China’s Supreme Court and Hong Kong’s Department of Justice mentioned on Monday that they signed an settlement on the mutual recognition and enforcement of judgments in civil and industrial instances efficient instantly in each locations.
The association reduces the necessity for events to re-litigate the identical dispute within the mainland and Hong Kong courts, lowering the dangers, authorized prices, and time normally related to the cross-boundary enforcement of such judgments, Hong Kong’s Department of Justice mentioned in an announcement.
It is unclear how the reciprocal recognition and enforcement association would work in observe as there was no earlier precedent with the mainland.
Hong Kong is the one jurisdiction to have an association with the mainland on reciprocal recognition and enforcement of judgments with such a large protection, he mentioned.
The transfer comes as Hong Kong prepares to enact a brand new spherical of nationwide safety legal guidelines this 12 months often called Article 23 that’s anticipated to additional tighten China’s grip, and embody counter-espionage laws that might strengthen official management over overseas establishments.
When Hong Kong reverted from British to Chinese rule in 1997, Beijing promised town a excessive diploma of autonomy together with the correct to free speech and protest.
Western critics say Beijing has reneged on these guarantees amid the present nationwide safety legislation crackdown that has been used to arrest over 280 pro-democracy activists and politicians together with main China critic Jimmy Lai.
Lai’s trial has turn out to be a diplomatic focus and a key check for the monetary hub’s judicial independence and freedoms, with diplomats together with these from the US, Britain, the European Union, Canada, and Australia in attendance.
Justice Secretary Paul Lam mentioned that the brand new civil and industrial association showcased the distinctive benefits loved by Hong Kong below the “one nation, two techniques” method that town is ruled below.
It will make the choice of selecting Hong Kong with its widespread legislation system which the “worldwide enterprise neighborhood is conversant in and believe in, because the jurisdiction to resolve any contractual dispute extra enticing,” figuring out {that a} Hong Kong judgment could also be acknowledged and enforced everywhere in the mainland, Lam mentioned.
“This might be conducive to enhancing Hong Kong’s standing as a global authorized and dispute decision providers middle. It may make buyers and enterprise folks from different international locations extra able to discover funding and enterprise alternatives on the mainland.”