the party residing in China files a lawsuit with the people's court, the people's court with which the lawsuit is filed has the jurisdiction over the lawsuit.

16. Where both parties of overseas Chinese stay but do not settle down at abroad, if one party files a lawsuit of divorce with a people's court, the lawsuit shall be under the jurisdiction of the people's court at the original domicile of the plaintiff or the defendant.

17. The lawsuit filed against a partnership of citizens or a partnership association without its own office shall be under the jurisdiction of the people's court at the place where the defendant is registered. If there is no place of registration and different defendants reside in different administrative areas, the people's courts at the domiciles of any defendants shall have the jurisdiction over the lawsuit.

18. For a lawsuit filed due to a contractual dispute, if the contract has not been actually performed and the domiciles of both parties concerned are not the place of performance as stipulated in the contract, the lawsuit shall be under the jurisdiction of the people's court at the domicile of the defendant.

19. If both parties to a purchase-and-sale contract have stipulated the place of delivery in the contract, the place of delivery as stipulated in the contract shall be the place where the contract is performed; if there is no such stipulation, the place where the contract is performed shall be determined based on the delivery means; in the case of delivery of goods, the place where the contract is performed shall be the place where the goods are delivered; in the case of pick-up of goods, the place where the goods are picked up shall be the place where the contract is performed; and in the case of commissioned consignment or delivery of goods according to the method for delivery of timber and coal, the place where the goods are dispatched shall be the place where the contract is performed.

If the place where a purchase-and-sale contract is actually performed is different from the place of delivery as stipulated in the contract, the place of actual performance shall be the place where the purchase-and-sale contract is performed.

20. For the contract on processing work, the place of actual processing shall be the place where the contract is performed, unless the place where the contract is performed is otherwise stipulated in the contract.

21. For the contract on property leasing or the contract on financial leasing, the place where the leased property is used shall be the place where the contract is performed, unless the place where the contract is performed is otherwise stipulated in the contract.

22. For the contract on compensation trade, the place where the investment recipient's main obligation is fulfilled shall be the place where the contract is performed.

23. The "agreement in a written contract" as prescribed in Article 25 of the Civil Procedure Law refers to the negotiated jurisdiction clause in the contract or the agreement on selection of jurisdiction reached before litigation.

24. If the agreement on selection of jurisdiction by both parties to a contract is ambiguous or there are two or more competent people's courts according to Article 25 of the Civil Procedure Law, the agreement on selection of jurisdiction shall be invalid, and the jurisdiction shall be determined according to Article 24 of the Civil Procedure Law.

25. For a lawsuit filed due to the dispute over an insurance contract, if the target of insurance is a transport vehicle or the goods are in transit, the lawsuit shall be under the jurisdiction of the people's court at the place where the defendant resides, the place where the transport vehicle is registered, the place of destination or the place where the insured accident occurs.

26. The "place of payment on commercial instrument" as prescribed in Article 27 of the Civil Procedure Law refers to the place of disbursement stated in the commercial instrument. The place of domicile or the principal business office of the drawee including the payer by proxy shall be deemed as the place of payment on commercial instrument if the commercial instrument has not stated the place of disbursement.

27. The application for a pay warrant by the creditor shall be governed by Article 22 of the Civil Procedure Law and be under the jurisdiction of the grassroots people's court at the domicile of the debtor.

28. The "place of a tortuous act" as prescribed in Article 29 of the Civil Procedure Law includes the place where the tort is committed and the place where the tortuous consequence takes place.

29. A lawsuit concerning the damage of property or personal injury of another person resulted from bad quality of products shall be under the jurisdiction of the people's court where the products are manufactured, the place where the products are sold, the place the tort is committed or the domicile of the defendant.

30. The dispute over a railway transport contract or the tort dispute over railway transport shall be under the jurisdiction of the railway transportation court.

31. For the preservation of property before the institution of an action, the party concerned shall file an application with the people's court at the place where the property is located.

If an applicant files a lawsuit after a people's court took the measure for preservation of property before the institution of an action, the lawsuit may be filed with the people's court that took the measure for preservation of property before the institution of an action or any other competent people's court.

32. If the party concerned fails to file a lawsuit within the statutory term after applying for preservation of property before the institution of an action, and a lawsuit is resulted from the loss of property to the party against whom the application is filed, the lawsuit shall be under the jurisdiction of the people's court that took the measure for preservation of property before the institution of an action.

33. For a lawsuit over which two or more people's courts have the jurisdiction, the people's court that firstly puts the case on file shall not transfer the case to another competent people's court. If the people's court finds before putting a case on file that the case has been put on the file of another competent people's court, it shall not put the case on its file again; and if it finds that another competent people's court has put this case on file, it shall rule to transfer the case to the people's court that puts the case on file prior to it.

34. After a case has been accepted, the jurisdiction of the people's court with which the case is filed shall not be affected by the change in the domicile of the party concerned or the place of habitual residence.

35. After the competent people's court has accepted a case, it shall not transfer the case to the other competent people's court in the excuse of the alteration of the administrative areas. The appellate case after adjudication or the case brought up for trial according to the procedure for trial supervision shall be tried by the higher people's court of the people's court of original trial; and the case remanded for retrial by the people's court of second instance or the case directed for retrial by the people's court at a higher level shall be reheard or retried by the people's court of original trial.

36. When two people's courts between which there is a jurisdictional dispute can not reach unanimity upon negotiations and report the dispute to their common superior people's court to designate the jurisdiction according to Article 37 (2) of the Civil Procedure Law, if both courts are grassroots people's courts in a same districted city or municipal district, the intermediate people's court of that districted city or municipal district shall timely designate the jurisdiction; if both courts are the people's courts in a same province, autonomous region or municipality directly under the Central Government, the higher people's court of that province, autonomous region or municipality directly under the Central Government shall timely designate the jurisdiction; if both courts are the people's courts in two provinces, autonomous regions or municipalities directly under the Central Government and the higher people's courts can not reach unanimity upon negotiations, the Supreme People's Court shall timely designate the jurisdiction.

The designation of jurisdiction by superior people's courts according to the preceding paragraph shall be reported level by level.

37. For the designation of jurisdiction according to Article 37 of the Civil Procedure Law, the superior people's court shall notify the people's court that submits the request for designation and the designated people's court in written form. After receipt of the notice, the people's court that submits the request for designation shall notify the parties concerned in a timely manner.

II. Participants in Civil Proceedings

38. The chief in charge of a legal person is the legal representative of that legal person. Where there is no chief in charge, the deputy head in charge of relevant work shall be the legal representative. For a legal person with its board of directors, the board chairman shall be the legal representative; for a legal person without the board chairman, the person in charge as authorized by the board of directors may be the legal representative of that legal person.

For any other organization that does not have the status of legal person, the person chiefly in charge shall be its representative.   

39. In the litigation, if the legal representative of a legal person is changed, the new legal representative shall process with the litigation, and submit the identity certification of the new legal representative to the people's court. The litigation conducted by the original legal representative shall be still valid.

This Article shall apply to the lawsuits participated in by other organizations.

40. The "other organizations" as prescribed by Article 49 of the Civil Procedure Law refers to the organizations that are lawfully established, have certain organizational bodies and properties but do not have the status of legal person, and includes:

1. Sole proprietorships and partnerships that have been registered and obtained the business license according to law;

2. Partnership associations that have been registered and obtained business licenses according to law;

3. Chinese-foreign contractual joint ventures and foreign-funded enterprises that have been registered and obtained business licenses according to law;

4. Social organizations that have been approved and registered by the civil affairs administrative department and have obtained a registration certificate of social organization;

5. Branches that are established by legal persons and have obtained business licenses;

6. Branches of the People's Bank of China or various professional banks that are established all over the country;

7. Branches of the People's Insurance Company of China that are established all over the country;

8. Enterprises run by towns, sub-districts or villages that have been registered upon approval and obtained business licenses according to law; and

9. Other organizations meeting the requirements set down in this Article.

41. For a branch established by a legal person not according to law or a branch of a legal person that is established according to law but has not obtained the business license, the legal person that has established the branch shall be the party concerned.

42. For a lawsuit resulted from the act of duty or the act of authorization by the staff member of a legal person or any other organization, the legal person or other organization shall be the party concerned.

43. If an individual industrial and commercial household, individual partnership or private enterprise is affiliated to a collectively-owned enterprise and engages in business activities in the name of collectively-owned enterprise, in the litigation, the individual industrial and commercial household, individual partnership or private enterprise and the said collectively-owned enterprise shall be the co-litigants.

44. If, in the litigation, one party is dead and there is an inheritor, the litigation shall be ruled as suspended. The people's court shall timely notify the inheritor to participate in the litigation as the party concerned, and the litigation conducted by the deceased shall be valid for the inheritor that participates in the litigation.

45. If a person hired by an individual industrial and commercial household, leaseholding rural household or partnership organization causes damage to another person when conducting any production or business activities as prescribed in the employment contract, his employer shall be the party concerned.

46. In the litigation, the owner registered on the business license of an individual industrial and commercial household shall be the party concerned. If the individual industrial and commercial household has a trade name, such trade name shall be stated in legal documents.

If the owner registered on the business license is inconsistent with the actual business operator, the owner and the actual business operator shall be the co-litigants.

47. The whole partners for an individual partnership shall be the co-litigants in the litigation. If the individual partnership has a trade name as approved and registered according to law, such trade name shall be stated in legal documents. The whole partners can select representatives, and shall work out relevant papers for the representatives as selected.

48. If, after the arbitration agency has arbitrated or the people's mediation committee has meditated a dispute between the parties concerned, one party is not satisfied with the arbitration or mediation and files a lawsuit with a people's court, the other party shall be the defendant.

49. If a legal person or any other organization that shall be registered is not registered but conducts civil activities in the name of legal person or other organization, or uses the name of another legal person or other organization under false pretenses for conducting civil activities, or after termination, the legal person or any other organization still uses its name for conducting civil activities, the person directly responsible shall be the party concerned.

50. In the case of amalgamation of enterprise legal persons, for a dispute over civil activities occurring before the amalgamation, the enterprises after amalgamation shall be the party concerned; in the case of split-off of an enterprise legal person, for a dispute over civil activities occurring before the split-off, the enterprises after split-off shall be co-litigants.

51. If an enterprise legal person is directly deregistered without liquidation, and there is a liquidation organization, the liquidation organization shall be the party concerned; and if there is no liquidation organization, the body that made the decision on deregistration shall be the party concerned.

52. For the loan of a business letter of introduction, special seal for contractual uses, blank sealed contract or bank account, the lending entity and the borrowing entity shall be co-litigants.

53. For a lawsuit concerning a dispute over a guarantee contract, if the creditor claims its rights against the guarantor and the warrantee, the people's court shall take the guarantor and the warrantee as codefendants; if the creditor sues only against the guarantor, except that the guarantor shall assume the joint and several liability according to the guarantee contract, the people's court shall notify the warrantee to participate in litigation as the codefendant; and if the creditor sues only against the warrantee, the people's court may only take the warrantee as the defendant.

54. If, in a lawsuit of inheritance, only part of inheritors file the lawsuit, the people's court shall notify other inheritors to participate in litigation as co-plaintiffs; if any inheritors as notified are not willing to participate in litigation but do not clearly express their waiver of substantive rights, the people's court shall still take them ass co-plaintiffs.

55. If the principal and the agent assume the joint and several liability, they shall be co-litigants.

56. If, after the right of a common property was damaged by another person, only part of common property right holders file a lawsuit, other common property right holders shall be taken as co-litigants.

57. If the party that shall participate in litigation together fails to do so, the people's court shall notify him to participate in litigation according to Article 119 of the Civil Procedure Law; the party may also apply to the people's court as an additional party. The people's court shall examine the application filed by the party, and shall rule to reject the application if it is unreasonable; or shall notify in written form the additional party to participate in litigation if the application is reasonable.

58. When the people's court adds any parties to a joint lawsuit, it shall give a notice to other parties concerned. If a plaintiff that shall be added has clearly waived his substantial rights, he may not be added; if the plaintiff is reluctant to participate in litigation but is also reluctant to waive substantial rights, he shall still be added as a co-plaintiff. His failure to participate in litigation will not affect the trial or decision of the people's court.

59. The circumstance "one party has numerous litigants" as prescribed in Articles 54 and 55 of the Civil Procedure Law generally refers to ten persons or more.

60. If the exact number of litigants in one party that has numerous litigants is certain at the time of filing of the case according to Article 54 of the Civil Procedure Law, the whole parties concerned may select common representatives, or part of parties concerned may select their own representatives; if the parties can not select representatives, they may participate in litigation by themselves in a necessary joint action, or may file another lawsuit in a general joint action.

61. If the exact number of litigants in one party that has numerous litigants is uncertain at the time of filing of the case according to Article 55 of the Civil Procedure Law, the parties concerned may select common representatives; if the parties can not select representatives, the people's court may nominate representatives and then negotiate with the parties concerned; if the negotiation fails, the people's court may designate representatives among the parties that file the lawsuit.

62. The number of "representatives" prescribed in Articles 54 and 55 of the Civil Procedure Law shall be two up to five, and each representative may authorize one or two persons as his litigation representatives.

63. For a case accepted according to Article 55 of the Civil Procedure Law, the people's court may make a public notice to notify the right holders to make registration at the people's court. The term of public notice shall be determined based on the specific case and shall not be less than 30 days.

64. A party registered at the people's court according to Article 55 of the Civil Procedure Law shall prove his legal relationship with the opposing party and the damage he has suffered from. If he fails to do so, he will not be registered, and he can file a separate lawsuit. The judgment made by the people's court shall be enforced within the scope of registration. If a right holder that has not been registered files a lawsuit within the limitation of action, the people's court shall affirm his claim and rule to apply to the judgment or ruling it has rendered.

65. According to Article 56 of the Civil Procedure Law, a third party with an independent claim to the subject matter of an action has the right to present claims, facts and reasons to the people's court and become a party concerned; and a third party without an independent claim to the subject matter of an action may apply for participation in litigation or be notified by the people's court to participate in litigation.

66. In the litigation, a third party without an independent claim to the subject matter of an action has the litigious rights and obligations of the parties concerned, and has the right to file an appeal if being ordered to assume civil liability. However, this third party has no right to challenge the jurisdiction, waive or alter claims or apply for withdrawal of the action in the first instance.

67. In the litigation, the guardian of a person of no or limited capacity for civil conduct is his statutory agent. If the guardian has not been determined in advance, the persons qualified for guardianship may determine the guardian through negotiation; if they can not reach unanimity through negotiations, the people's court shall designate a statutory agent for litigation among the persons qualified for guardianship. If there is no guardian prescribed in Article 16 (1) or (2) or Article 17 (1) of the General Principles of the Civil Law for the party concerned, the people's court may designate a relevant organization prescribed in Article 16 (4) or Article 17 (3) of the General Principles of the Civil Law to act as the statutory agent during the course of litigation.

68. In addition to the lawyer, near relative, relevant social organization or the person recommended by the employer of a litigant, the litigant may also authorize any other citizens as his litigation representatives. However, a person of no or limited capacity for civil conduct, a person that may damage the interests of the principal, or a person considered by the people's court as unsuitable for the litigation representative shall not act as the litigation representative.

69. The power of attorney shall be submitted to the people's court by the party concerned before the court session. If the power of attorney only states "general agency" without specific items of authorization, the litigation representative has no right to admit, waive or alter claims, conduct mediation and file a counterclaim or appeal for the party concerned.

III. Evidence

70. For collection and investigation of evidence, the people's court shall assign two or more clerks therefor. The investigation documents shall bear the signatures or seals of investigators, persons under investigation and the note-taker.

71. For the evidence submitted by the parties concerned, the people's court shall issue receipts, which shall indicate the name of evidence, time of receipt, number of copies and number of pages, as well as the signature or seal of the adjudicator or the court clerk.

72. The evidence shall be exhibited at court, and be subject to debate and cross-examination in the court trial. For the evidence that shall be kept confidential, the people's court may decide whether or not to exhibit it in the court session in light of basic circumstances; and shall not openly exhibit it in the court session if it really needs to be exhibited.

73. According to Article 64 (2) of the Civil Procedure Law, the evidence to be investigated and collected by the people's court shall contain:

1. Evidence that can not be obtained by one party or his litigation representative because of some realistic reasons;

2. Evidence that needs to be identified or surveyed according to the opinions of the people's court;

3. Pieces of evidence submitted by the parties concerned contradict with each other and can not be identified; or

4. Other evidence the people's court considers that it needs to collect.

74. During the course of litigation, one party shall assume the burden of proof for the claims it brings forward. However, in the following tort actions, if the defendant denies the tort claimed by the plaintiff, the defendant shall assume the burden of proof:

1. Patent infringement action resulting from an invention patent of product manufacturing method;

2. Tort action for personal damage caused by highly dangerous operations;

3. Action for damages caused by environmental pollution;

4. Tort action for personal damage caused by the collapse, breaking off or falling of a building or other facilities or the thing that is laid or hung on the building;

5. Tort action for personal damage caused by breeding of animals; or

6. Relevant legal provisions prescribe that the defendant shall assume the burden of proof.

75. The parties concerned need not to assume the burden of proof for the following facts:

1. One party has clearly admitted the facts of a case or the claims as presented by the other party;

2. Facts that are known by all people, natural laws and theorems;

3. Facts that can be induced from legal provisions or known facts;

4. Facts affirmed in the judgment of the people's court that has taken effect; and

5. Facts that have been proved in the valid notarial reports.

76. For the evidence that can not be submitted by one party for a while, the people's court shall request the party to submit evidence within a designated reasonable term based on specific circumstances. If one party really has difficulty in submission of evidence within the designated term, he shall apply to the people's court for postponement before expiry of the designated term, and the term to be postponed shall be decided by the people's court.

77. The certification documents submitted by a relevant entity to the people's court according to Article 65 of the Civil Procedure Law shall bear the signature or seal of the person in charge of the entity, as well as the seal of the entity.

78. Where the evidence materials are photocopies, if the provider refuses to submit originals or clues of originals, there is no other evidence that can confirm the said evidence materials, and the opposing party refuses to recognize them, the said evidence materials shall not be taken as the grounds for affirmation of facts in the litigation.

IV Time Periods or Service

79. According to Article 75 (2) of the Civil Procedure Law, all the time periods calculated by day in civil proceedings shall start from the next day.

80. For the "time period for placing a case on file" as prescribed in Article 112 of the Civil Procedure Law, if the bill of complaint is not complete and the plaintiff is ordered to supplement it, the said time period shall start from the next day after the plaintiff has supplemented the bill of complaint. If a case is transferred from a superior people's court to a lower people's court or from a grassroots people's court to the relevant people's tribunal for acceptance, the said time period shall start from the next day after the people's court or tribunal with which the lawsuit is filed has received the bill of complaint.

81. For the service of litigation documents on a legal person or other organization, the legal representative of the legal person or the main person in-charge of the organization or the person in the office, mail room or janitor's room responsible for receipt of mails shall sign for litigation documents or bear seals; otherwise, the service by leaving the rejected legal document at the place of abode shall be applied.

82. If the recipient refuses to accept a litigation document, and the representative of the relevant grassroots organization or the employer of the recipient as well as other witnesses are unwilling to affix a signature or seal on the receipt of service, the person serving the document shall give indication of the circumstance on the receipt of service, and leave the legal document at the abode of the recipient, and then the service shall be considered completed.

83. If the recipient has a litigation representative, the people's court may serve the legal document either on the recipient or on his litigation representative. If the recipient has designated his litigation representative for receipt of legal document, the service by leaving the rejected legal document at the place of abode may be applied in the case of service of a legal document on the litigation representative.

84. A mediation paper shall be served directly on the parties concerned, and the service by leaving the rejected legal document at the place of abode shall not be applied. If any parties concerned can not sign for the mediation paper by himself, he can designate an agent for doing so.

85. For the service by post, a receipt of service shall be attached. If the date of receipt as stated on the receipt of a registered letter is inconsistent with the one as stated on the receipt of service, or the receipt of service has not been mailed back, the date of receipt as indicated on the receipt of a registered letter shall be the date of service.

86. If a legal document is served by the entrusted people's court according to Article 80 of the Civil Procedure Law, the entrusting people's court shall issue a power of attorney and attach the legal document for service and the receipt of service, and the date stated by the recipient on the receipt of service shall be the date of service. 

87. If a legal document is forwarded by a relevant entity according to Article 81 or 82 of the Civil Procedure Law, the date of receipt as stated by the recipient on the receipt of service shall be the date of service.

88. For the service by public notice, a public notice shall be posted on the bulletin board of the court or at the original domicile of the recipient or on the newspaper. Where there are special requirements for the service by public notice, the public notice shall be made in the required manner. After expiration of the term of public notice, the service shall be considered as completed.

89. For the service of the duplicate of a bill of complaint or a petition for appeal by public notice, the people's court shall indicate the key points of complaint or appeal, the term for the recipient to make defense as well as the legal consequences if the recipient fails to make defense within the stipulated term. For the service of a subpoena by public notice, the people's court shall indicate the place and time for court appearance as well as the legal consequences if the recipient fails to appear in court at the designated place and time. For the service of a judgment or ruling, the people's court shall indicate main adjudication items, as well as the rights of appeal, term of appeal and the appellate people's court in the case of the first instance.

90. If any parties concerned reject to sign for a judgment or ruling when the people's court pronounces a judgment or ruling at fixed time, the service shall be considered as completed, and the circumstance shall be indicated in the transcripts of pronouncement.

V. Mediation

91. If, after acceptance of a case, the people's court deems upon examination that the legal relationship is explicit and facts are clear, it can directly conduct mediation after having solicited the consent of both parties.

92. When the people's court hears civil cases, it shall conduct mediation on the principle of free will and legality. If one party or both parties are unwilling to conduct mediation, the people's court shall render judgment in a timely manner.

The people's court shall conduct mediation when hearing the cases of divorce, but shall not conduct long-term mediation with no decisive results.

93. When the people's court mediates a case, if the parties can not appear in court, upon special authorization, his authorized agent can participate in mediation, and the mediation agreement as concluded may be signed by his authorized agent.

If one party to a case of divorce can not appear in court for mediation under a special circumstance, except that that party himself can not express his ideas, he shall present written opinions.

94. For a case of divorce in which one party is a person of no capacity for civil conduct, his statutory agent shall participate in litigation for him. If the statutory agent reached an agreement with the other party and requests to issue a judgment, the people's court can work out a judgment based on the contents in the agreement.

95. If one party refuses to sign for the mediation paper, the mediation paper will not come into effect, and the people's court shall notify the other party in a timely manner.

96. If the mediation paper can not be served on both parties at court, the day when the party that receives the mediation paper behind makes signature shall be the day when the mediation paper comes into effect.

97. For a case in which a third party without an independent claim to the subject matter of an action is a participant, if the people's court needs to impose obligation on the third party at the time of mediation, upon consent of the third party, the mediation paper shall be served on the third party at the same time. If the third party goes back on his words before the mediation paper is served, the people's court shall render the judgment in a timely manner.

VI. Property Preservation and Advance Execution

 98. If the people's court orders an applicant to provide security when adopting the measure of property preservation before the institution of an action or during the course of an action according to Article 92 or 93 of the Civil Procedure Law, the amount of security shall be equal to the amount asked for preservation.

99. When a people's court adopts the measure for preservation of seasonal goods, fresh or decayable goods, or goods unsuitable for long-time preservation, it can order the party concerned to timely dispose of the said goods and keep money therefrom; and when necessary, the people's court may sell off the said goods and keep the money.

100. When a people's court adopts the measures of seizure or detention of property during the course of property preservation, it shall properly keep the property as seized or detained. The parties concerned, the relevant entity or individual responsible for custody as well as the people's court shall not use the said property.

101. When the people's court adopts the measure of property preservation to irremovable property or specific removable property (such as vehicles and ships, etc.), it may adopt the measure of property preservation by seizing the certificate of relevant property entitlements and informing the relevant property right registration department not to handle the transfer formality for the relevant property; and when necessary, the people's court may seize or detain the relevant property.

102. A people's court may adopt the measure of property preservation to the object under mortgage or lien, but the mortgagee or lienor has the priority of compensation.

103. For a case of appeal filed because the party is not satisfied with the judgment of first instance, if the party concerned transfers, hides, sells or destroys the property before the people's court of second instance receives the case as filed, and the measure of property preservation shall be adopted, the people's court of first instance can adopt the measure of property preservation upon application of the party concerned or upon the strength of its authority. The ruling about property preservation made by the people's court of first instance shall be timely reported to the people's court of second instance.

104. For the receivable proceeds due to the debtor, the people's court may adopt the measure of property preservation and restrict the debtor from drawing these proceeds, and notify the relevant entity to offer assistance in the execution.

105. If the debtor's properties are not enough for the request for property preservation but the debtor has mature creditor's rights to the third party, the people's court may rule, upon application of the creditor, that the thirty party shall not make payment to the debtor. If the third party requests to make payment, the property or money shall be submitted to the people's court.

106. The "advance execution" prescribed in the Civil Procedure Law shall be conducted by the people's court after a case has been accepted but before the final judgment is made. The advance execution shall be limited to the scope of claims of the party concerned and to the urgent needs for the life, production or business operation of the party concerned.

107. The "emergencies" prescribed in Article 97(c) in the Civil Procedure Law include:

1. It is necessary to immediately stop infringement and remove obstacle;

2. It is necessary to immediately stop some act;

3. It is necessary to immediately return the money for purchase of production raw materials and production tools; and

4. The insurance compensation in the urgent need for recovery of production or business operation.

108. After a people's court rules to take the measure of property preservation, except that the people's court that rendered the preservation ruling or the superior thereof removes the property measure, no entity may remove the property measure within the term of property preservation.

109. The validity of a property preservation ruling in the litigation shall generally extend to the time when the effective legal document is enforced. If the preservation measure needs to be removed during the course of litigation, the people's court shall timely render a ruling to remove the preservation measure.

110. For a reconsideration application filed by the party concerned regarding the objection to accept the ruling of property preservation or advance execution, the people's court shall timely examine it. The people's court shall notify to reject the application of the party concerned if the ruling is correct; or shall render a new ruling to alter or cancel the original ruling if the original ruling is improper.

111. If, after the advance execution by the people's court, an applicant shall return the proceeds obtained from advance execution according to the judgment that has come into force, Article 214 of the Civil Procedure Law shall be applied.

VII. Compulsory Measures against Obstruction of Civil Actions

112. The "defendant that shall appear in court" as prescribed in Article 100 of the Civil Procedure Law refers to the defendant who has the obligation of support, upbringing or maintenance and whose appearance in court is indispensable for finding of case facts.

If the statutory agent of a minor who causes damage to the State, the collective or another person must appear in court, and he has been served twice with subpoena but still refuses to appear in court without legitimate reasons, the people's court may summon him to court by force. 

113. A warrant shall be issued for the summon by force and be directly served on the summoned person. Before the summon by force, the summoned person shall be informed of the consequences in the case of refusal to appear in court, and may be summoned to court by force if he still refuses to appear in court after criticism and education.

114. If a people's court needs to detain any litigation participants or others according to Article 101 or 102 of the Civil Procedure Law, it shall be subject to approval by the court president, a written decision of detention shall be made, and the detainee shall be transferred by judicial police to the local public security organ for custody.

115. If the detainee does not stay within the jurisdiction of the people's court that makes the decision of detention, this people's court shall assign clerks to the people's court at the place where the detainee stays and request the latter to offer assistance in enforcement, and the entrusted people's court shall timely assign clerks for assistance in enforcement. If the detainee applies for reconsideration or admits and corrects errors during the course of detention, and the measure of detention needs to be removed in advance, the entrusted people's court shall inform the circumstance or bring forward a suggestion to the entrusting people's court for examination and decision.

116. If the measure of detention needs to be immediately taken in the case of uproars, courtroom disturbance or defiance to the execution of public affairs by violence or menace, etc., the people's court shall report to its president for supplementing the approval formality after detaining the offenders. If the court president deems that the measure of detention is improper, the measure of detention shall be removed.

117. If the detainee admits his mistake and repents during the course of detention, he may be ordered to make a statement of repentance and then the measure of detention may be removed in advance. The removal of detention in advance shall be subject to approval by the court president, and a written decision on removal of detention in advance shall be made and given to the public security organ in charge of custody of the detainee for enforcement.

118. The measures of fine and detention prescribed in Articles 101 and 102 of the Civil Procedure Law may be applied either separately or concurrently.

119. The measures of fine and detention against the same obstruction of civil actions shall not be applied continuously. But if new obstruction of civil actions occurs, the people's court may impose fine and detention over again.

120. If the people's court detains or imposes fine on an entity or individual pressing a debt payment by unlawfully detaining a person or illegally seizing other people's property according to Article 106 of the Civil Procedure Law, the provisions in Articles 104 and 105 of this Law shall be applied.

121. If the person on which the measure of fine or detention is imposed is not satisfied with the decision on fine or detention and applies for reconsideration, the people's court at the higher level shall make a decision within five days after receipt of the application for reconsideration, and notify the people's court at the lower level and the parties concerned of the reconsideration conclusion.

122. If the people's court at the higher level holds that the compulsory measure is improper at the time of reconsideration, it shall make a written decision to cancel or change the decision of detention or fine as made by the people's court at the lower level; and may give an oral notice and send out the written decision within three days if the circumstance is urgent.

123. If any parties concerned are under any of the following circumstances, the people's court may handle it according to Article 102 (1) (f) of the Civil Procedure Law:

1. Hiding, transferring, selling or damaging property after a legal document has come into effect, and thus causing the people's court unable to enforce the legal document;

2. Obstructing or defying the enforcement of the people's court by violence, menace or any other means; or

3. Having the capacity but refusing to enforce the legally effective judgment, ruling, mediation paper or pay warrant rendered by the people's court.

124. If any entities are under any of the following circumstances, the people's court may handle it according to Article 102 of the Civil Procedure Law:

1. Illegally transferring the deposits frozen by the people's court or illegally releasing the freeze of the said deposits;

2. Obstructing judicial personnel to inquire about, freeze or transfer bank deposits by violence, menace or any other means; or

3. Revealing information to the party concerned and assisting him in transfer or hiding of property after receipt of a notice on assistance in enforcement as sent out by the people's court.

125. Where it is necessary to impose criminal liabilities on relevant persons according to Article 101 of the Civil Procedure Law, the judicial organization that hears the case may directly render a judgment, and shall permit the parties concerned to express opinions or authorize defenders to make defenses before the judgment is rendered.

126. Where it is necessary to impose criminal liabilities on relevant persons according to Article 102 (1) (f) of the Civil Procedure Law, the criminal tribunal of the people's court may directly accept the case and render a judgment.

127. Where it is necessary to impose criminal liabilities on relevant persons according to Article 102 (a) up to (e) or Article 106 of the Civil Procedure Law, it shall be handled according to the Criminal Procedure Law.

VIII. Litigation Costs

128. If one party applies to the people's court for the property preservation before the institution of an action according to Article 93 of the Civil Procedure Law, the litigation costs shall be paid according to Article 8 (b) of the Measures for People's Courts to Collect Litigation Costs.

129. For the case heard according to Article 55 of the Civil Procedure Law, no case acceptance fee needs to be paid in advance, and the losing party shall supplement the case acceptance fee based on the amount of subject matter after the case has been settled.

130. If a right holder that has not been registered applies for enforcement to the people's court according to Article 55 (4) of the Civil Procedure Law, the charge of petition for enforcement shall be paid according to Article 8 (a) of the Measures for People's Courts to Collect Litigation Costs.

131. If the people's court rules to reject a case, the party concerned needs not to pay litigation costs. If the party concerned is not satisfied with the ruling and files an appeal, litigation costs shall be paid according to Article 5 (c) of the Measures for People's Courts to Collect Litigation Costs.

132. If one party applies for a pay warrant to a people's court according to Article 189 of the Civil Procedure Law, the 100 yuan of application fee needs to be paid for each case. If the procedure of hastening debt recovery is finalized due to the objection of the debtor, the application fee shall be borne by the applicant; if the debtor does not bring forward any objections, the application fee shall be borne by the debtor.

133. If the debtor files a new lawsuit after the procedure for hastening debt recovery is finalized, the litigation costs shall be paid according to the Measures for People's Courts to Collect Litigation Costs.

134. If one party applies to a people's court for public summons for exhortation according to Article 193 of the Civil Procedure Law, the 100 yuan of application fee needs to be paid for each case. The applicant fee and the announcement fee shall be borne by the applicant.

135. If one party files a lawsuit with the people's court according to Article 196 or 198 of the Civil Procedure Law, the applicant shall pay the case acceptance fee according to Article 5 (d) of the Measures for People's Courts to Collect Litigation Costs.

136. If one party applies to the people's court for bankruptcy liquidation according to Article 199 of the Civil Procedure Law, the party may not pay the case acceptance fee in advance, and the costs of bankruptcy proceedings may be allotted from insolvent property.

137. For a case of retrial lodged by the people's court upon the strength of authority or protested by the people's procuratorate, the party concerned needs not to pay litigation costs.

138. For the commissioned enforcement, the entrusted people's court may not collect fees from the entrusting people's court. The expenses actually paid for the enforcement shall be collected according to the Measures for People's Courts to Collect Litigation Costs.

IX. Ordinary Procedure of First Instance

139. If a complaint does not comply with the requirements for acceptance, the people's court shall rule to reject the complaint. If the people's court finds that a complaint does not comply with the requirements for acceptance after putting the case on file, it shall rule to dismiss the complaint.

A ruling of rejection shall be signed by the judge who is responsible for case-filing examination and the court clerk, and a ruling of dismissal shall be signed by the judge who is responsible for hearing the case and the court clerk. 

140. If one party uses the words of vituperation or personal assault in the bill of complaint, and the service of a duplicate may cause the intensification of contradictions and is not good for the settlement of the case, the people's court shall persuade the party to alter the bill of complaint according to facts. If the party refuses to do so, the duplicate of the bill of complaint may be served.

141. If the people's court has no jurisdiction over a case, it shall notify the plaintiff to file the case to the competent people's court; if the plaintiff adheres to file the case with it, it shall rule to reject the case; if the people's court finds that it has no jurisdiction over the case after putting the case on file, it shall transfer the case to the competent people's court.

142. Where the people's court has ruled to reject or dismiss a case, if the plaintiff files the case again, and the complaint complies with the essentials of complaint, the people's court shall accept the case.

143. If a plaintiff must pay the case acceptance fee in advance but fails to do so, the people's court shall notify him to make advance payment. If the plaintiff still fails to make advance payment after being notified, or his application for reduction, postponement and exemption of case acceptance fee is not approved by the people's court but he still fails to make advance payment, the people's court will rule that the plaintiff has automatically withdrawn the action.

144. If, after the party concerned has withdrawn an action or the people's court has taken the case as a nol pros, the party concerned files a lawsuit again for the same claims, the people's court shall accept the case.

For a case of divorce as withdrawn by the plaintiff or taken as a nol pros, if one party files a lawsuit again within six months without new circumstances or reasons, the people's court may reject the case by referring to Article 111 (g) of the Civil Procedure Law.

145. Where the parties concerned have voluntarily stipulated an arbitration clause in the written agreement or reached the written arbitration agreement after the dispute occurs, if one party files a lawsuit with the people's court, the people's court shall rule not to accept the case and notify the plaintiff to submit the dispute to the arbitration agency for arbitration according to Article 111 (b) of the Civil Procedure Law, unless the arbitration clause or arbitration agreement is invalid or becomes invalidated, or the contents in the arbitration clause or agreement are ambiguous and thus can not be enforced.

146. If the arbitration agency selected by the parties concerned in the arbitration clause or agreement does not exist, or the matters being arbitrated exceed the authority of the arbitration agency, the people's court shall be entitled to accept the lawsuit filed by one party.

147. For a civil lawsuit accepted because the arbitration clause or agreement is invalid or becomes invalidated, or the contents in the arbitration clause or arbitration agreement are ambiguous and thus can not be enforced, if the defendant challenges the jurisdiction of the people's court, the people's court with which the lawsuit is filed shall render a ruling about the jurisdiction.

148. Where one party does not indicate that an arbitration agreement has been concluded when filing the lawsuit with the people's court, and the opposing party also files his defense with the court after the people's court has accepted the case, we will deem that this people's court has jurisdiction over the case.

149. If a patient and his family have no objection to a conclusion of medical negligence as made by the technical appraisal committee of medical negligence, and only file a lawsuit with the people's court to require the medical institution to make compensation for economic losses resulting from the medical negligence, the case shall be accepted.

150. For a case of divorce in which the judgment does not grant divorce or both parties have become reconciled after mediation and for a case of adoption in which the adjudication or mediation has been conducted to maintain the adoptive relationship, if the defendant files a lawsuit with the people's court, the conditions prescribed in Article 111 (g) of the Civil Procedure Law will not be applied.

151. If the whereabouts of the husband or the wife are unknown, the other party complains to the people's court for divorce but not for declaration of the party whose whereabouts are unknown as missing or dead, the people's court shall accept the case, and serve the litigation documents on the party whose whereabouts are unknown by a public notice.

152. For a case involving claims of alimonies, supports for children or elders, pension for the disabled or the family of a decedent, after the judgment has come into force, if one party files a new lawsuit for increase or reduction of expenses without any new circumstances or new reasons, the people's court shall accept the lawsuit as a new case.

153. If one party files a lawsuit after expiration of the limitation of action, the people's court shall accept the case. If the people's court finds, after acceptance, that no cause for suspension, termination or postponement of the limitation of action occurs, it shall decide to reject the claims.

154. The "trade secrets" as mentioned in Articles 66 and 120 of the Civil Procedure Law mainly refers to technical secrets, business intelligence and information, etc., such as manufacturing techniques, formulas, business contacts, buying and selling channels and other industrial and commercial secrets the party concerned is unwilling to disclose.

155. If the people's court hears a case according to the general procedure, it shall, three days before court session, summon the parties concerned by a subpoena, and notify the litigation representatives, witnesses, appraisers, surveyors and translators to appear in court by a notice. If any parties concerned or any other litigation participants stay in another place, the people's court shall arrange necessary time of traveling for them.

156. If, after a case has been accepted but before the court debate is finalized, the plaintiff adds any claims, the defendant files a counterclaim, or the third party brings forward any claims regarding this case, and the said claims or counterclaim can be heard on a consolidated basis, the people's court shall hear them on a consolidated basis.

157. For a case of divorce involving a person of no capacity for civil conduct, his statutory agent shall appear in court; if his statutory agent can not appear in court, the people's court shall render a judgment after the facts have been ascertained.

158. Where the statutory agent of one party of no capacity for civil conduct refuses to appear in court without any justifiable reasons after being summoned to do so by a subpoena, if the party is the plaintiff, the people's court may take the case as a nol pros according to Article 129 of the Civil Procedure Law; and if the party is the defendant, the people's court may render the default judgment according to Article 130 of the Civil Procedure Law.

159. If the third party with independent claims refuses to appear in court without any justifiable reasons after being summoned to do so by the people's court with a subpoena, or withdraws from court session midway without approval by the court, the people's court may consider that the third party has withdrawn from the case by referring to Article 129 of the Civil Procedure Law.

160. If, after the third party with independent claims has participated in the litigation, the plaintiff applies for withdrawal of the case, the people's court shall, after granting the approval, take the third party with independent claims as the plaintiff of another case, and take the plaintiff and the defendant in the original case as the defendants of another case, and process with the litigation separately.

161. For a case in which the plaintiff applies for withdrawal of the action or which can be taken as a nol pros, if there is any illegal act committed by one party that needs to be handled, the people's court may not approve the withdrawal or not take the case as a nol pros.

162. If the third party without independent claims refuses to appear in court without any justifiable reasons after being summoned to do so by the people's court with a subpoena, or withdraws from court session midway without approval by the court, it will not affect the trial of the case. The third party without independent claims on which the people's court imposes civil liability shall be entitled to file an appeal.

163. Where, after the pronouncement in the first instance, the people's court of original instance discovers any adjudication error, if the party concerned files an appeal within the time limit for appeal, the people's court of original instance may present opinions that there is an error in the original judgment, and submit its opinions to the people's court of second instance, and the people's court of second instance will hear the case according to the procedure of second instance; if neither party concerned files an appeal, the case shall be handled according to the procedure of trial supervision.

164. The "time limit for concluding a trial" as prescribed in Article 135 of the Civil Procedure Law refers to the period starting from the next day after the case filing and expiring on the day after the judgment is pronounced or the mediation paper is served, excluding the duration of public notice, the duration of expert evaluation, the duration for hearing the challenge to the jurisdiction put forward by the party concerned as well as the duration for hearing the jurisdictional dispute between the people's courts.

165. If the judgment of first instance or the ruling for which an appeal can be filed can not be served on both parties at the same time, the time limit for appeal shall be calculated from the next day after each party has received the judgment or ruling.

166. The "typo" as mentioned in Article 140 (1) (g) of the Civil Procedure Law refers to the clerical error and miscalculation in a legal document, omission and miscalculation of litigation expenses as well as other clerical errors.

167. When the cause for suspension of action is removed and the judicial proceeding is resumed, it is unnecessary to cancel the original ruling, and the ruling for suspension of action shall immediately become invalidated after the people's court notifies or allows both parties to proceed with the action.

X. Summary Procedure

168. The "clear facts" of a simple civil case as prescribed in Article 142 of the Civil Procedure Law means that both parties make basically consistent statements about the facts of a dispute and can provide reliable evidence and the people's court needs not to investigate and collect evidence for ascertaining facts and distinguishing the right and the wrong; the "definite relationship of rights and obligations" means that it is clear that who is the obligor and who is the obligee; and the "minor dispute" means that there is no difference in principle regarding the right and the wrong of the case, the responsibilities and the dispute over the subject matter of an action.

169. For a case in which the whereabouts of the defendant are unknown at the time of complaint, the summary procedure shall not be applicable to the hearing thereof.

170. For a case heard according to the summary procedure, the time limit for concluding the trial shall not be postponed. If, during the course of trial, case facts are discovered as complicated, and the case needs to be heard according to the general procedure, the summary procedure may be changed into the general procedure, the case shall be heard by a collegial bench, and both parties shall be notified of it in a timely manner. The time limit for concluding the trial shall be calculated from the next day after the case filing.

171. For a case which has been heard according to the general procedure, no matter what happens during the course of trial, the general procedure shall not be changed into the summary procedure for the case.

172. For a case which is heard according to the summary procedure, the people's court shall notify the contents of complaint to the defendant in oral or written way, and summon the parties concerned and the witness in oral or any other convenient ways, a judge will hear the case individually, the court clerk will be responsible for taking notes, and the judge shall not hear the case and take notes simultaneously. If a case is concluded by a judgment, the judgment shall be publicly pronounced according to Article 134 of the Civil Procedure Law.

173. The judgments, rulings and mediation papers made by a people's court shall bear the seal of the people's court, and the seal of a people's tribunal may not be used to substitute the seal of a grassroots people's court.

174. Cases remanded for new trial and cases retried according to the procedure of trial supervision shall not be heard by the summary procedure.

175. For a case heard by the summary procedure, the case files shall contain: (1) bill of complaint or transcripts of oral complaint; (2) bill of defense or transcripts of oral defense; (3) power of attorney in the case of a lawsuit proceeded with by an agent; (4) necessary evidence; (5) transcripts for inquiry of the parties concerned; (6) transcripts of trial (including mediation); (7) judgment, mediation paper, ruling or mediation agreement; (8) transcripts of service and pronouncement; (9) enforcement information; and (10) receipt of litigation costs.

XI. Procedure of Second Instance

176. If both parties and the third party have filed their own appeals, all of them shall be deemed as the appellants.

177. If one or some persons of one party in a necessary joint action file an appeal, the people's court shall handle it as follows:

1. If the appeal is filed against the opposing party due to an objection to the distribution of rights and obligations and does not involve the interests of any other co-litigants, the people's court shall take the opposing party as the appellee, and list other co-litigants in light of their original litigation status;

2. If the appeal is filed due to an objection to the distribution of rights and obligations among the co-litigants, and does not involve the interests of the opposing party, the people's court shall take other co-litigants as the appellees, and list the opposing party in light of his original litigation status; and

3. If the appeal is filed due to an objection to the distribution of rights and obligations between both parties and among the co-litigants, the people's court shall take all the other parties concerned that have not filed the appeal as the appellees.

178. If the party concerned orally expresses his request for appeal when the pronouncement is made by the people's court of first instance or the judgment or ruling is served, the people's court shall notify that party to file a petition for appeal within the statutory time limit for appeal. If the party concerned fails to file a petition for appeal within the statutory time limit for appeal, the people's court will deem that the party concerned has not filed any appeal.

179. The statutory agent of a person of no or limited capacity for civil conduct can file a lawsuit on behalf of that person.

180. When the people's court of second instance is reviewing relevant facts and the application of laws as appealed by the appellant according to Article 151 of the Civil Procedure Law, if it finds that there are any definite errors in the original judgment other than the claims of appeal, it shall correct these errors, either.

181. If the people's court of second instance finds that the people's court of first instance has violated statutory procedures as follows, and which may affect the correct adjudication of the case, the people's court of second instance shall rule to cancel the original judgment according to Article 153 (1) (d) of the Civil Procedure Law and remand the case to the people's court of original trial for new trial:

1. A judge for hearing this case or the court clerk shall recuse himself but fails to do so;

2. The judgment is rendered without court session;

3. The default judgment is rendered without summon of the party concerned by a subpoena for a case heard according to the general procedure; or

4. Any other serious violation of statutory procedures.

182. For the claims put forward by the party concerned in the first instance, if the people's court of original instance fails to hear them and render a judgment for them, the people's court of second instance can conduct mediation on the principle of free will of the parties concerned. If the parties concerned can not reach unanimity through mediation, the case shall be remanded for new trial.

183. If the party concerned that must participate in litigation fails to do so in the first instance, the people's court of second instance may conduct mediation on the principle of free will of the parties concerned; and shall remand the case for new trial if the parties concerned can not reach unanimity through mediation. The ruling about remanding the case for new trial needs not to list the party that shall be added.

184. In the procedure of second instance, if the plaintiff of original instance adds any independent claims or the defendant of original instance files a counterclaim, the people's court of second instance may conduct mediation regarding the newly added claims or counterclaim on the principle of free will of the parties concerned. If the parties concerned can not reach unanimity through mediation, the people's court shall notify the party concerned to file a new lawsuit.

185. For a case for which the judgment of first instance disapproves the divorce, if, after the appeal, the people's court of second instance holds that a judgment on approval of divorce shall be rendered, it may, on the principle of free will of the parties concerned, conduct mediation together with the issues concerning the bring-up of children and the distribution of properties. If the parties concerned can not reach unanimity through mediation, the people's court shall remand the case for new trial.

186. For a case heard by the procedure of second instance, if the people's court holds that the case shall not be accepted by a people's court, the people's court of second instance can directly rule to cancel the original judgment and dismiss the complaint.

187. If the people's court of second instance finds that it is wrong for the people's court of first instance to render the ruling of rejection, it shall, when canceling the original ruling, direct the people's court of first instance to put the case on file and accept it; and if the people's court of second instance finds that it is wrong for the people's court of first instance to render the ruling of dismissal, it shall, when canceling the original ruling, direct the people's court of first instance to hear the case.

188. For the following cases of appeal, the people's court of second instance may render direct judgments or rulings without court sessions according to Article 152 of the Civil Procedure Law:

1. Cases in which the rulings of first instance are rendered for the rejection of complaint, the dismissal of complaint or the challenge to the jurisdiction;

2. Cases in which the claims of appeal brought forward by the party concerned obviously can not be established;

3. Cases in which the facts are clearly ascertained but the laws are incorrectly applied in the judgment of original instance; and

4. Cases that need to be remanded for new trial because their original adjudication does not comply with statutory procedures, and which may affect the correct decision.

189. If, in the procedure of second instance, the legal person or other organization as the party concerned is split off, the people's court may directly take the legal persons or other organizations after the split-off as the co-litigants; in the case of amalgamation, the people's court may take the legal person or other organization after amalgamation as the party concerned, and needs not to remand the case to the people's court of original trial for new trial.

190. If, in the procedure of second instance, the party concerned applies for withdrawal of the appeal, the people's court holds upon review that there exist any definite errors in the judgment of first instance, or both parties collude to damage the interests of the State or the collective, social interests or the legitimate rights and interests of another person, the people's court shall not approve the withdrawal.

191. If the parties reach a mediation agreement in the second instance, the people's court may, upon request of the parties concerned, review the mediation agreement reached by both parties and make a mediation paper and serve it on the parties concerned; if the action is withdrawn due to mediation, the people's court shall approve the withdrawal if the conditions for withdrawal of an action are complied with upon review.

192. The people's court of second instance may pronounce a judgment on its own, or may entrust it to the people's court of original trial or the people's court at the domicile of the party concerned.

XII  Special Procedure

193. If, in the litigation, an interested person of one party claims that the party is suffering from a mental disease and requests to announce him as a person of no or limited capacity for civil conduct, the interested party shall file an application with the people's court, and the people's court shall put the case on file for trial according to the special procedure, and the original action shall be terminated.

194. For a case concerning the declaration of missing or death, the people's court may, upon request of the applicant, clean up the properties of the person whose whereabouts are unknown, and designate a property administrator for the duration of action. After expiration of the term of public notice, if the people's court decides to declare the missing, it shall simultaneously designate a property administrator for the missing person according to Article 21 (1) of the General Principles of the Civil Law.  

195. If, after the property administrator has been designated by the people's court for a missing person, the administrator applies for change, the application shall be heard according to the relevant provisions on the special procedure in the Civil Procedure Law. If the application is reasonable, the court shall rule to cancel the applicant's status as the administrator, and simultaneously designate another property administrator; if the application is unreasonable, the court shall rule to reject the application. If another interested party of the missing person applies for change of the property administrator, the people's court shall notify him to file a lawsuit against the original property administrator, and the case shall be heard according to the general procedure.

196. If, after the people's court has adjudicated to declare the missing of a citizen, the interested person thereof applies to the people's court for declaration of the death of the missing person, and there are four years or more from the next day of missing, the people's court shall accept the application, the judgment for declaration of missing shall be the proof to prove the missing of the citizen, and the people's court shall also make a public notice according to Article 168 of the Civil Procedure Law.

197. For a case of holding a property unclaimed, if there is someone who brings forward any claims regarding the property during the term of public notice, the people's court shall rule to conclude the special procedure, and notify the applicant to file a new lawsuit. And the case shall be heard according to the general procedure.

198. If the designated guardian does not accept the designation, he shall file a lawsuit with the people's court within 30 days from the next day after receipt of the notice. Upon trial, if the court holds that the designation is proper, it shall rule to reject the complaint; if the court holds that the designation is improper, it shall decide to cancel the designation, simultaneously designate a new guardian; and serve the judgment on the plaintiff, the original designator, and the guardian newly designated in the judgment.

XIII. Procedure of Trial Supervision

199. If the president of a people's court at any level finds some definite errors in a legally effective judgment or ruling rendered by his court, and the judicial committee decides to retry the case upon discussion, the court shall rule to terminate the enforcement of the original judgment or ruling.

200. If the Supreme People's Court finds some definite errors in a legally effective judgment or ruling rendered by a local people's court at any level, or if a people's court at a higher level finds some definite errors in a legally effective judgment or ruling of a people's court at a lower level, the Supreme People's Court or the people's court at the higher level shall also indicate the termination of the enforcement of the original judgment or ruling in the ruling about bringing the case up for retrial by itself or directing the people's court at a lower level to conduct a retrial; and may notify the ruling about termination of enforcement to the people's court in charge of enforcement in oral way if the circumstance is urgent; however, a written ruling shall be sent out within ten days after the oral notice.

201. For a case which is brought up for retrial by a court itself or directed to a people's court at a lower level for retrial according to the procedure of trial supervision, the people's court that retries the case or brings the case up for retrial by itself will decide whether or not cancel, change or maintain the original judgment or ruling in the new judgment or ruling; if a mediation agreement is reached, the original judgment or ruling shall be regarded as cancelled after the mediation paper is served.

202. For a case decided or ordered by a people's court of second instance, if the people's court at a higher level needs to direct the case for retrial, it shall direct the people's court of second instance for retrial.

203. The statutory agent of a person of no or limited capacity for civil conduct may file an application for retrial on behalf of the party concerned.

204. If the party concerned applies for retrial of a legally effective mediation paper, Article 182 of the Civil Procedure Law shall be applied and the application shall be filed within two years after the effectiveness of the mediation paper.

205. The party concerned may apply for retrial either to the people's court of original instance or to the people's court at a higher level. If the party concerned applies for retrial to the people's court at a higher level, the people's court at a higher level holds upon review that the application complies with the conditions prescribed in Article 179 of the Civil Procedure Law, it may either direct the people's court at a lower level for retrial or may bring up the case for retrial by itself.

206. After the people's court has received an application for retrial filed by the party concerned, it shall conduct review. If it holds that the application complies with Article 179 of the Civil Procedure Law, it shall rule to terminate the enforcement of the original judgment after putting the case on file, and timely notify both parties; and if it holds that the application does not comply with Article 179 of the Civil Procedure Law, it shall reject the application by a written notice.

207. For a case heard according to the procedure for hastening debt recovery, the procedure of public summons for exhortation or the procedure of bankruptcy liquidation of enterprise legal person, or a case whose original judgment is sustained after the procedure of trial supervision, the parties concerned shall not file an application for retrial any more.

208. For the ruling of rejection or dismissal of a complaint, the parties concerned may apply for retrial.

209. Where the party concerned applies for retrial regarding the division of properties in a case of divorce, if the application is filed for the properties that have been divided in the judgment, the people's court shall examine the application according to Article 179 of the Civil Procedure Law; and shall put the case on file for trial if the conditions for retrial are complied with; or shall notify the party concerned to file a new lawsuit if the application is filed for the community properties that have not been dealt with in the judgment.

210. If the people's court brings a case up for retrial by itself or retries a case according to the procedure of second instance, and finds in the trial that the adjudication in the original first or second instance violates statutory procedures, it may deal with the case respectively in light of the specific circumstances:

1. If the people's court holds that the conditions for acceptance as prescribed in the Civil Procedure Law are not complied with, it shall rule to cancel the judgment of first or second instance, and reject the complaint; or

2. For a violation of statutory procedures prescribed in Article 181 of these Opinions, if which may affect the correct decision or ruling of the case, the people's court shall rule to cancel the judgment of first or second instance, and remand the case to the people's court of original instance for new trial.

211. For a case retried according to the procedure of trial supervision, if the people's court finds that the judgment of original first or second instance omits any parties concerned that shall participate in the adjudication, it may conduct mediation on the principle of free will of the parties concerned; and if the parties concerned can not reach unanimity through mediation, the people's court shall rule to cancel the judgment of first or second instance, and remand the case to the people's court of original instance for new trial.

212. The "two years" prescribed in Article 182 of the Civil Procedure Law is a fixed term, and shall be calculated from the next day after the judgment or ruling comes into force.

213. For a retrial case that will be heard according to the procedure of first or second instance, the time limit for concluding trial prescribed in Article 135 or 159 shall be correspondingly applied. The time limit for concluding trial shall be calculated from the next day after the decision of retrial is made.

214. The provisions in Article 192 of these Opinions shall apply to the procedure of trial supervision.

XIV  Procedure for Hastening Debt Recovery
 
215. If a creditor applies to the people's court for a pay warrant and the application complies with the following conditions, the people's court shall accept the application and notify the creditor within five days after receipt of the application:

1. Request for payment or delivery of money, money order, cashier's check, check, stocks, bonds, treasury bonds, transferable certificates of deposit, and other securities;

2. The money or securities to be paid or delivered upon request have expired and the amount thereof is certain, and the facts and evidence on which the request is based have been clarified;

3. The creditor has no obligation for reciprocal payment against delivery; and

4. The pay warrant can be served on the debtor.
 
If the application does not comply with any of the aforesaid conditions, the people's court shall notify the applicant of the rejection.
 
216. After the people's court has accepted an application, one judge thereof will examine the application. If the application is not established upon examination, it shall be rejected by a ruling within 15 days, and no appeal may be filed for the said ruling.
 
217. If an applicant cancels his application before the people's court sends out a pay warrant, the procedure for hastening debt recovery shall be ruled as completed.
 
218. If the debtor does not stay within the territory of China or his whereabouts are unknown even though he stays within the territory of China, the procedure for hastening debt recovery shall not be applied.
 
 219. A pay warrant shall contain:

1. Names or titles and other basic information of both the creditor and the debtor;

2. Type and quantity of money or securities the debtor shall pay or deliver;

3. Term for settlement of debts or presentation of objections; and

4. Legal consequence if the debtor does not present an objection within the statutory term.
 
A pay warrant shall bear the signatures of the judge and the court clerk, as well as the seal of the people's court.
 
220. For the service of a pay warrant on the debtor himself, if the debtor refuses to accept the order, the people's court may leave the rejected order at the abode of the debtor.
 
221. If the debtor presents a written objection within the statutory term according to Article 192 of the Civil Procedure Law, the people's court needs not to review whether the objection is reasonable and shall directly order the conclusion of the procedure for hastening debt recovery. If the debtor does not present the objection regarding the debts themselves but only states his inability to make payment, the validity of the pay warrant will not be affected.
 
The oral objection presented by the debtor will be invalid.
 
 222. A ruling for rejection of the application for a pay warrant according to Article 191 of the Civil Procedure Law and the ruling for conclusion of the procedure for hastening debt recovery according to Article 192 of the Civil Procedure Law shall bear the signatures of the judge and the court clerk, as well as the seal of the people's court.
 
 223. If the debtor does not present any written objection within the statutory term after receipt of a pay warrant but files a lawsuit with the people's court, the validity of the pay warrant will not be affected.
 
 224. If the creditor files a lawsuit after conclusion of the procedure for hastening debt recovery, the competent people's court shall accept the case.
 
 225. The term for a creditor to apply to the people's court for the enforcement of a pay warrant shall be governed by the provisions in Article 219 of the Civil Procedure Law.
 
 XV. Procedure of Public Summons for Exhortation

226. The "holder of a bill" prescribed in Article 193 of the Civil Procedure Law refers to the final holder of the bill before the bill is stolen, lost or destroyed.

227. After receipt of an application for public summons, the people's court shall review the application promptly, and decide whether or not to accept the application. If the application is reviewed as consistent with the conditions for acceptance, the people's court shall notify the applicant of the acceptance, and simultaneously notify the payer to stop the payment; and if the application is reviewed as inconsistent with the conditions for acceptance, the people's court shall rule to reject the application within seven days.

228. An announcement on acceptance of the application as sent out by the people's court according to Article 194 of the Civil Procedure Law shall contain:

1. Name or title of the application for pubic summons;

2. Type, par value, issuer, holder and endorser of the bill;3. Term for declaration of rights; and

4. Legal consequences for the transfer of the rights to the bill and the failure of an interested person to make declaration during the term of public summons.

229. An announcement shall be posted on the people's court's bulletin board, and be published on the relevant newspaper or other media. If there is a stock exchange at the locality of the people's court, the announcement shall be posted also in the said stock exchange. 

230. If an interested party declares rights to the people's court during the term of public summons, the people's court shall rule to conclude the procedure of public summons for exhortation. If an interested party declares rights after expiration of the term of declaration but before rendering of the judgment, the people's court shall also rule to conclude the procedure of public summons for exhortation.

231. If an interested person declares his rights, the people's court shall notify him to present the bill to itself, and notify the applicant for public summons to check the bill within the designated term. If the bill for which the applicant applies for public summons is inconsistent with the one presented by the interested person, the people's court shall rule to reject the declaration of the interested person.

232. Where there is no declarer within the term for declaration of rights or the declaration is rejected, the applicant for public summons shall apply to the people's court for rendering a judgment within one month from the next day after expiration of the term for declaration of rights; otherwise, the procedure of public summons for exhortation shall be finalized.

233. After the judgment comes into effect, the applicant for public summons shall be entitled to claim payment from the payer based on the judgment.

234. A case heard according to the procedure of public summons for exhortation can be adjudicated by a sole judge. The case in which the bill is declared as invalid shall be heard by a collegial bench.

235. If an applicant for public summons cancels his application, he shall apply for the cancellation before public summons. If the applicant applies for cancellation during the term of public summons, the people's court can directly rule to finalize the procedure of public summons for exhortation.


236. If the people's court notifies a payer to stop the payment according to Article 194 of the Civil Procedure Law, it shall comply with the provisions on property preservation. If the payer refuses to stop the payment after receipt of the notice on suspension of the payment, it shall also assume the payment obligation after adjudication, in addition to the compulsory measures adopted according to Articles 102 and 103 of the Civil Procedure Law.

237. If, after the people's court finalizes the procedure of public summons for exhortation according to Article 196 of the Civil Procedure Law, an applicant for public summons or the declarer files a lawsuit with the people's court, the jurisdiction shall be determined according to Article 27 of the Civil Procedure Law.

238. The ruling on finalization of the procedure of public summons for exhortation prescribed in Article 196 of the Civil Procedure Law shall bear the signatures of the judge and the court clerk as well as the seal of the people's court.

239. If an interested person files a lawsuit with the people's court according to Article 198 of the Civil Procedure Law, the people's court may hear the case as a dispute over a bill according to the general procedure.

XVI. Procedure of Bankruptcy Liquidation of an Enterprise Legal Person

240. Collective enterprises, jointly operated enterprises, private enterprises with the status of legal persons, as well as the Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures and wholly foreign-funded enterprises, etc. within the territory of China shall be governed by the procedure of bankruptcy liquidation of an enterprise legal person.

If all the parties to a jointly operated enterprise are wholly state-owned enterprises, the bankruptcy of the said jointly operated enterprise shall not be governed by the procedure of bankruptcy liquidation of an enterprise legal person.

241. Creditors shall have the priority of compensation to the object under mortgage or other secured object. If the mortgagee or any other holder of mortgage rights claims for the priority of compensation after the case of bankruptcy liquidation has been accepted but before the bankruptcy is announced, it shall be subject to approval by the people's court.

If the money converted from the object under mortgage or other secured object is insufficient for the amount of secured debts, the balance shall be taken as the credits of bankrupt.

242. After the people's court has accepted a bankruptcy case, it shall form a collegial bench for hearing the case.

243. The bankruptcy notice as sent out according to Article 200 of the Civil Procedure Law shall be published on the newspapers and contain:

1. Time for putting the case on file;

2. Debtor of the bankruptcy case;

3. Time limit and place for declaration of creditor's rights, as well as the legal consequences for the failure to make declaration within the time limit; and

4. Date and place for holding of the first assembly of creditors.

244. After the people's court has accepted a bankruptcy application, other civil procedures for enforcement and the procedure of property preservation against the debtor shall be terminated.

245. After the people's court has accepted a bankruptcy case, it shall timely notify the depository bank of the debtor to stop the settlement businesses of the debtor. The payment of expenses by the depository bank to the debtor for maintenance of its normal production and business operation shall be subject to approval by the people's court.

246. If the people's court organizes and forms a bankruptcy liquidation group according to Article 201 of the Civil Procedure Law, the scheme for disposal and distribution of insolvent properties shall be brought forward by the bankruptcy liquidation group, be discussed and adopted at the assembly of creditors, and be enforced after being reported to the people's court for ruling. 

247. The scheme for disposal and distribution of insolvent properties as discussed and adopted at the assembly of creditors shall be adopted by the majority of creditors attending the assembly and having the voting right, and the amount of creditor's rights they represent must account for 50% or more of the total creditor's rights not secured by properties; and the draft of the reconciliation agreement shall be discussed and adopted by 2/3 or more of the total creditor's rights not secured by properties.

248. The "reconciliation agreement" prescribed in Article 200 of the Civil Procedure Law shall contain:

1. Sources of properties for settlement of debts;

2. Methods for settlement of debts; and

3. Time limit for settlement of debts.

249. The liquidation group shall be responsible for and give reports to the people's court during the course of keeping, liquidating, evaluating, disposing of and distributing insolvent properties, and be subject to the supervision of the people's court and the assembly of creditors.

250. After the distribution of insolvent properties has been completed, the bankruptcy liquidation group shall request the people's court to order the conclusion of the bankruptcy procedure. After the bankruptcy procedure is finalized, the unliquidated creditor's rights will not be settled any more.

251. After conclusion of the bankruptcy procedure, the bankruptcy liquidation group will go through the formalities for deregistration of the bankrupt enterprise at the original registration organ.

252. Rulings shall be exclusively used for the cases of bankruptcy liquidation. One party can not file an appeal for any other rulings except for the ruling for rejection of an application for bankruptcy.

253. When the people's court hears a case of bankruptcy liquidation, in addition to the provisions in Chapter XIX of the Civil Procedure Law, the relevant provisions in the Enterprise Bankruptcy Law of the People's Republic of China (for Trial Implementation) may be applies by analogy.

XVII. Procedure of Enforcement

254. The object of compulsory enforcement shall be a property or act. If the party concerned refuses to enforce a legally effective judgment, ruling, mediation paper, or pay warrant, the people's court shall send out a notice of enforcement to the party concerned. If the person against whom a judgment or ruling, etc. is being executed (hereinafter referred to as the "person subject to enforcement") still fails to enforce the judgment or ruling, etc. within the time limit designated in the notice of enforcement, the compulsory enforcement shall be carried out.

255. A legally effective pay warrant shall be enforced by the people's court that made it.

256. "Other legal documents enforced by people's courts" as prescribed in Article 207 (2) of the Civil Procedure Law includes arbitration awards and notarized certifications of creditor's rights.

Other legal documents shall be enforced by the people's court at the place where the person subject to enforcement is domiciled or where his property is located. If both parties separately apply for enforcement to people's courts, the people's court that firstly accepted the application shall be responsible for enforcement.

257. The "suspension of enforcement" as prescribed in Article 208 of the Civil Procedure Law shall be limited to the scope of properties to which an objection is brought forward by a party not involved in the case according to this Article. The suspension of enforcement shall not be applicable to other properties of the person subject to enforcement. If the grounds for the objection are not established, the people's court shall give a notice to dismiss the objection.

258. If enforcers find any definite errors when enforcing a judgment, ruling or mediation paper made by their own court, they shall put forward written opinions and report them to the president of the court for review and disposal. If enforcers find any definite errors when enforcing a judgment, ruling or mediation paper made by the people's court at a higher level, they can put forward written opinions and ask by a letter the people's court at the higher level for review and disposal upon approval of the president of their own court.

259. If a person or property subject to enforcement is in another locality, the people's court responsible for enforcement can either entrust the people's court in that locality for the enforcement or directly go to that locality for the enforcement by itself. In the case of the latter, the people's court responsible for enforcement can request the local people's court for assistance in enforcement. The local people's court shall offer assistance as required.

260. For the enforcement by mandate, the entrusted people's court shall issue a power of attorney and the effective legal document (duplicate). The power of attorney shall contain a definite request for the enforcement.

261. After receipt of the power of attorney, the entrusted people's court has no power to conduct substantive review of the effective legal document to be enforced by mandate. If the entrusted people's court finds in the enforcement any errors herein, it shall feed the errors back to the entrusting people's court in a timely manner.

262. The entrusted people's court shall enforce a judgment or ruling rigidly according to the effective legal document and the requirements of the entrusting people's court. If the date, time limit and method for the debtor to pay off debts needs to be changed, the entrusted people's court shall obtain approval from the applicant for enforcement, and notify the entrusting people's court of the change in a timely manner.

263. Under any circumstances for suspension or termination of enforcement, the entrusted people's court shall timely inform the entrusting people's court by a letter, and the entrusting people's court will render its ruling. During this period of time, the enforcement can be suspended. The entrusted people's court shall not order the suspension or termination of enforcement on its own.

264. In the enforcement by mandate, if a person not involved in the case brings forward an objection to the object of enforcement, the entrusted people's court shall inform the entrusting people's court of it by a letter, and the entrusting people's court will give a notice on dismissal of the objection or render a ruling on suspension of enforcement. During this period of time, the enforcement shall be suspended.

265. If the people's court at a higher level of the entrusted people's court has received the request for directing the entrusted people's court for enforcement according to Article 210 (2) of the Civil Procedure Law, it shall direct the entrusted people's court for enforcement in written form within five days, and inform the entrusting people's court of it in a timely manner.

After the entrusted people's court has received the written direction sent out by the people's court at a higher level, it shall enforce the relevant legal document promptly, and report the conditions of enforcement to the people's court at the higher level, and inform the entrusting people's court of it.

266. Where one party fails to enforce or completely enforce the mediation agreement reached out of free will of both parties in the enforcement, if the other party applies for enforcing the original effective legal document, the people's court shall resume the enforcement of the original effective legal document; however, the part of mediation agreement which has been enforced shall be excluded. If the mediation agreement has been completely enforced, the people's court will not resume the enforcement of the original effective legal document.

267. The time limit for an application for resuming the enforcement of an original legal document shall be governed by the provisions on the time limit for application for enforcement as prescribed in Article 219 of the Civil Procedure Law. If the time limit for application for the enforcement is suspended due to the mediation agreement reached during the course of enforcement, it shall be continuously calculated from the last day of the time limit for enforcement as determined in the mediation agreement. 

268. Where the people's court decides to suspend the enforcement according to Article 212 of the Civil Procedure Law, if the security is provided with a deadline, the deadline of the suspension of enforcement shall be consistent with the deadline of security with the maximum of one year. If the person subject to enforcement or the security provider transfers, hides, sells off or destroys, etc. the property for security, the people's court may resume the compulsory enforcement.

269. For the "security for enforcement" as prescribed in Article 212 of the Civil Procedure Law, the person subject to enforcement can provide a property to the people's court for security or a third person can provide security, either. For the security by a property, a letter of guarantee shall be submitted; for the security by a third person, a letter of security shall be submitted. The security provider shall have the ability to enforce the legal document or to assume the liability of compensation on behalf.

270. If the person subject to enforcement still fails to fulfill his obligations after expiration of the term for suspension of enforcement as decided by the people's court, the people's court can directly enforce the property for security or rule to enforce the property of the security provider; however, the enforcement of the property of the security provider shall be limited to the part for the obligation of enforcement.

271. If the legal person or other organization as the person subject to enforcement is split off or amalgamated during the course of enforcement according to Article 213 of the Civil Procedure Law, its rights and obligations shall be undertaken by the surviving legal person or other organization after alteration; If it is deregistered, and there is any inheritor of rights and obligations according to the relevant substantive law, the people's court may order the said inheritor of rights and obligations as the person subject to enforcement.

272. If any other organization can not fulfill an obligation determined in the legal document during the course of enforcement, the people's court may rule to enforce the property of any legal persons or citizens which assume the obligation for the said other organization.

273. During the course of enforcement, if the legal person or other organization as the person subject to enforcement changes its name, the people's court may order the changed legal person or other organization as the person subject to enforcement.

274. If the person subject to enforcement is dead and his inheritor has not given up inheritance, the people' s court can rule to change the person subject to enforcement, and the said inheritor shall pay off debts within the scope of legacy. If the inheritor has given up the right of inheritance, the people's court can directly enforce the legacy of the person subject to enforcement.

275. If, after any other legal document has been completely enforced by the people's court according to legal provisions, the said legal document is cancelled by the competent authority, upon application of one party, Article 214 of the Civil Procedure Law may be applied.

276. During the course of enforcement, if the person subject to enforcement which has the status of an enterprise legal person can not pay off due debts, upon application of the creditor or debtor, the people's court may announce the bankruptcy of the person subject to enforcement.

277. If the matters being arbitrated are partly within the scope of the arbitration agreement and partly outside the scope of the arbitration agreement, the people's court shall order not to enforce the matters that are outside the scope of the arbitration agreement.

278. Where the people's court rules not to enforce an arbitration award according to Article 217 (2) and (3) of the Civil Procedure Law, the parties concerned may either reach a new written arbitration agreement and then apply for arbitration, or may file a lawsuit with the people's court.

279. The "notice of enforcement" as prescribed in Article 220 of the Civil Procedure Law shall be sent out within ten days after receipt of a written application for enforcement. In addition to the order to the person subject to enforcement for fulfilling the obligation determined in the legal document, the notice of enforcement shall also inform him to pay the interest or surcharge for delay of performance according to Article 232 of the Civil Procedure Law.

280. The people's court can directly inquire about, freeze or deduct the deposits of the person subject to enforcement at a bank, bank outlet, savings house, credit cooperative union or any other entity with the saving business. The court in another place can directly inquire about, freeze or deduct the deposits of the person subject to enforcement at a bank, bank outlet, savings house, credit cooperative union or any other entity with the saving business at the domicile of the person or property subject to enforcement, and needs not to handle formalities at the local people's court.

281. If the people's court needs to sell off any properties of the person subject to enforcement during the course of enforcement, it can either deliver the property to a relevant entity for sell-off or directly sell off the property by itself. If the property is directly sold off by the people's court, the people's court shall solicit opinions from the price authority, etc. regarding the price, and be fair and reasonable in fixing the price.

For the property to be sold off by a people's court, the people's court or any of its personnel shall not buy it.

282. When a people's court seizes or freezes any properties of the person subject to enforcement during the course of enforcement according to Articles 221 and 223 of the Civil Procedure Law, no entity, including any other people's court, can repeatedly seize, freeze or illegally defreeze the said property; otherwise, the violator will be punished according to Article 102 of the Civil Procedure Law. If the properties of the person subject to enforcement can not satisfy all the liquidation requirements put forward by the applicants for enforcement, the properties can be disposed of by referring to Article 204 of the Civil Procedure Law at the time of enforcement.

283. If the party concerned fails to commit an obligatory act determined in the legal document, and the said act can be committed only by the person subject to enforcement according to Article 231 of the Civil Procedure Law, the people's court can deal with it according to Article 102 (1) (f) of the Civil Procedure Law.

284. If the object of enforcement is specific, the original object shall be enforced. If the original object does not exist any more, the compensation can be made by converting the original object into money.

285. During the course of enforcement, if the person subject to enforcement hides the property, the people's court can, except for the punishment prescribed in Article 102 of the Civil Procedure Law, order that person to surrender the property he has hidden or make compensation by converting the original property into money. If that person refuses to do so, the people's court can forcibly enforce other properties of that person based on the value of the property subject to enforcement, or can recover the hidden property by means of search.

286. When a people's court searches the person subject to enforcement, his domicile or the place where the property is hidden according to Article 227 of the Civil Procedure Law, the following requirements shall be met:

1. The time limit for performance as determined in the effective legal document has expired;

2. The person subject to enforcement fails to fulfill the obligation determined in the legal document; and

3. The people's court considers that there is the act of hiding the property.

The search personnel shall wear clothes as required, and show a search warrant and their identity certifications.

287. When a people's court makes search, no irrelevant person may enter the search site. If the object of search is a citizen, the person subject to enforcement or his adult family members as well as the person assigned by a grassroots organization shall be present; if the object of search is a legal person or any other organization, the legal representative or the main principal shall be notified to be present; if there is a superior department, the relevant person in the superior department shall be notified to be present. If any of the said persons refuse to be present, the search will not be affected.

The body of a woman shall be searched by female enforcers.

288. If any properties that shall be seized under law are discovered during the course of search, they shall be disposed of according to Articles 224 (2) and 226 of the Civil Procedure Law.

289. Transcripts of search shall be made for the search, bear the signatures or seals of the search personnel, the person being searched and other persons on the scene. If any of the aforesaid persons refuse to affix his name or seal, the circumstance shall be indicated in the transcripts of search.

290. If a legal person or any other organization holds a property or negotiable document to be delivered according to the legal document, and it refuses to surrender the property or negotiable document after the people's court has sent out a notice of assistance in enforcement, the people's court can forcibly enforce the property or negotiable document, and dispose of it according to Article 103 of the Civil Procedure Law.

291. If any relevant entity or individual holds a property or negotiable document to be delivered according to the legal document, and the said property or negotiable document is destroyed or lost out of fault, the people's court may order the holder to make compensation; if the said entity or individual refuses to make compensation, the people's court may resort to compulsory enforcement based on the value of the said property or negotiable document.

292. Where a people's court needs to handle the formalities for transfer of a certificate of title to house property, land certificate, certificate for the ownership of mountain forest, certificate of patent, certificate of trademark, vehicle license or any other certificate of property right during the course of enforcement, the formalities can be handled according to Article 230 of the Civil Procedure Law.

293. If the person subject to enforcement delays in performance, the interest or discharge for delay of performance shall be calculated as of the next day after expiration of the time limit for performance as designated by the judgment, ruling or any other legal document.

294. The "interest for debt double paid for the delay of performance" as prescribed in Article 232 of the Civil Procedure Law refers to two times of interest of debt calculated according to the maximum interest rate for the bank loans of the same term.

295. If the person subject to enforcement fails to fulfill the non-pecuniary obligation of payment within the time limit designated by the judgment, ruling or any other legal document, whether losses have caused to the applicant for enforcement, the interest for delay of performance shall be paid. If losses have caused to the applicant for enforcement, the compensation shall be made in double of the said losses; and if there is no loss, the surcharge for delay of performance can be decided by the people's court based on the specific case circumstances. 

296. If the creditor requests the people's court for continuous enforcement according to Article 233 of the Civil Procedure Law, the time limit prescribed in Article 219 of the Civil Procedure Law shall not be applied.

297. Where the person subject to enforcement is a citizen or any other organization, if other creditors which have obtained the enforcement grounds or have filed a lawsuit find after start of the enforcement procedure that the properties of the person subject to enforcement can not pay off all the debts, they can apply to the people's court for participation in the distribution of properties.

298. To apply for participating in the distribution of properties, an applicant shall submit a written application, which shall indicate the facts and grounds for participation in the distribution of properties and the failure of the person subject to enforcement to pay off all the debts, and attach the grounds for enforcement.

An application for participation in the distribution shall be filed after start of the enforcement procedure but before the liquidation of properties owned by the person subject to enforcement.

299. Where the person subject to enforcement is a citizen or any other organization, if any other creditors which have obtained the grounds for enforcement apply for participation into distribution of properties, the properties of the person subject to enforcement shall be liquidated by referring to the order prescribed in Article 204 of the Civil Procedure Law. If the said properties are insufficient for liquidating the debts in the same sequence, they shall be distributed based on a proportion. The person subject to enforcement shall continue to pay off the remaining debts after liquidation. If any creditors find any other properties owned by the person subject to enforcement, they can request the people's court for enforcement at any time.

300. If the person subject to enforcement can not pay off debts, but enjoys mature creditor's rights to any third person, the people's court may, upon application, notify the third person to pay off debts to the applicant for enforcement. If the third person has no objection to the debts but fails to pay off debts within the time limit designated in the notice, the people's court may resort to compulsory enforcement.

301. Upon consent of the applicant for enforcement and the person subject to enforcement, the properties of the latter can be directly converted into money and be delivered to the applicant for payment of debts without auction or sell-off. The person subject to enforcement shall continue to pay off the remaining debts. 

302. If a property of the person subject to enforcement can not be auctioned or sold off, upon consent of the applicant for enforcement, the people's court may convert the property into money and deliver the property to the applicant for payment of debts or deliver the property to the applicant for administration. If the applicant for enforcement refuses to take or administer the property, the property shall be returned to the person subject to enforcement.

303. If, after the people's court has completed the enforcement, the person subject to enforcement or any other person impairs the object of enforcement, the people's court shall take measures to eliminate the impairment, and can handle the impairment according to Article 102 of the Civil Procedure Law. If the impairment causes any losses to the applicant for enforcement or any other persons, the victim may file a lawsuit separately.

XVIII. Special Provisions on the Civil Procedure Involving Foreign Elements

304. Civil cases in which one party or both parties are foreigners, stateless persons, foreign enterprises or organizations or the legal facts for establishment, alteration or termination of a civil legal relationship between the parties concerned take place at abroad, or the subject matter of an action is located at abroad shall be the civil cases involving foreign elements.

305. For the cases under the exclusive jurisdiction of the people's courts according to Articles 34 and 246 of the Civil Procedure Law, the parties concerned shall not select a foreign court for jurisdiction by a written agreement; unless they stipulate to settle the dispute through arbitration.

306. For the cases over which both the people's court of the People's Republic of China and the foreign court have the jurisdiction, if one party files a lawsuit with the foreign court but the other party files a lawsuit with the people's court of the People's Republic of China, the people's court may accept the case. If, after judgment was rendered, the foreign court or one party requests the people's court to recognize and enforce the judgment or ruling rendered by the foreign court concerning this case, the people's court shall not consent to the request, unless it is otherwise prescribed by an international treaty concluded or acceded to by both countries.

307. If the defendant who resides outside the territory of our country fails to respond to the lawsuit at expiration of the term of public notice in the case of service of a complaint or subpoena by a public notice, after the people's court renders a default judgment, it shall serve the judgment by a public notice according to Article 274 (g) of the Civil Procedure Law. As of the next day at expiration of six months after the judgment is served by a public notice, if no party concerned has filed an appeal within the 30 days of the time limit for appeal, the judgment of first instance shall promptly come into force.

308. The foreign party in the civil procedure involving foreign elements may entrust persons or lawyers, as a non-lawyer, with the same nationality as him to be his litigation representatives. Any officials in the embassy or consulate of a foreign country in China may, upon entrustment of the citizens of his own country, act as a litigation representative under his own name; however, he will not enjoy diplomatic privileges or immunities in the litigation.

309. In the civil procedure involving foreign elements, an embassy or consulate may entrust its officials to hire, under the name of a diplomatic representative, Chinese lawyers or Chinese citizens to be the civil litigation representatives for a citizen of that foreign country when the citizen of that foreign country is involved in a case and not within the territory of China.

310. In the civil procedure involving foreign elements, if both parties reach an agreement upon mediation, the people's court shall work out a mediation paper. If the parties concerned request to render a judgment, the people's court may work out the judgment according to the contents of the agreement and serve it on the parties concerned.

311. If both parties respectively reside within and outside the territory of China, with respect to the judgment or ruling rendered by the people's court of the first instance, the time limit for appeal shall be the term prescribed in Article 147 of the Civil Procedure Law for the party residing within the territory of China, and shall be 30 days for the party residing outside the territory of China. If neither party files an appeal at expiration of the time limit for appeal, the judgment or ruling rendered by the court of the first instance shall promptly become legally effective.

312. Articles 145-148, 277 and 278 of these Opinions shall apply to the civil procedures involving foreign elements.

313. For an arbitration award rendered by a foreign affairs arbitration agency of China, if one party fails to perform the award and the other party applies to the people's court for enforcement of the award, the application shall be handled according to the relevant provisions in Chapter 28 of the Civil Procedure Law.

314. To apply to the people's court for enforcement of an award rendered by a foreign affairs arbitration agency of China, the applicant shall file a written application and submit the original award as an attachment. If the applicant is the foreign party, the written application shall be filed in Chinese.

315. When a people's court enforces the arbitration award rendered by a foreign affairs arbitration agency, if the party against whom the award is being enforced makes defense that there is any circumstances prescribed in Article 260 (1) of the Civil Procedure Law, the enforcement may be suspended after that party provides property security. The people's court shall review the defense made by the party against whom the award is being enforced, and rule not to enforce the award or reject the defense according to the review results.

316. The rescission or termination of a foreign-related economic contract will not affect the effectiveness of the arbitration clause in it. If one party files a lawsuit with a people's court for the reason that the foreign-related economic contract containing an arbitration clause is rescinded or terminated, the people's court will not accept the lawsuit.

317. If a foreign affairs arbitration agency of China submits a property preservation application filed by the party concerned to a people's court for decision according to Article 258 of the Civil Procedure Law, the people's court may conduct review to decide whether or not to take the preservation measure. If the people's court rules to adopt the preservation measure, it shall order the applicant to offer security; and if the applicant does not offer security, the people's court shall reject the application.

318. Where one party applies to a competent intermediate people's court of the People's Republic of China for recognition and enforcement of a legally effective judgment or ruling rendered by a foreign court, if the home country of the foreign court has neither concluded or jointly acceded to an international treaty nor has the relationship of reciprocity with the People's Republic of China, the party concerned may file a lawsuit with the people's court and the competent people's court shall render a judgment for enforcement.

319. If a court of a country, which has neither concluded a judicial assistance convention nor has the relationship of reciprocity with China, directly requests a court of China for judicial assistance not resorting to diplomatic channel, the court of China shall reject the application and give explanations.

320. If the party concerned uses the judgment or ruling rendered by a people's court of China outside the territory of China and requests the people's court of China to prove the legal force of the judgment or ruling, or a foreign court requests the people's court of China to prove the legal force of the judgment or ruling, the people's court of China that rendered the judgment or ruling may issue a certification in its own name.