[1] Background and Core Changes of the New Regulations: Strengthening China’s Foreign-Related Judicial Jurisdiction

[2] In 2026, the Supreme People’s Court issued the "Regulations on Certain Issues Concerning Jurisdiction over Foreign-Related Civil and Commercial Cases," aiming to address increasingly complex cross-border commercial activities. The core of the new regulations lies in expanding the scope of jurisdiction of Chinese courts over foreign-related civil and commercial cases, clarifying the "substantial connection" standard, and refining the validity of agreed jurisdiction. For example, if parties agree to choose a Chinese court for jurisdiction, the court may exercise jurisdiction as long as the dispute has a reasonable connection with China. This move will significantly enhance China’s appeal in international commercial dispute resolution, providing more convenient judicial protection for enterprises involved in the Belt and Road Initiative.

[3] New Regulations on Agreed Jurisdiction and Exclusive Jurisdiction: Compliance Points Enterprises Need to Note

[4] The new regulations further relax the written form requirements for agreed jurisdiction, allowing electronic communication records (such as emails and instant chat logs) to serve as valid evidence. At the same time, the scope of exclusive jurisdiction cases involving real estate, intellectual property, etc., is clarified to prevent parties from circumventing it through agreements. Enterprises should promptly review the jurisdiction clauses in existing foreign-related contracts to ensure compliance with the new regulations, avoiding increased litigation costs due to invalid jurisdiction. For example, cross-border trade contracts may prioritize agreeing on Chinese court jurisdiction to leverage the convenience of the new regulations.

[5] Impact on Parallel Proceedings and Arbitration: Adjusting Cross-Border Dispute Resolution Strategies

[6] The new regulations adopt a more flexible approach to parallel proceedings (the same dispute litigated in multiple countries simultaneously), allowing Chinese courts to suspend or dismiss cases under specific conditions to promote international judicial cooperation. Additionally, the new regulations clarify the principle of independence of arbitration agreements, emphasizing that courts must not interfere with arbitration proceedings on jurisdictional grounds. Enterprises may consider shifting dispute resolution clauses from pure litigation to a "litigation + arbitration" dual-track system to address enforcement risks across different jurisdictions. It is recommended that legal teams simulate dispute scenarios under the new regulations in advance and develop contingency plans.