On October 28, 2010, the Standing Committee of the National People’s Congress promulgated the “Law of the People’s Republic of China on the Application of Law for Foreign-related Civil Relationships” (the “Law”). It will become effective on April 1, 2011. Until now, China’s civil code had buried its choice-of-law provisions within the substantive laws, causing uncertainty and confusion. The Law established a clearer standard of what the applicable law is in foreign-related civil relationships. The most significant provisions of the Law are summarized below.
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