The New Supplemental Arrangement Concerning Enforcement of Arbitral Awards Between Mainland China and Hong Kong

The “Supplemental Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region” was signed on November 27, 2020 and entered into force partially on the same day and partially on May 19, 2021.

Significantly, the Supplemental Arrangement modifies and expands the existing “Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region”, which entered into force on February 1, 2000.  The modifications simplify enforcement proceedings and enhance judicial support to parties subsequent to arbitration proceedings bridging Mainland China and the Hong Kong Special Administrative Region, including by providing for:

• Simultaneous enforcement of arbitral awards in Hong Kong and Mainland China;
• Extension of the scope of the Enforcement Arrangement to cover also the recognition of arbitral awards;
• The ability for parties to arbitration proceedings with a seat in one of the two jurisdictions to apply to the courts of the other for interim measures after the rendering of an arbitral award;
• Enforcement of all arbitral awards having a seat in Hong Kong in Mainland China and vice versa, regardless of the administering arbitration institution.

This Alert Memorandum analyzes and summarizes the most prominent elements of the Supplemental Arrangement which are likely to be of significance to practitioners and users of arbitration involving Mainland China and Hong Kong.