The Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region, which allows for specific court rulings from mainland China to be enforced in Hong Kong, officially came into effect on Monday.

Hong Kong implemented the arrangement by local legislation. The Legislative Council of Hong Kong passed the relevant Ordinance, Mainland Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance (Cap. 645), in October 2022. In the Mainland, the Supreme People’s Court promulgated a judicial interpretation on Monday to implement the arrangement. The arrangement was implemented under Article 95 of the Basic Law, which allows Hong Kong to maintain juridical relations with the judicial organs of other parts of the country to provide mutual assistance.

The arrangement will not automatically impose judgments from across the border in Hong Kong. Instead, judgments will go through procedural steps and may be refused enforcement under certain circumstances outlined in the law. Section 5 of the Ordinance excludes certain categories of judgments, such as matrimonial and family law judgments, judgments for enforcement of arbitral awards and corporate and personal insolvency judgments.

Secretary for Justice Paul Lam, SC, highlighted that the arrangement showcases the unique advantages enjoyed by Hong Kong under the “one country, two systems” principle. Lam remarked that implementing the arrangement is expected to enhance Hong Kong’s reputation as a regional intellectual property trading center and a hub for international legal and dispute resolution services.

The arrangement broadens the scope of civil and commercial judgments from mainland China that can be recognized and enforced in Hong Kong. According to a local law firm, the arrangement will reduce the need for re-litigation in Hong Kong and save time, costs and resources. Additionally, judgment creditors will be able to pursue injunctions and orders for specific performance, expanding their options for enforcing judgments.

The arrangement comes at a time when Hong Kong is preparing to enact new national security laws known as Article 23. Chief Executive John Lee Ka-chiu emphasized the need to explain Article 23 thoroughly and warned of troublemakers in a conference last week.