Litigation 2025

CHINA Law and Practice Contributed by: Chuanhong Long, Ji Liu and Xiao Jin, CCPIT Patent and Trademark Law Office

1. General 1.1 General Characteristics of the Legal System As a civil law country, China’s legal system is primarily based on written laws. Complement- ing these laws, the Supreme People’s Court and the Supreme People’s Procuratorate periodically issue judicial interpretations. These interpreta- tions serve as crucial guidance for courts nation- wide, ensuring consistent application of laws across different regions and cases. In addition to these judicial interpretations, the various ministries and commissions under the State Council are empowered to formulate and issue regulations within their respective domains of authority. Together, these elements – the laws, judicial interpretations, and regulations – consti- tute the core of China’s statutory legal system. The people’s courts of China hear all types of cases within their respective jurisdictions, including civil, administrative, criminal cases and other cases. In the course of litigation, the people’s courts encourage the parties to engage in adversarial activities to ascertain the truth through evidence, debate between the parties, court investigation, appraisal and other means. The legal process is conducted in China through both written submissions and oral arguments. There must be a hearing for the trial of first instance while the appellate court is likely to hold a hearing for the parties to review the first instance judgment. 1.2 Court System The Chinese court system has the following four- tier structure: • the basic-level people’s courts;

• the intermediate people’s courts; • the high people’s courts; and • the Supreme People’s Court.

The basic people’s courts are usually located in counties, cities without districts and urban dis- tricts on the basis of population. The interme- diate people’s courts are usually set up in the cities within provinces and the districts within municipalities directly under the Central Gov- ernment. The high people’s courts are typically established in each province and in municipali- ties. The Supreme People’s Court is the highest judicial organ in China. Each court may hear different types of cases, including civil cases, criminal cases and admin- istrative cases by organising different divisions within the court. Higher-level courts hear appeals to the judgments made by lower-level courts. The judgment made by the Supreme People’s Court is the final decision and is not appealable. In addition, China has railway transportation courts, maritime courts, IP courts, and financial courts, which are equivalent to the intermediate people’s court. As implied by their titles, these courts have expertise in adjudicating specific types of cases related to their respective fields. Generally, most civil lawsuits of first instance are heard by the basic people’s courts and reviewed by the intermediate people’s courts. The deci- sion made by the appeal court is final. The losing party in the appeal may request a retrial after the second instance; however, this may not be accepted by the courts in the absence of a valid reason or new conclusive evidence. 1.3 Court Filings and Proceedings Court filings in China are not public. Chinese courts organise exchange of evidence and legal

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