A Chinese couple who fled to the UK owing over 245 million RMB lost their jurisdiction defense. On February 11, the UK High Court recognized Nanjing court judgments, ruling that the couple's prior consent and actual ties to China made the debts enforceable abroad.
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No Escape Abroad: Chinese Couple Facing Cross-Border Pursuit for 245 Million RMB Debt
A landmark legal case has proven that moving abroad does not necessarily mean escaping financial obligations in China. The Nanjing Intermediate People's Court recently announced that the High Court of England and Wales has officially recognized five civil judgments against a couple, surnamed Yuan and Gao, who relocated to the UK while owing more than 245 million RMB.
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The Debt and the Disappearance
The story began with the couple's business, Han** Co., Ltd. During its operation, Yuan and Gao borrowed heavily from individuals and entered into several investment partnerships. When the company hit financial trouble, creditors demanded their money back, but the couple could not be found. Nanjing courts proceeded with the lawsuits in their absence, using "service by public announcement" to notify them legally. Ultimately, the courts ordered the couple to repay the principal, interest, and costs, totaling over 245 million RMB.
The "Jurisdiction" Defense
Once the judgments were finalized, the creditors discovered the couple had moved to the United Kingdom and launched a cross-border recovery process. In the UK court, Yuan and Gao argued that China had no jurisdiction over them. They claimed they had settled in Cyprus in 2016, obtained Cypriot passports in 2017, and were not living in China when the lawsuits began. They insisted they never received notice of the trials and never agreed to be judged by Chinese courts.
The UK Court's Ruling
The High Court of England and Wales dismissed these arguments on February 11, ruling that the Nanjing judgments are valid and enforceable in the UK. The court found that the original business contracts explicitly stated that any disputes would be handled by Nanjing courts, which satisfies the legal requirement of "prior consent" to jurisdiction.
Furthermore, while the couple claimed to live in Cyprus, their travel records, spending habits, and business activities proved they maintained actual residential ties to Nanjing when the litigation started. Most importantly, the UK court fully accepted that the Chinese "service by public announcement" process was a legitimate and fair way to handle missing defendants, meaning the couple's procedural rights were respected.
Source: 扬子晚报
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