The Supreme People's Court ("SPC") has recently issued the Interpretations on Several Issues Concerning the Application of the Limitation of Action Provided in the General Rules of the Civil Law of the People's Republic of China (the "Interpretations"), effective from July 23, 2018.
The Interpretations expressly state that, where the limitation of action commences after the entry into force of the General Rules of the Civil Law, provisions on the three-year limitation of action set out in Article 188 of the General Rules of the Civil Law shall apply. Where a litigant argues that provisions on the two-year or one-year limitation of action set out in the General Principles of the Civil Law shall apply, the people's court will not support its argument. In addition, the Interpretations state that, where the two-year or one-year limitation of action set out in the General Principles of the Civil Law has not expired yet when the General Rules of the Civil Law becomes effective and the litigant thus claims for the application of the three-year limitation of action, the people's court shall support its claim. Moreover, the Interpretations clarify that where the two-year or one-year limitation of action set out in the General Principles of the Civil Law has already expired before the General Rules of the Civil Law have become effective, the people's court will not support the claim of a litigant for application of the three-year limitation of action. Furthermore, the Interpretations provide clarity on some other issues, including the suspension of the limitation of action.