Step 5 — Judgment & Award

Overview

After the evidence stage, the court or tribunal deliberates and issues its decision: a judgment (判决) in litigation, or an award (裁决) in arbitration. The two diverge sharply on one crucial point — whether the decision can be appealed — which is why the forum choice made at Step 1 echoes all the way to the finish.

Timing

• Court, first instance — the statutory time limit is generally 6 months for ordinary procedure (and 3 months for summary procedure), extendable with approval. In practice, a first-instance commercial case commonly takes 6–18 months.
• Court, second instance — an appeal decision is generally due within 3 months (extendable).
• Arbitration — no fixed statutory limit; institutions set internal timelines and expedited procedures. A typical CIETAC or BAC case might run 4–12 months from constitution of the tribunal, depending on complexity.

How judgments are reached

Judgments are issued in writing and set out the facts, the evidence relied on, the court's findings, and the legal basis. There is no jury and no dissenting opinion published. Where the parties reach a settlement during proceedings, the court or tribunal can issue a mediation statement (调解书), which has the same enforcement force as a judgment and is frequently the cleanest end to a case.

Appeals in litigation

• Right of appeal — a first-instance judgment may be appealed to the next-higher court within 15 days; certain rulings within 10 days.
• Second instance is final — China operates a two-instance system (两审终审), so the second-instance judgment is final and immediately enforceable.
• Retrial (再审) — an extraordinary, limited remedy available on narrow grounds (new decisive evidence, procedural error, error of law, etc.), generally applied for within 6 months. It is not a routine third instance.

Arbitration awards are final

An arbitral award is final and binding, with no appeal on the merits. A party may only apply to the intermediate court to set aside (撤销) a domestic award on limited procedural or jurisdictional grounds — for example, no valid arbitration agreement, matters beyond the scope of arbitration, improper constitution of the tribunal, or violation of public policy. Applications to set aside must be made promptly (generally within 6 months of receipt of the award).

Default judgments and settlement

• Default judgment (缺席判决) — if the defendant fails to appear or respond, the court or tribunal may proceed and rule based on the evidence presented. Winning by default still requires you to prove your case with documents; it is not automatic.
• Settlement — parties may settle at any stage and request a mediation statement or withdrawal of the case. Settlement terms can be structured to make enforcement easier (e.g. instalments with acceleration clauses).

Costs

Judgments and awards normally allocate the court fees or arbitration fees, and may include an order that the losing party pay the prevailing party's reasonable attorneys' fees (though in practice the recoverable amount for legal fees is often partial and capped by local rules). Claim costs explicitly in your pleadings so they are preserved for the award.

What to do once you hold the decision

1. Check the deadline — for appeal, set-aside, or enforcement (generally a 2-year window to apply for enforcement).
2. Assess whether to appeal or accept — weigh the delay and cost of appeal against the realistic chance of reversal.
3. Move to enforcement — a decision you do not enforce is only paper; see Step 6.