How to Obtain a Preservation (freezing) Order in China, Step-by-step (2026 Update)

Understanding how to obtain a preservation order in China 2026 is critical for any creditor, in-house counsel or foreign claimant facing the risk that a counterparty will dissipate assets before a contract dispute reaches judgment or an arbitral award can be enforced. Property preservation, the Chinese-law equivalent of a freezing or Mareva injunction, allows a People’s Court to attach bank accounts, seize goods or restrict the transfer of real property on an urgent, often ex parte, basis. The procedure is governed by the Civil Procedure Law of the PRC and, since 1 March 2026, the revised Arbitration Law of the PRC, which materially expanded the routes through which arbitral parties can seek interim relief in China.

This guide sets out the eligibility requirements, step-by-step filing procedure, required documents, costs, key deadlines and common pitfalls, current as of July 2026.

Overview of the Preservation Order Process and Who It Applies To

A preservation order in China is a court-issued directive freezing or restricting specified assets so they remain available to satisfy a future judgment or arbitral award. The Civil Procedure Law provides three principal routes for obtaining interim relief:

• Pre-action (pre-litigation) preservation. A claimant who has not yet filed suit may apply to the People’s Court at the location of the respondent’s assets or domicile. This route is used where asset dissipation is imminent and formal proceedings have not yet been commenced.
• Preservation during court proceedings. Once a civil suit has been accepted by a court, either party may apply for property preservation at any time before judgment.
• Court-assisted arbitral preservation. Where a dispute falls under an arbitration agreement, the claimant applies to the People’s Court, either directly before filing arbitration (pre-arbitration preservation) or via the arbitral institution once proceedings are under way. This is the route most affected by the 2026 reforms.

The revised Arbitration Law, effective 1 March 2026, strengthened the mechanism by which arbitration commissions request, and courts provide, interim preservation measures, including in cross-border cases. Industry observers expect these changes to reduce the processing gap that previously made court-track preservation faster and more predictable than the arbitral route. For disputes involving shipping or trade finance, note that China’s maritime code provides additional arrest-specific preservation rules.

Eligibility and Prerequisites for the Asset Preservation Procedure

Who may apply, domestic and foreign parties

Any natural person, legal person or unincorporated organisation with a direct interest in a contractual claim may apply for preservation. Foreign claimants enjoy the same statutory right, but must satisfy additional evidence formalities: a notarised and legalised (or apostilled) Power of Attorney (POA) for Chinese counsel, identity documents authenticated through the claimant’s home-country embassy or consulate, and certified Chinese translations of all non-Chinese materials. Where a foreign company’s corporate registration or board resolution is required as proof of standing, these too must be notarised, legalised and translated before filing.

Standard judicial tests

The court evaluates three factors when deciding whether to grant a preservation order:

• Prima facie case. The applicant must demonstrate a credible underlying claim, typically through contracts, invoices, payment records and correspondence.
• Risk of asset dissipation or deterioration. Evidence that the respondent is transferring funds, disposing of property, or is at risk of insolvency strengthens the application materially.
• Proportionality. The scope of the preservation order should correspond to the value of the claim. Courts will not freeze assets grossly exceeding the amount in dispute.

Security and counter-security requirements

Under the Civil Procedure Law, the court may require the applicant to provide counter-security before granting an order, and in pre-action preservation, this requirement is near-universal. Counter-security takes the form of a cash deposit into a court-designated account or a bank guarantee, typically calculated as a percentage of the preservation amount. The percentage varies by court and city; early indications from major filing registries suggest ranges of 10–30 per cent for standard commercial claims. If the applicant cannot provide adequate security, the court may refuse to grant or may narrow the scope of the order. Applicants who secure assets that later prove unjustified may face liability for wrongful preservation, including damages payable to the respondent.

Step-by-Step Freezing Order Process in China

The table below summarises the end-to-end procedure. Each step is then explained in detail.

Step 1, Conduct case triage and collate evidence

Before any filing, counsel must assemble the evidence package that will support both the underlying claim and the urgency of preservation. The minimum evidence set includes: the contract(s) in dispute, payment and invoice records, correspondence showing the counterparty’s default or threatened default, and, critically, evidence of the specific assets to be preserved. Courts require precise asset identification: bank account numbers, the name and branch of the financial institution, real-property registration details, or vehicle registration numbers. Vague references to “the respondent’s assets in China” will be rejected. Where the claimant cannot independently locate assets, specialist asset-tracing investigators or counsel-led registry searches should be instructed.

In urgent cases, same-day preliminary asset traces through public corporate credit databases and the SAFE registration system can narrow the target.

Step 2, Choose the forum and prepare the filing

The claimant must decide whether to pursue court-track preservation or pre-arbitration preservation in China. The choice depends on whether the underlying contract contains an arbitration clause:

• No arbitration clause: apply directly to the People’s Court with jurisdiction, typically the Intermediate People’s Court at the location of the respondent’s domicile or the location of the assets.
• Arbitration clause present: the claimant may apply for pre-arbitration preservation at the competent court, then commence arbitration within the deadline set by the court order. Alternatively, once arbitration is under way, the arbitral institution may transmit a preservation request to the court under the revised Arbitration Law framework. This second route was streamlined by the 1 March 2026 amendments.

Counsel then drafts the preservation application (保全申请书) in Chinese, specifying: the identity of the parties, the nature and value of the claim, the specific assets targeted, and the reasons for urgency. For foreign claimants, the POA, identity documents and all supporting materials must be notarised, legalised or apostilled, and translated into Chinese before filing. For guidance on document service formalities, see how to serve court documents in China.

Step 3, File the preservation application at the competent court

The completed application bundle, application form, evidence, POA, identity documents, counter-security undertaking, is filed at the litigation preservation or enforcement division of the competent People’s Court. Filing is typically done in person at the court registry, although major courts in Beijing, Shanghai and Shenzhen increasingly accept electronic filing for preservation applications through their online litigation service platforms.

At filing, the court registry will:

1. Check the application for completeness and assign a case number.
2. Confirm whether counter-security is required and, if so, the amount and form.
3. Route the application to the assigned judge or panel for review.

For emergency applications, those asserting imminent risk of asset dissipation, the assigned judge must review and rule within 48 hours of acceptance. Where counter-security is ordered, the applicant must deposit the required amount before the court will execute the order. Delays in depositing security are the single most common reason urgent preservation orders stall.

Step 4, Emergency (ex parte) preservation order and execution

Property preservation in China is overwhelmingly granted on an ex parte basis. The respondent is typically not notified before the order is made and executed. Once the judge approves the application, the court issues a preservation ruling (保全裁定) and simultaneously dispatches execution notices to the relevant custodians, banks, land registries, vehicle registration authorities or securities depositories.

Banks receiving a court preservation notice are required to freeze the designated accounts immediately. Real-property registries will register a restriction against the title. The practical effect is that the respondent cannot transfer, withdraw or encumber the preserved assets for the duration of the order. The respondent is notified of the preservation only after execution, at which point it may apply for reconsideration or seek release of the order.

Step 5, Convert preservation to enforcement, extend or release the order

A preservation order is not permanent. Pre-action preservation orders require the applicant to commence substantive proceedings, either by filing a lawsuit or initiating arbitration, within the time limit specified by the court (commonly 30 days, though courts may set different periods). Failure to commence proceedings within this window will result in automatic release of the preservation.

Once a final judgment or arbitral award is obtained, the claimant applies to convert the preservation into enforcement execution. The preserved assets are then applied toward satisfaction of the award. If the underlying proceedings are ongoing but the initial preservation term is expiring, the claimant must apply for renewal before expiry, renewal is not automatic. Where the claim fails or is withdrawn, the court lifts the preservation and the respondent may claim damages for wrongful preservation against the counter-security.

Documents Needed for a Freezing Order in China

The following table lists every document typically required for a preservation application. Foreign claimants should allow additional time for notarisation, legalisation/apostille and certified translation.

Pre-filing checklist for foreign claimants:

• Confirm all non-Chinese documents carry certified Chinese translations prepared by a qualified translator.
• Verify that notarisation and legalisation/apostille requirements have been satisfied for POA and identity documents, requirements differ by country.
• Include at least two to three locally filed supporting exhibits (e.g., company credit report from the National Enterprise Credit Information Publicity System, bank account verification).
• Prepare counter-security funds in advance, deposit arrangements can take several business days for foreign-currency transfers.

Organisations subject to cross-border data obligations should also consider whether the evidence package involves personal data transfers. For guidance on this issue, see cross-border data transfer rules in China and China’s data breach notification requirements.

Preservation Order Timeline and Key Deadlines

The following deadlines govern the lifecycle of a preservation order in China. Missing any of them can result in the order lapsing or the applicant facing liability.

Where the underlying dispute is resolved through arbitration, the overall timeline to final award varies depending on the arbitral institution’s rules. Under CIETAC standard procedures, proceedings typically conclude within 6 to 12 months; fast-track procedures may take 3 to 6 months. Court litigation for commercial disputes at Intermediate People’s Court level generally takes 6 to 18 months to first-instance judgment. During this period, the preservation must remain in force through timely renewal applications.

Preservation Order Cost and Court Fees

All figures below are indicative and must be verified with local counsel and the specific court registry before filing. Fees vary by city, court level and the complexity of the application.

All fees and security amounts are case-specific. Instruct local counsel to verify applicable fees and prepare proof-of-payment documentation before filing. To find qualified contract dispute counsel in China, visit the Global Law Experts lawyer directory and filter by China and Contract Disputes.

What Changed in the Preservation Order Process in 2026

The revised Arbitration Law of the PRC, adopted by the Standing Committee of the National People’s Congress and effective from 1 March 2026, introduced several changes that directly affect the preservation order process for contract disputes.

Expanded court assistance for arbitral interim measures. The revised law formalised and streamlined the mechanism by which arbitral institutions submit preservation requests to the People’s Courts. Previously, the procedural routing between arbitral bodies and courts was uneven, some intermediate courts imposed additional evidence requirements or processing delays. The 2026 amendments established a standardised referral channel, reducing the discretionary variation between courts.

Cross-border preservation and mutual assistance. Building on the existing arrangement between Mainland courts and the Hong Kong SAR for mutual interim-measure assistance, administered through the CICC and SPC, the revised Arbitration Law extended clearer statutory footing for courts to accept preservation requests connected to foreign-seated arbitrations where assets are located in China. The likely practical effect will be greater consistency in how different intermediate courts handle these cross-border applications.

Reduced procedural uncertainty for foreign claimants. Related SPC implementing provisions issued in March and April 2026 clarified the evidence standards for urgency and risk of dissipation, bringing greater predictability for both domestic and foreign applicants. Early indications suggest that courts are processing arbitral-track preservation requests with timelines closer to those of direct court-track applications, a significant improvement on pre-2026 practice, where the arbitral route could add weeks of delay.

These reforms do not change the fundamental structure of the preservation process, the same Civil Procedure Law provisions continue to govern court-ordered property preservation. However, they materially improve the viability and speed of the arbitral route, which is particularly relevant for foreign claimants whose contracts typically contain arbitration clauses.

Common Pitfalls and How to Avoid Them

• Vague asset descriptions. Courts will reject applications that fail to identify specific assets. Provide exact bank account numbers, branch names, property registration numbers or equity holding details. Generic references to “the respondent’s assets” are insufficient.
• Missing or defective notarisation and legalisation. Foreign claimants frequently underestimate the documentary requirements. A POA that has been notarised but not legalised at the Chinese embassy (or apostilled, for Hague Convention countries) will be rejected at the registry. Start the notarisation process well before the intended filing date.
• Failure to budget for counter-security. Pre-action preservation almost always requires counter-security. If the claimant cannot deposit the required amount on the court’s timeline, the order will not be executed, even if the judge has already approved the application. Prepare funds in advance, including allowances for foreign-currency conversion delays.
• Choosing the wrong forum. Filing at the wrong court, for example, at a Basic People’s Court instead of the Intermediate People’s Court, or in a jurisdiction where neither the assets nor the respondent are located, results in rejection and the loss of critical time. Confirm jurisdictional rules with local counsel before filing.
• Missing the deadline to commence substantive proceedings. After pre-action preservation is granted, the applicant must file suit or commence arbitration within the period set by the court. Missing this deadline leads to automatic release of the preservation and possible damages liability.
• Failing to renew the preservation order on time. Bank account freezes, real-property restrictions and equity restrictions all have statutory maximum durations. The applicant must file renewal applications before each expiry, renewal is not automatic. Set calendar reminders for each expiry date and file renewals well in advance.
• Relying solely on the arbitral route without understanding timing. Even after the 2026 reforms, the court remains the only body with power to execute a preservation order. If the arbitral institution is slow to transmit the request, assets may be dissipated in the interim. Where urgency is extreme, consider filing a pre-arbitration preservation application directly with the court while simultaneously commencing arbitration.

Sources

1. National People’s Congress, Revised Arbitration Law of the PRC (effective 1 March 2026)
2. Supreme People’s Court (English), Civil Procedure Law of the PRC
3. Supreme People’s Court, Provisions on Property Preservation Cases
4. WIPO Lex, Arbitration Law of the PRC (legal text)
5. CICC / SPC, Arrangement on Mutual Interim Measure Assistance (Mainland–HKSAR)
6. ILO Natlex, Civil Procedure Law of the PRC (English translation)