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China Establishes Shanghai International Commercial Court

Thu, 20 Mar 2025
Categories: China Legal Trends

In December 2024, the Shanghai International Commercial Court was officially established under the Shanghai First Intermediate People’s Court.

The Court is an internal division of the Shanghai First Intermediate People’s Court and will have exclusive jurisdiction over first and second-instance foreign-related commercial cases, arbitration judicial review cases, and other cases that were previously under the jurisdiction of the Shanghai First and Second Intermediate People’s Courts.

At the press conference, the Shanghai First Intermediate People’s Court also released the Chinese and English versions of the “Regulations of the Shanghai International Commercial Court (For Trial Implementation)” and the “Model Clauses for Consensual Jurisdiction of the Shanghai International Commercial Court” (hereinafter the “Model Clauses”).

The Model Clauses consists of three parts: the Basic Jurisdiction Clause, the Optional Clauses, and the Notice of the Model Clauses. The Model Clauses will guide the parties to adopt comprehensive consensual jurisdiction clauses, thereby improving the jurisdictional framework for foreign-related commercial cases.

As the Notice of the Model Clauses points out, parties involved in foreign-related commercial disputes may, in accordance with Article 277 of the Civil Procedure Law of the People's Republic of China, agree to choose the jurisdiction of the Shanghai International Commercial Court. The choice of the governing law in the Model Clause refers to substantive law, and procedural law is not included. In addition, the service of process in foreign-related proceedings shall be conducted in accordance with the means stipulated in Article 283 of the Civil Procedure Law of the People’s Republic of China. The Shanghai International Commercial Court encourages parties to agree to choose service by electronic means to improve efficiency, unless it is prohibited by the law of the country where the recipient is located.

Below are its Basic Jurisdiction Clause and Optional Clauses.

I.Basic Jurisdiction Clause

Any dispute arising out of or in connection with this agreement shall be settled through negotiation between the parties in good faith. If the negotiation fails, the parties irrevocably agree that the Shanghai International Commercial Court of the People's Republic of China has exclusive jurisdiction to settle the dispute, and the proceedings shall be submitted to the Shanghai International Commercial Court and subject to the jurisdiction of the People's Republic of China.

II.Optional Clauses

1. Governing Law

The parties agree that this agreement and any related agreements are governed by and to be interpreted in accordance with 

A. the laws of the People's Republic of China;

B.________(Foreign Law);

C.________(International Convention or Treaty)

2. Service of Process

Each party confirms that the means and addresses for service of litigation documents should be:

Party A

Address for service by post:

Address for service by electronic means (E-mail, mobile phone number, etc.):

Party B

Address for service by post:

Address for service by electronic means (E-mail, mobile phone number, etc.):

 

 

 

Contributors: CJO Staff Contributors Team

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