ABOUT THE AUTHOR: Richard Frimston TEP is a
Partner and Head of the Private Client Team at Russell-Cooke LLP,
and Chairman of the STEP EU Committee
While members of the European Central Bank (ECB) have been
visiting China a lot recently, other readers may not necessarily
have studied the Decree of the President of the People’s
Republic of China No. 36 on the Laws Applicable to Foreign-related
Civil Relations, adopted on 28 October 2010 at the 17th
session of the Standing Committee of the 11th National People’s
Congress of the People’s Republic of China. This came into effect
on 1 April 2011.
It is ever so snappy. Not having much Mandarin or Cantonese, I
rely on the translation of Professor Lu, the Secretary General of
the Chinese Society of International Law, available from
bit.ly/ChinaPIL.
Chapter 1 contains general provisions
Article 9: ‘The foreign law applicable to a foreign-related
civil relation does not include the conflict rules of that country’
means that there is no renvoi, so reference to a
particular law is to the internal or domestic law.
Chapter 3 deals with marriage and family
Article 24: ‘In respect of spousal property, the parties may by
agreement choose to apply the law of a party’s habitual residence
or nationality, or the law of the place where the main property
locates. Absent any choice by the parties, the law of their common
habitual residence shall be applied; absent common habitual
residence, the law of their common nationality shall be applied.’
So make sure you have choice of law provisions in all prenuptial
agreements and matrimonial contracts.
‘Quite how the People’s Republic of China defines
habitual residence, I do not know’
Chapter 4 deals with succession
Article 31: ‘Statutory succession is governed by the law of the
habitual residence of the deceased when he/she dies. However,
statutory succession of immovable property is governed by the law
where the immovable property locates.’
Article 32: ‘A will is considered formed if the testamentary
form conforms to the law of the habitual residence of the testator
when he/she creates the will or when he/she dies, or to the law of
his/her nationality, or to the law of the place where the act of
creating the will occurs.’
Article 33: ‘The effect of a will is governed by the habitual
residence of the deceased when he/she creates the will or when
he/she dies, or by the law of his/her nationality.’
Article 34: ‘Matters of estate administration, etc, are governed
by the law of the place where the estate locates.’
Article 35: ‘Ownership of estate without a successor is governed
by the law of the place where the estate locates when the deceased
dies.’
No choice of applicable law here. Quite how the People’s
Republic of China defines habitual residence, I do not know, and I
am not sure that I understand the interaction of articles 31 and
33. If only I had the time I would be attending the Hague Academy
of International Law Summer School in 2012 to learn the answers to
these questions from Chen Weizuo, Professor at Tsinghua University,
Beijing, who is talking on the new codification of Chinese private
international law (PIL). Details are online at bit.ly/HagueAcademy.
I do hope that a STEP member will soon provide an article or two on
these topics and provide enlightenment.
Given that the new Chinese PIL only deals with applicable law
and does not include questions of jurisdiction, recognition,
enforcement or inheritance certificates, perhaps those in Brussels
now struggling with the proposed Succession and Matrimonial
Property Regime Regulations could simply ratify the Chinese
code? Could this help the ECB?
Parts of the UK government may certainly find this more their
cup of tea.