The enactment of this new law is intended to upgrade and systematise the existing Chinese conflict laws, in order to help parties to international civil and commercial transactions choose the proper governing laws, and to facilitate the adjudication of international civil and commercial disputes by Chinese courts or international arbitration tribunals.

On 28 October 2010, the Standing Committee of China’s National People’s Congress adopted the Law of the Application of Law for Foreign-Related Civil Relations of the People’s Republic of China (Law), which will come into effect on 1 April 2011.

As the first specific law enacted to govern the application of law in foreign-related civil relations in connection with civil subjects, marriage and family, inheritance, property rights, creditor’s rights and intellectual property rights, the Law summarises the general principles of the existing Chinese conflict laws and practices in a more systematic manner and clarifies certain areas by referencing the prevailing international practices. Lawyers advising on Sino-foreign transactions and litigation should be aware of the following developments in the Law....