The statute of limitations on claims is a classic institution of civil law that applies universally among various legal systems. With this in mind, Chinese legal system is no exception. It is easy to succumb to the misconception that a well-known institution translates one-to-one in China. However, are we sure it does?

1) What is a “statute of limitations” in Chinese law?

In Chinese law, as in most European legal systems , a statute of limitations is a plea that can be raised to evade a claim after a strictly defined period of time. In the following article, for the sake of simplicity, only the institution of statute of limitations in civil law will be discussed.
The statute of limitations in China cannot be taken into account ex officio, which is explicitly expressed in Article 193 of the Chinese Civil Code of May 28, 2020. (中华人民共和国民法典, pinyin: Zhonghua renmin gongheguo minfa dian).It is also clear from the decisions of the People’s Courts that the statute of limitations cannot be waived, nor can it be contractually shortened or extended.

 

2) Length of the statute of limitations in China

As a general rule, therefore, in civil cases, the statute of limitations is three years, as regulated by Article 188(1) of the Civil Code of China, with exceptions provided by laws usually extending it. The limitation period begins to run from the date on which the right holder knew or should have known that a violation had occurred and the person of the debtor was known to them.

According to Article 594 of China’s Civil Code, the statute of limitations for filing a lawsuit or arbitration on a dispute arising from an international sale of goods contract and a technology import and export contract is four years. The above means that for most disputes between Europeans and Chinese, the 4-year statute of limitations will apply.

As mentioned in Article 188(2) of the Chinese Civil Code, the maximum statute of limitations is 20 years, calculated from the occurrence of the event in question. However, the maximum limitation period may be extended if the right holder files an appropriate application with the People’s Court and the court determines that special circumstances have occurred.

The running of the limitation period may also be suspended if one of the circumstances enumerated in Article 194 of the Civil Code of China has occurred during the last six months of the period:

1. Force majeure;
2. If an incapacitated person or a person with limited legal capacity does not have a legal representative;
3. No heir or administrator of the inheritance has been established;
4. The right holder is controlled by the person against whom they have an allegation;
5. Other obstacles prevent the right holder from exercising the plea.

The statute of limitations expires 6 months after the reason for suspension of the statute of limitations ceases.

 

3) Significant differences between Polish and Chinese institutions

According to the regulations of Article 195 of the Chinese Civil Code, the statute of limitations is interrupted by one of the following circumstances:

1. Addressing the debtor with a demand for performance;
2. The debtor’s agreement to perform the obligation;
3. Requesting arbitration or filing a lawsuit;
4. Other circumstances that have an effect similar to filing a lawsuit or requesting arbitration.

Interruption of the statute of limitations means that the limitation period must be counted anew, this time from a new date.

In comparison, in Polish law, the course of the statute of limitations is interrupted by recognition of a claim, by the person against whom it is due, or by any action before a court or other body appointed to hear cases or enforce claims of a given type, or before an arbitration court, taken directly to assert or establish or satisfy or secure a claim (Article 123 of the Polish Civil Code).

An analysis of the two provisions makes it possible to see the much broader scope of actions covered by Article 195 of the Civil Code of China. In practice, to interrupt the course of the statute of limitations, it is enough to send a letter of demand to the debtor. It is debatable whether sending an e-mail also counts, so it is advisable to send a physical letter by mail to the official address of the company’s registered office. Nonetheless, it should be said that in China it is much harder to lose the ability to assert one’s claim under the statute of limitations than in Poland – where it is often one of the primary objections.

 

4) Examples

Mr. Nowak purchased a desktop computer from a Chinese company on August 3, 2021. This is an example of an international sale of goods, so the statute of limitations will expire on August 3, 2025. Mr. Nowak paid the agreed price with the seller for the goods, received an invoice, but did not receive the goods. On August 2, 2025, Mr. Nowak sent the company a letter requesting that the contract be fulfilled. With this in mind, Mr. Nowak effectively interrupted the running of the statute of limitations, so that the statute of limitations will expire at the end of August 2, 2029.

Ms. Maria purchased a cell phone from the Chinese company Mamahuhu on April 1, 2020. She had previously considered an offer from the Chinese company Sanbuzhi. Ms. Maria mistakenly paid the Sanbuzhi company for the cell phone, even though they were not bound by any contractual relationship, which is an example of unjust enrichment. In this situation, the statute of limitations is 3 years, and the statute of limitations expired at the end of April 1, 2023.

 

5) Summary

In summary, although the two institutions are very similar, they differ primarily in details. From practice, the interruption of the statute of limitations in China is extremely simple, making it almost non-existent. In comparison, the statute of limitations in Poland is relatively common due to more restrictive prerequisites.

Natalia Wilczyńska

She is studying law as part of Interdisciplinary Individual Studies in the Humanities at the University of Warsaw. In 2023, she graduated in sinology from the University of Warsaw.

natalia.wilczynska@hanglung-law.com