The Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region has officially come into operation. This permits certain court rulings from mainland China to be enforced in Hong Kong, a mechanism enabled via local legislation implemented by the Hong Kong government. The process includes a series of procedural steps and allows for judgments to be refused enforcement under specified circumstances, outlined in the law. As a section of the Ordinance stipulates, certain categories of judgments, such as matrimonial and family law judgments, judgments for enforcement of arbitral awards, and corporate and personal insolvency judgments, are excluded.
Hong Kong’s Secretary for Justice, Paul Lam, SC, commented that the new arrangement exemplifies the unique benefits stemming from Hong Kong’s “one country, two systems” principle. He further remarked that implementing the arrangement is projected to bolster Hong Kong’s reputation as a hub for regional intellectual property trading and international legal and dispute resolution services. The arrangement, as highlighted by a local law firm, will likely reduce the need for re-litigation in Hong Kong thereby saving time, costs and resources.
The enforcement arrangement notably broadens the scope of civil and commercial judgments from mainland China that may now be recognized and enforced in Hong Kong, even allowing judgment creditors to pursue injunctions and orders for specific performance. This development provides expanded avenues for enforcing judgments.
The introduction of this arrangement coincides with current preparations by Hong Kong to implement new national security laws known as Article 23. A statement from Hong Kong’s Chief Executive, John Lee Ka-chiu, reaffirmed the necessity to comprehensively explain the article and cautioned against potential troublemakers.