Reflections on the Effects of Foreign Judg-Ments in Recognizing Countries

Some legal systems account for the effects to foreign judgments through “recognition” of the foreign judgments. There are three main approaches to recognizing the effects to foreign judgments: the “extension of effects” approach, the “equalization of effects” approach and the “combined effects” approach. The approach chosen can significantly affect relevant stakeholders, including but not limited to the litigants, the recognizing country, the requested court and the original country. The more deeply the stakeholders' interests are coordinated, the better the approach will be. In China, the relevant scattered rules suggest the country as has adopted the “equalization of effects” approach; this approach entails an investigation into effects of Chinese judgments. Under Chinese law, foreign judgments may have three effects: the “claim preclusive” effect, the “issue preclusive” effect, and the “enforcement” effect. In practice, Chinese courts show no familiarity with the effects of foreign judgments in China. However, as international litigation and judicial cooperation progress, the issue of effects of foreign judgments in China will definitely become more prominent.