Party Autonomy in Contractual Choice of Law in China

The principle of party autonomy in contractual choice of law is widely recognised in the law of most jurisdictions. It has been more than thirty years since party autonomy was first accepted in Chinese private international law. However, the legal rules provided in legislation and judicial interpretations concerning the application of the party autonomy principle are abstract and open-ended. Without a critical understanding of the party autonomy principle and appropriate interpretations of the relevant legal rules, judges have not exercised their discretionary power appropriately. The party autonomy principle has been applied in a way that undermines its very purpose, that is, to protect the legitimate expectations of the parties and promote the predictability of outcomes in transnational commercial litigation. Jieying Liang addresses the question of how, when, and with what limitations, parties' choice of law clauses in an international commercial contract should be enforced by Chinese courts.

1. The development of the party autonomy principle in China; 2. The background to the development of party autonomy; 3. The existence and validity of parties' choice of law; 4. The 'law' that can be chosen by parties; 5. Statutory restrictions on party autonomy (I); 6. Statutory restrictions on party autonomy (II); 7. Ascertainment of the foreign law chosen by parties; 8. Contractual choice of law under the 'One Country, Two Systems' regime; 9. The party autonomy principle in the context of the Chinese legal system.

Jieying Liang is Senior Research Assistant in the Faculty of Law, The University of Hong Kong. She has been engaged in a research project funded by the Research Grants Council in Hong Kong concerning cross-border corporate, financial and securities dealings for several years. The Hague Conference on Private International Law cited her in drafting the Hague Principles on Choice of Law in International Contracts. She has received the Fulbright Fellowship and a scholarship from The Hague Academy of International Law.