I. Preservation Measures
1. Application
(1) Upon the application of a party, the People's Court may order preservation measures of property, compel specific actions, or prohibit certain actions where it determines that a judgment may be difficult to enforce or that the party's rights may be harmed due to the actions of the opposing party or other circumstances. The People's Court may also order preservation measures at its discretion as necessary.
The People's Court may require the applicant to provide a guarantee when adopts preservation measures. If the applicant fails to provide a guarantee, the application will be dismissed.
(2) Where interested parties face urgent circumstances and immediate preservation is necessary to prevent irreparable harm to their lawful rights, they may apply for preservation measures to the People's Court at the location of the property to be preserved, the domicile of the respondent, or the People's Court with jurisdiction over the case before initiating litigation or arbitration. The applicant must provide a guarantee; otherwise, the application will be dismissed.
If the applicant fails to lawfully initiate litigation or arbitration within 30 days after the People's Court adopts preservation measures, the People's Court will lift the preservation.
(3) Parties or interested parties applying for property preservation shall submit a written application and relevant evidentiary materials to the People's Court.
The application shall include:
a. The identities, service addresses, and contact details of the applicant and the respondent;
b. The claims, factual basis, and legal grounds;
c. The amount sought to be preserved or the subject matter of the dispute;
d. Specific information or clues regarding the property to be preserved;
e. Details of the guarantee provided (e.g., property information, credit certificates) or reasons for exemption from providing a guarantee;
f. Other necessary information.
If a creditor applies for property preservation after a legal document has taken effect but before enforcement proceedings commence, the application must specify the issuing authority, document number, and key contents of the effective legal document, accompanied by a copy thereof.
(4) During arbitration proceedings, the parties applying for property preservation shall submit the application and arbitration case acceptance notice through the arbitration institution to the People's Court. Where the People's Court rules on the adoption of preservation measures or rules on the dismissal of the application, the court's decision will be served to the the parties and the arbitration institution will be notified.
(5) When parties or interested parties apply for property preservation, clear information or clues regarding the property shall be provided.
(6) During retrial review, the People's Court will not accept applications for preservation of property specified in an effective legal document.
During retrial proceedings, where the enforcement of the original effective legal document is suspended, the People's Court will accept preservation applications.
2.Guarantee for Preservation
(1) Interested parties applying for pre-litigation preservation must provide a guarantee. For pre-litigation property preservation, the guarantee amount shall generally equal the preservation amount requested; the People's Court may adjust this based on special circumstances. For pre-litigation behavioral preservation, the guarantee amount shall be determined by the People's Court.
In ongoing litigation, the People's Court shall decide whether a guarantee is required and its amount based on the case specifics.
(2) Where the People's Court orders a guarantee under the Civil Procedure Law of the People's Republic of China, the guarantee amount shall not exceed 30% of the preservation amount requested. If the preserved property is the subject of the dispute, the guarantee shall not exceed 30% of the property's value.
If the guarantee provided is insufficient to cover potential losses to the respondent during preservation, the People's Court may order the applicant to provide additional guarantee. Refusal to provide additional guarantee may result in partial or full lifting of the preservation.
(3) A written guarantee for property preservation provided by the applicant or a third party shall be submitted to the People's Court, specifying the guarantor, guarantee method, scope, property details, value, and liability. Supporting evidence must be attached.
If a third party provides a guarantee, a written guarantee with the above details and evidence shall be submitted.
If the guarantee violates mandatory provisions relating to the Civil Code, the Company Law, or other relevant laws, the People's Court will order the applicant to provide an alternative guarantee within a specified period. Failure to comply results in dismissal of the application.
(4) An insurer providing a guarantee via a preservation liability insurance contract shall submit a written guarantee to the People's Court, stating that the insurer will compensate the respondent for losses caused by erroneous preservation. Supporting evidence must be attached.
(5) Financial institutions approved by regulatory authorities may provide guarantees in the form of independent letters of credit, which the People's Court will accept.
(6) The People's Court may waive the guarantee requirement in the following circumstances:
a. Public interest litigation filed by the People's Procuratorate;
b. Cases with clear facts and law application, where the risk of erroneous preservation is very low;
c. Applicants are financial institutions (e.g., commercial banks, insurers) and their branches approved by regulatory authorities with independent solvency.
Guarantees may also be waived for creditors applying for preservation after a legal document takes effect but before enforcement proceedings commence.
II. Preliminary Enforcement
1. The People's Court may order preliminary enforcement upon a party's application in urgent cases, including:
(1) Immediate cessation of infringements or removal of obstructions;
(2) Immediate prohibition of specific actions;
(3) Recovery of urgently needed insurance claims to resume production or operations;
(4) Immediate return of social insurance or relief funds;
(5) Situations where delayed repayment would severely impact the applicant's livelihood or business operations.
2. Preliminary enforcement ruled by the People's Court shall meet the following conditions:
(1) The rights and obligations between the parties are clear, and failure to enforce would severely affect the applicant's livelihood or business operations;
(2) The respondent has the capacity to fulfill the obligations.
The People's Court may require the applicant to provide a guarantee. Failure to do so results in dismissal. If the applicant loses the case, they shall compensate the respondent for losses caused by preliminary enforcement.
III. Reconsideration
Parties dissatisfied with rulings on preservation or preliminary enforcement may apply for reconsideration to the issuing People's Court within 5 days of receiving the ruling. Enforcement continues during reconsideration.
The People's Court will review the application within 10 days of receipt. If the ruling is correct, the application will be dismissed; if incorrect, the ruling will be amended or revoked.
Reconsideration applications from interested parties will be handled by the issuing People's Court in accordance with the Civil Procedure Law of the People's Republic of China.
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