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How to Apply for Property Preservation in Chinese Lawsuit?


When one files an action in Chinese court, he/she may find that the counter-party is trying to transfer the property in order to evade the effective judgment in the future. What can the plaintiff do to avoid the unfavorable situation? Today we would like to introduce you some information abou the property preservation in Chinese lawsuit.



1. What is property preservation?


As mentioned above, it is common that the counter-party tries to transfer his property after he knows the lawsuit he being against or the counter-party may actually have no sufficient property to execute the judgement. These situations seriously influences the plaintiff’s interests, because even if the plaintiff wins the lawsuit with much efforts, the defendant may still refuse or have no ability to perform his duty according to the final judgment.


Therefore, it is very important for the plaintiff to apply for a property preservation against the counter-party before or in the process of filing a suit.


If the property preservation application is granted by the Chinese court and the preservation is conducted successfully, it means that the property of the counter-party ( such as bank account, real estate, vehicles, shares, etc.) has been frozen, so the counter-party can not transfer or hide its property to avoid performing the legal obligations.