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CONFIDENTIAL
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3.
In practice the use of foreign diplomatic channels is not only restricted to cases in which the party to be served is a foreign citizen, but, because of the extraordinary time delays involved, is also restricted to cases in which other means of service have failed. The use of Chinese diplomatic missions to effect service is restricted to service of Chinese citizens who are resident in the place of service. Service by double registered post is regularly used by Chinese courts to effect service where postal service is permitted by the laws of the place of service. A court will generally accept the postal receipt as evidence of service. As a general rule a Chinese court will not entrust service to a foreign court unless it is permitted to do so by the terms of a bilateral judicial assistance treaty. If a foreign party has appointed a Chinese lawyer or other qualified person to act as a legal representative within the P.R.C. the court will usually serve the representative instead of the foreign party. Sometimes a court will serve a commercial representative or agent. Finally, if the address of the party to be served is unknown or for any reason other methods of service are ineffective, service may be made by a public announcement in a P.R.C. newspaper. This type of service is deemed to be effective six months after publication.
4.
The treatment of Hong Kong parties under Chinese law is in practice normally governed by the rules that apply to foreign parties. However there are many exceptions to this practice. According to Mr. Zhang Mao service in Hong Kong through foreign or Chinese diplomatic channels is not acceptable to the Supreme People's Court as this method implies recognition of the validity of British rule in Hong Kong. Consequently, aside from Guangdong provincial courts which may make use of the existing agreement regarding the service of documents, Chinese courts have been instructed to use double registered post to serve parties who are resident in Hong Kong. If service by this method cannot be effected, service by public announcement in a P.R.C. newspaper is permitted. Service is deemed effective three months after publication.
5.
At present the Chinese authorities are showing some flexibility regarding the methods of service which may used within the P.R.C. to satisfy the requirements of Hong Kong or foreign litigation. In order for service of this type to be recognized in the P.R.C. as a 'legal act' the foreign or Hong Kong party must either use diplomatic channels or the provisions of any applicable judicial assistance agreement. However, according to Mr. Zhang, the Supreme People's Court has not prohibited service on Chinese parties by other methods, such as personal service effected through a Chinese
CONFIDENTIAL
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