Vol 20 (2023) - Issue 4

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Beijing’s New Approach Towards Reciprocity in Cross-Border Insolvency: (2022) Jing No. 1 Po Shen No. 786

Synopsis
On 16 January 2023, the Beijing Bankruptcy Tribunal under the No. 1 Beijing Intermediate Court recognised a German insolvency judgment. This is the first time that a Chinese court abandoned the real reciprocity test in cross-border insolvency cases. In other words, the judges granted recognition of an insolvency judgment in a jurisdiction which had not de facto recognised a Chinese insolvency judgment before. It showed a significant move in the Chinese cross-border insolvency judicial practices. Together with the 2021 Mainland-Hong Kong cross-border insolvency cooperation mechanism, China is gradually embracing a more open international insolvency policy.