China revealed more reforms to streamline the administration of foreign civil and commercial lawsuits. In a 25 February announcement, the vice-president of China's Supreme People's Court (SPC), Wan Exiang, said the new arrangements are part of China's efforts to tailor its legal system to fit the demands of World Trade Organisation (WTO) membership.

As of 1 March 2002, several courts will be able to administer the first hearings of foreign civil and commercial actions. These include intermediate courts in the provincial and autonomous regional capitals and the municipalities, or in the special economic zones and major cities or in other SPC authorised intermediate and higher courts.

Courts authorised by the State Council in economic and technological development zones will also handle the first hearings of certain cases. The new regulations stipulate that disputed first settlements in these courts would be taken to local intermediate courts.

Regulatory scope

As well disputes over letters of credit, the regulations apply to cases involving foreign contracts and tort disputes. The SPC authorised courts will also be able to hear appeals for the withdrawal, admission or enforcement of settlements made either by foreign courts or by international arbitration.

The regulations apply to disputes with mainland China, Hong Kong and Macao special administrative regions and Taiwan. Cases instigated prior to 1 March 2002 will proceed under the old regulations.

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