Petitioner’s Obligation to Provide Security for Preservation of Property

According to the Civil Procedure Law of the People’s Republic of China, a petitioner for preservation of property or evidence or enforcement of a decree, an arbitration award, or other legal processes, shall be obliged to provide security for his petition as determined by the court.

If the petitioner fails to provide the security as ordered, his petition will be rejected. And if the party against whom the petition is filed provides a security, the preservation measures will be cancelled.

In international arbitration in China, a petition for enforcement of property may be submitted to the arbitration commission for referral to or directly submitted to the court of competent jurisdiction. The said court of competent jurisdiction refers to the intermediate people’s court in the place where the property or domicile of the party against whom the petition is filed.