The butterfly effect of civil procedure law revision on cross‐border bankruptcies in China
International Insolvency Review
Published online on March 19, 2026
Abstract
["International Insolvency Review, EarlyView. ", "\nAbstract\nChina enacted an amendment to its Civil Procedure Law in 2023, which contains several new provisions regarding the jurisdiction and the judgement enforcement of foreign‐related cases. Given that there is only one provision on cross‐border bankruptcies within the Chinese Enterprise Bankruptcy Law, the new provisions within the amendment to the Civil Procedure Law can play a complementary role in several aspects such as jurisdiction and recognition of cross‐border bankruptcy. Firstly, the liquidation of a corporation registered in China is subject to compulsory jurisdiction in the country, as established under the exclusive jurisdiction rule. Secondly, proper connection and forum non conveniens rules could potentially expand the Chinese courts' jurisdiction over bankruptcy‐derived suits. Lastly, the revision of the rules pertaining to refusal of recognition and enforcement of foreign judgements offers increased opportunities for the recognition of cross‐border bankruptcy proceedings and judgements in China.\n"]