Choice of law as a conflict of laws mechanism to resolve disputes arising from cross-border civil and commercial activities has become a pressing matter in China as a result of the nation's rapid economic growth and a significant increase in foreign business engagement. The adoption of the Choice of Law Statute is the latest development in the conflict of laws legislation in China. Driven by the need to cope with ever-escalating civil disputes that contain foreign elements, the Choice of Law Statute intends to provide a choice of law scheme by which the application of law is dealt with in a more certain and predictable way in China.
In comparison with other countries, China does not have a rich experience in conflict of laws. The Choice of Law Statute thus draws a great deal from foreign laws and international conventions. Nonetheless, the Statute also strikes to stand on the footing of Chinese reality. The Choice of Law Statute reflects a number of foreign approaches and international rules in choice of law and combines these elements with the existing practice and legislative preference of China.
Zhonghua Renmin Gongheguo Shewai Minshi Guanxi Falu Shiyong Fa [Law of the People's Republic of China on the Laws Applicable to Foreign-Related Civil Relations] ( promulgated by Standing Comm. Nat'l People's Cong., Oct. 28, 2010, effective on Apr. 1, 2011), translated in Law of the People's Republic of China on the Laws Applicable to Foreign-Related Civil Relations, Conflict of Laws (Jan. 12, 2011), http://conflictoflaws.net/2011/p-r-chinas-first-statute-on-choice-of-law-translated-in-english/.