Hong Kong, Mainland China enhance law on mutual enforcement of arbitral awards
HONG KONG -- Since February l, 2000, enforcement of arbitral awards between the Mainland and Hong Kong has been governed by a separate Arrangement, which has successfully provided an effective mechanism of enforcing awards between these two jurisdictions. On November 27, 2020, a Supplemental Arrangement was signed, amending four aspects of the original Arrangement to bring it further into line with current practice in international arbitration. Some amendments became effective immediately, while others became effective only on May 19, 2021.
Importantly, according to a special report by lawyers Baker McKenzie, award creditors will now be able to seek enforcement of an award in both jurisdictions simultaneously,. as long as the total amount to be recovered does not exceed the amount determined in the award.
Simultaneous enforcement was prohibited under the original Arrangement, BM says.