Hong Kong and Mainland China Enhance Law on Mutual Enforcement of Arbitral Awards

Since 1 February 2000, enforcement of arbitral awards between the Mainland and Hong Kong has been governed by a separate Arrangement, which has successfully provided an effective mechanism of enforcing awards between these two jurisdictions.

On 27 November 2020, a Supplemental Arrangement was signed, amending four aspects of the original Arrangement to bring it further in line with current practice in international arbitration. Some amendments became effective immediately, while others will become effective on 19 May 2021. Importantly, award creditors will be able to seek enforcement of an award in both jurisdictions simultaneously as long as the total amount to be recovered does not exceed the amount determined in the award. Simultaneous enforcement was prohibited under the original Arrangement.

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