Jurisdiction of China litigation

Jurisdiction of China litigation
Jurisdiction is a basic notion in law that relates to a court's power to hear and resolve a specific matter. In China, there are two types of jurisdiction: level jurisdiction and territorial jurisdiction.
 
The ability of separate courts to consider matters of varying complexity is called level jurisdiction. Unless otherwise stated by law, the basic people's court has jurisdiction over first-instance civil matters under level jurisdiction. The intermediate people's court hears large international cases, those with substantial local ramifications, and matters chosen by the Supreme People's Court. The high people's court hears first-instance civil matters with major consequences within its jurisdiction. The Supreme People's Court has jurisdiction over national ramifications and those it considers important to hear.
 
 
Territorial jurisdiction refers to a court's power based on the parties or the subject matter of the case's location. The court having jurisdiction over civil actions filed by people is the one where the defendant lives. If the defendant's domicile differs from their normal address, the court having jurisdiction is the one in which they live. The court having jurisdiction over litigation against legal persons or other organizations is the one where the defendant is situated. If there are many defendants with various addresses or habitual residences, the matter may be heard in any court having jurisdiction.
 
Other regulations apply to different sorts of civil lawsuits. For example, in contract disputes, the court having jurisdiction is either the defendant's residence or the site of contract performance. For insurance contract disputes, the court having jurisdiction is either the defendant's domicile or the location of the covered property. The court having jurisdiction over issues originating from bills of exchange is either the location of payment or the defendant's residency.
 
If a court determines that it lacks jurisdiction over a matter, it must transfer the case to another court that does. If the court to which the matter is referred likewise lacks jurisdiction, it may seek that the higher court assigns jurisdiction. If there is a disagreement regarding jurisdiction between courts, the courts should strive to settle it via dialogue. They may petition their common higher court for jurisdiction if they cannot reach an agreement.
 
Nevertheless, parties to a dispute may agree in writing to designate a court with jurisdiction if the designation does not contradict the principles of level and exclusive jurisdiction.
 
These jurisdictional requirements guarantee that matters are heard by the proper court and contribute to China's fair and functional judicial system.