China

Enforcing Contracts in

China

Listed below is a detailed summary of the efficiency of contract enforcement. It follows the evolution of a sale of goods dispute, tracking the time, cost and number of procedures involved from the moment the plaintiff files the lawsuit until actual payment.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Court Name (English): Shanghai District People's Court
  • City: Shanghai

About This Topic

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Indicator
Time (days) 406
Filing and service 21
Trial and judgment 195
Enforcement of judgment 190
Cost (% of claim) 11.1
Attorney cost (% of claim) 6
Court cost (% of claim) 3.9
Enforcement Cost (% of claim) 1.24
Procedures (number) 34
Filing and service
*      Plaintiff’s filing of summons and complaint: Plaintiff files his summons and complaint with the court, orally or in writing.
1      Registration of court case: The court administration registers the lawsuit or court case. This includes assigning a reference number to the lawsuit or court case.
*      Assignment of court case to a judge: The court case is assigned to a specific judge through a random procedure, automated system, ruling of an administrative judge, court officer, etc.
2      Court scrutiny of summons and complaint: A judge examines Plaintiff's summons and complaint for formal requirements.
*      Judge admits summons and complaint: After verifying the formal requirements, the judge decides to admit Plaintiff’s summons and complaint.
3      Delivery of summons and complaint to person authorized to perform service of process on Defendant: The judge or a court officer delivers the summons to a summoning office, officer, or authorized person (including Plaintiff), for service of process on Defendant.
*      Arrangements for physical delivery of summons and complaint: Plaintiff takes whatever steps are necessary to arrange for physical service of process on Defendant, such as instructing a court officer or a (private) bailiff.
*      Mailing of summons and complaint: Court or process server, including (private) bailiff, mails summons and complaint to Defendant.
*      Application for pre-judgment attachment: Plaintiff submits an application in writing for the attachment of Defendant's property prior to judgment. (see assumption 5)
*      Decision on pre-judgment attachment: The judge decides whether to grant Plaintiff’s request for pre-judgment attachment of Defendant’s property and notifies Plaintiff and Defendant of the decision. This step may include requesting that Plaintiff submit guarantees or bonds to secure Defendant
4      Guarantees securing attached property: Plaintiff typically submits guarantees or bonds to secure Defendant against possible damages to attached property. (see assumption 5)
5      Pre-judgment attachment.: Defendant's property is attached prior to judgment. Attachment is either physical or achieved by registering, marking, debiting or separating assets. (see assumption 5)
6      Custody of assets attached prior to judgment: Defendant's attached assets are put under enforcement officer's or (private) bailiff's care. (see assumption 5)
Trial and judgment
7      Defendant’s filing of defense or answer to Plaintiff’s claim: Defendant files a written pleading which includes his defense or answer on the merits of the case. Defendant's written answer may or may not include witness statements, expert statements, the documents Defendant relies on as evidence and the legal authori
8      Deadline for Plaintiff to answer Defendant's defense or answer: Judge sets the deadline by which Plaintiff will be allowed to answer Defendant's defense or answer.
9      Plaintiff’s written response to Defendant's defense or answer: Plaintiff responds to Defendant’s defense or answer with a written pleading. Plaintiff's answer may or may not include a witness statements or expert (witness) statements.
10      Adjournments: Court procedure is delayed because one or both parties request and obtain an adjournment to submit written pleadings.
11      Mediation hearing: The judge during this informal meeting with the parties encourages them to settle the case. The judge acts as mediator. If the case cannot be settled, the judge may draft a pre-trial conference report, after which the case may be allocated to another judg
*      Setting of date(s) for oral hearing or trial: The judge sets the date(s) for the oral hearing or trial.
*      List of (expert) witnesses: The parties file a list of (expert) witnesses with the court. (see assumption 6-a)
12      Summoning of (expert) witnesses: The court summons (expert) witnesses to appear in court for the oral hearing or trial. (see assumption 6-a)
13      Adjournments: Court proceedings are delayed because one or both parties request and obtain an adjournment to prepare for the oral hearing or trial.
14      Oral hearing (prevalent in civil law): The parties argue the merits of the case at an oral hearing before the judge. Witnesses and a court-appointed independent expert may be heard and questioned at the oral hearing.
15      Adjournments: Court proceedings are delayed because one or both parties request and obtain an adjournment during the oral hearing or trial, resulting in an additional or later trial or hearing date.
16      Closing of the evidence period: The court makes the formal decision to close the evidence period.
*      Final arguments: The parties present their final factual and legal arguments to the court either by oral presentation or by a written submission.
17      Notification of judgment in court: The parties are notified of the judgment at a court hearing.
18      Writing of judgment: The judge produces a written copy of the judgment.
19      Registration of judgment: The court office registers the judgment after receiving a written copy of the judgment.
20      Court notification of availability of the written judgment: The court notifies the parties that the written judgment is available at the courthouse.
21      Plaintiff's receipt of a copy of written judgment: Plaintiff receives a copy of the written judgment.
22      Appeal period: By law, Defendant has the opportunity to appeal the judgment during a period specified in the law. Defendant decides not to appeal. Judgment becomes final the day the appeal period ends.
23      Reimbursement by Defendant of Plaintiff's court fees: The judgment obliges Defendant to reimburse Plaintiff for the court fees Plaintiff has advanced, because Defendant has lost the case.
Enforcement of judgment
24      Plaintiff's approaching of court enforcement officer or (private) bailiff to enforce the judgment: To enforce the judgment, Plaintiff approaches a court enforcement officer such as a court bailiff or sheriff, or a private bailiff.
*      Plaintiff’s request for enforcement order: Plaintiff applies to the court to obtain the enforcement order ('seal' on judgment).
25      Plaintiff’s advancement of enforcement fees: Plaintiff pays the fees related to the enforcement of the judgment.
26      Attachment of enforcement order to judgment: The judge attaches the enforcement order (‘seal’) to the judgment.
*      Delivery of enforcement order: The court's enforcement order is delivered to a court enforcement officer or a (private) bailiff.
27      Request to Defendant to comply voluntarily with judgment: Plaintiff, a court enforcement officer or a (private) bailiff requests Defendant to voluntarily comply with the judgment, giving Defendant a last chance to comply voluntarily with the judgment.
28      Identification of Defendant's assets for attachment by court official or Defendant: Judge, a court enforcement officer, a (private) bailiff or the Defendant himself identifies Defendant's movable assets for attachment.
29      Contestation of selection of assets identified for attachment: The party, Plaintiff or Defendant, who was not involved in the designation of the assets to be attached, contests the selection of assets for attachment.
30      Attachment: Defendant’s movable goods are attached (physically or by registering, marking or separating assets).
31      Valuation or appraisal of attached movable goods: The court or court appointed valuation expert evaluates the attached goods.
32      Call for public auction: The judge calls a public auction by, for example, advertising or publication in the newspapers.
33      Sale through public auction: The Defendant’s movable property is sold at public auction.
34      Reimbursement of Plaintiff’s enforcement fees: Defendant reimburses Plaintiff's enforcement fees which Plaintiff had advanced previously.
35      Payment: Court orders that the proceeds of the public auction or the direct sale be delivered to Plaintiff.

Nature of Procedures 35
Specialized commercial courts -1
Total Number of Procedures 34
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