On January 18, 2019, the Supreme People's Court ("SPC") and the Department of Justice ("DOJ") of the Hong Kong Special Administrative Region ("HKSAR") signed the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters between the Courts of the Mainland and of the Hong Kong Special Administrative Region (the "Arrangement").
Encompassing 31 articles, the Arrangement provides for the scope regarding the reciprocal recognition and enforcement of judgements in civil and commercial matters between the mainland and the HKSAR, contents of judgements, procedures and ways to apply for the reciprocal recognition and enforcement, examination of jurisdiction of courts handling the original trials, circumstances where the claimed reciprocal recognition and enforcement will be declined, and approaches to seek remedy. The Arrangement has broadened as much as possible the scope within which judgements in civil and commercial matters will be reciprocally recognized and enforced between the mainland and the HKSAR; as a result, judgements not involving monetary payments and those rendered for some intellectual property lawsuits also fall into the scope of said reciprocal recognition and enforcement, and this fully reflects the spirit of reducing repetitive lawsuits to the largest extent, enhancing benefits for both mainland and Hong Kong residents, promoting the mutual judicial trust between both sides and carrying out the "One Country, Two Systems" policy. When this Arrangement will take effect will be announced later by both sides, after the SPC has released relevant judicial interpretations and relevant formalities have been completed in the HKSAR.