The Supreme People’s Court of the People’s Republic of China has recently circulated a notification on the enforcement of arbitral awards rendered in Hong Kong to all courts in Mainland China.

Dated 30 December 2009, the notification clarifies that ad hoc and institutional arbitral awards rendered in the Hong Kong Special Administrative Region are enforceable in Mainland China subject to Article 7 of the Arrangement concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region, which became effective from 1 February 2000. Article 7, which mirrors Article V of the New York Convention, lists limited grounds on which enforcement and recognition of awards may be refused.

The awards to which the notification applies specifically include those rendered under the auspices of the International Court of Arbitration of the International Chamber of Commerce. Any doubt over the enforceability of such awards in Mainland China should now be removed.

The notification is a welcome step forward. It is likely to boost Hong Kong’s development as a seat for international dispute resolution. ICC already has a growing caseload in the region, administered from the Asia branch of the ICC Court Secretariat based in Hong Kong. Industry experts have predicted that the clarification brought by the notification of the Supreme People’s Court will reinforce ICC’s position and give it added appeal for administering cases relating to China.

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