Under What Circumstances Can You Apply for Advance Enforcement
If you are a claimant in international commercial arbitration in China, you may file an application with a competent court for an order for advance enforcement if you consider it necessary in case of an emergency. The court receiving your application will issue an order for advance enforcement if it deems it necessary.
In what case will your application for advance enforcement be deemed necessary?
According to the Civil Code and the Arbitration Law, the competent court should deem it necessary to issue an order for advance enforcement if:
1. There is no dispute between the claimant and the respondent over their rights and obligations, and business operation of the claimant will be adversely affected to a great extent if no advance enforcement were taken to exercise his rights and claims; and
2. The respondent has the ability to perform his obligations.
The purposes of the advance enforcement mechanism are to ensure that the legal rights and claims of the claimant will be exercised according to law, and prevent the respondent from evading his obligations by property transfer, squandering, etc.
Before or after an order for advance enforcement is issued, the respondent may be ordered to pay a deposit to the enforcement court to release his property from freezing, seizure, or detention. If a deposit is paid before the issuance of an order advance enforcement, the claimant’s application will be dismissed.
Provided, however, that if the respondent has an objection to the order, he may file a written challenge to the court making the order. In such a case, the execution of the order will be suspended in the process of arbitration.
Provided, further, that if the claimant loses the case, he shall make compensation for the damage and loss, if any, incurred to the respondent and the costs for taking the enforcement action.
Robert Zhang 
Steve Li 