PRC signs the Hague Convention on Choice of Court Agreements
On 12 September 2017, the People’s Republic of China (the “PRC”) signed the Hague Convention on Choice of Court Agreements (the “Convention”). The Convention seeks to promote the use of exclusive choice of court agreements in international contracts by requiring effect to be given both to such agreements and to the judgments of courts nominated thereunder.
Initially, the Convention entered into force in EU (except Denmark) and Mexico on 1 October 2015. Since October 2016, the Convention is also in force in Singapore. The PRC, Ukraine and the United States have signed the Convention, but have not ratified it yet.
The signing of the Convention does not have any immediate legal consequence, but is an indication of will and hopefully the PRC will ratify and conclude it in due course. Under the PRC law, the Convention may be ratified by either the Standing Committee of the National People’s Congress, which meets every two months, or the National People’s Congress itself, which generally meets every February/March.