Recently, the Supreme People's Court (SPC) has issued the Interpretation on Issues Concerning the Application of Law in the Trial of Cases Involving Objections to Enforcement (the "Interpretation"), which shall take effect on July 24, 2025.
The key highlights of the Interpretation include: (1) refining provisions on jurisdiction, filing of lawsuits, and the consolidation of related claims in cases involving objections to enforcement; (2) clarifying the effect of judgments in cases of objections to enforcement on the enforcement process, as well as the coordination between adjudication and enforcement; and (3) detailing provisions on several common types of civil rights and interests that may exclude enforcement. The Interpretation also specifies the legal liability and corresponding measures for obstructing lawful enforcement through sham litigation. It stipulates that where, after substantive examination, a court finds that a third party holds civil rights or interests in the subject matter of enforcement sufficient to exclude it from enforcement, the court shall concurrently render a judgment to lift corresponding enforcement measures to ensure that the real holder of rights is promptly relieved from such enforcement. With respect to circumstances such as the trial of enforcement objection cases, retrial of enforcement bases during review process, and the bankruptcy of the party subject to enforcement, the Interpretation provides that, in principle, the trial and review shall proceed, and rulings shall be rendered in accordance with the law, taking into account the connection with the retrial proceedings, if it cannot be established that the third party holds rights to exclude enforcement, the litigation shall be suspended.