DaHui Pens Article for China Law and Practice on the Hong Kong/Mainland China Interim Measures Arrangement

DaHui’s Jue Li and Joel Evans recently had the opportunity to write about an exciting arbitration development in an article (subscription only) for leading China law portal, China Law and Practice.

The Mainland China-Hong Kong Interim Measures Arrangement (“Arrangement”) is a landmark agreement that allows parties in certain Hong Kong-seated arbitral proceedings to apply directly to PRC courts to seek interim measures (e.g., freezing assets, ordering a party to continue performing contractual obligations, injunctions) prior to the issue of a final arbitral award.

Writing about the Arrangement, DaHui notes that “The significance of this is wide-reaching, and something parties doing business with Chinese companies should seriously consider when negotiating a seat of arbitration in their respective dispute resolution clause. The Arrangement is important because an application for an interim measure can have great significance at the enforcement stage of a successful award.” The Arrangement came into force in October 2019, and since then, the HKIAC has processed 86 applications to PRC courts, with the total value of court orders preserving assets reaching approximately USD 2.3 billion.

Why is the Arrangement such a big deal? “Interim measures ordered by tribunals seated outside of China have historically been unenforceable in China, regardless of whether an application was made by a foreign arbitral institution or the party directly. This has until recently, represented a significant barrier for parties involved in foreign seated arbitrations seeking interim relief in the mainland. It has also provided Chinese companies with a sort of immunity, because they know full well that an application for interim measures arising from a foreign seated arbitration, would almost certainly be unenforceable.” In less than four years, the Arrangement has already had a major impact on China’s arbitration landscape.

You can also read more about the Arrangement on HKIAC’s website.

About DaHui’s International Arbitration Team

DaHui offers a premium international arbitration practice in China. Led by widely recognized arbitration expert Arthur Ma, the practice features an international team with rich experience and solid capacity to handle the most complex cases. Our team members have participated in over fifty international arbitration cases in mainland China, Hong Kong, Singapore, England and elsewhere handling cases under various arbitration rules, such as ICC, CIETAC, HKIAC, LCIA and UNCITRAL Rules.

We understand the differences and intricacies of procedures in China-based and international arbitrations, in particular the styles of arbitrators hailing from common law and civil law disciplines. We are able to assist international clients (and arbitrators) to appreciate the nuances of PRC law and practice. DaHui is also one of the few Chinese law firms with extensive experience and success in conducting English oral advocacy in international arbitrations. With this combination of detailed understanding of PRC law and rich experience in international arbitration, DaHui is a one-stop shop for clients in international arbitrations with a China connection.