| Principal legal framework | Commercial civil disputes are principally governed by the Civil Code and the Civil Procedure Law, together with applicable judicial interpretations and other relevant legislation. | Identify the legal basis for each claim and check whether special rules apply to the transaction or industry. |
| Common dispute types | Business litigation commonly concerns contracts, sales of goods, loans, guarantees, construction, company-related matters, intellectual property, and tort claims. | Classifying the dispute correctly can affect the competent court, evidence required, and available remedies. |
| Court jurisdiction | Territorial jurisdiction commonly depends on the defendant’s domicile or, for contract disputes, a legally relevant place such as the place of performance. A valid written jurisdiction agreement may also be relevant. | Check jurisdiction before filing. An agreement cannot confer jurisdiction on a court that is not permitted by law to hear the case. |
| Court level | Many commercial cases begin in a basic-level people’s court. Statutory rules, the nature of the case, and applicable jurisdiction arrangements may place a case in an intermediate or other competent court. | Which court hears a case at first instance can depend on subject matter and current jurisdiction rules; monetary thresholds and local arrangements should be verified. |
| Limitation period | The general limitation period for requesting protection of civil rights is three years under the Civil Code, subject to statutory exceptions. The general long-stop period is 20 years from the date the right was harmed, subject to legal provisions. | Accrual, suspension, interruption, and exceptions can affect the calculation. Preserve evidence of demand letters, acknowledgments, payments, and other relevant events. |
| Burden of proof | As a general rule, a party must provide evidence for the facts supporting its claims or defenses. The court evaluates evidence under the applicable procedural rules. | Organize contracts, amendments, invoices, delivery records, payment records, correspondence, and witness or expert evidence by issue. |
| Electronic evidence | Electronic data can be used as evidence. Its authenticity, integrity, source, and connection to the disputed facts may be examined by the court. | Retain original files and relevant metadata where possible; document how messages, records, and data were obtained and stored. |
| Property preservation | A court may order preservation measures, including freezing or sealing property, where statutory requirements are met. In urgent pre-litigation circumstances, an applicant may need to commence the relevant proceeding within the statutory period after the measure is granted. | Identify assets and prepare supporting materials promptly. The court may require security, and an improper application can lead to liability for losses. |
| Mediation and settlement | Parties may negotiate or settle, and courts may conduct or facilitate mediation in accordance with procedural rules. Mediation is not a substitute for protecting limitation periods and procedural deadlines. | Put any settlement terms in writing, including payment dates, default consequences, and the steps for resolving any remaining dispute. |
| Appeal deadlines | For a first-instance civil judgment, the usual appeal period is 15 days from service; for a ruling, it is generally 10 days, subject to applicable law and service rules. | Calculate the deadline from the legally relevant date of service and confirm the applicable procedure promptly. |
| Judgment enforcement | A party may apply to a competent people’s court to enforce an enforceable judgment or other qualifying legal instrument. The general period for applying for enforcement is two years, with statutory rules governing its calculation. | Keep records of the effective instrument and identify the debtor’s assets. Enforcement outcomes depend on available assets and applicable procedures. |
| Scope and verification | This table gives a general overview of civil commercial litigation in mainland China and is not a case-specific legal opinion. | Confirm current legislation, judicial interpretations, court jurisdiction, and procedural requirements against the facts of the particular dispute. |