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PrivateInternationalLawinMainlandChina,TaiwanandEuropeEditedbyJürgenBasedowandKnutB.
PilerMohrSiebeckJürgenBasedowisDirectoroftheMaxPlanckInstituteforComparativeandInternationalPrivateLaw,ProfessorattheUniversityofHamburgandAssociateMemberoftheInstitutdedroitinternational.
KnutB.
PilerisSeniorResearchFellow(ChinaUnit)attheMaxPlanckInstituteforComparativeandInternationalPrivateLawinHamburgandLectureronChineselawattheUniversitiesofGttingenandCologne.
ISBN978-3-16-153356-3ISSN0543-0194(MaterialienzumauslndischenundinternationalenPrivatrecht)TheDeutscheNationalbibliothekliststhispublicationintheDeutscheNationalbiblio-graphie;detailedbibliographicdataareavailableontheInternetathttp://dnb.
dnb.
de.
2014byMohrSiebeckTübingen.
www.
mohr.
deThisbookmaynotbereproduced,inwholeorinpart,inanyform(beyondthatpermittedbycopyrightlaw)withoutthepublisher'swrittenpermission.
Thisappliesparticularlytoreproductions,translations,microfilmsandstorageandprocessinginelectronicsystems.
Thebookwasprintedonnon-agingpaperbyGulde-DruckinTübingenandboundbyGrobuchbindereiSpinnerinOttersweier.
PrintedinGermany.
ContentsAbbreviationsXIPart1:Jurisdiction,ChoiceofLawandtheRecognitionofForeignJudgmentsinRecentLegislationJinHUANGNewPerspectivesonPrivateInternationalLawinthePeople'sRepublicofChina.
3Rong-ChwanCHENJurisdiction,ChoiceofLawandtheRecognitionofForeignJudgmentsinTaiwan17StefaniaBARIATTIJurisdiction,ChoiceofLawandtheRecognitionofForeignJudgmentsinRecentEULegislation.
39Part2:SelectedProblemsofGeneralProvisionsWeizuoCHENSelectedProblemsofGeneralProvisionsinPrivateInternationalLaw:ThePRCPerspective.
51Rong-ChwanCHENGeneralProvisionsintheTaiwanesePrivateInternationalLawEnactment201065JürgenBASEDOWTheApplicationofForeignLaw–ComparativeRemarksonthePracticalSideofPrivateInternationalLaw85ContentsVIIIPart3:PropertyLawHuanfangDUTheChoiceofLawforPropertyRightsinMainlandChina:ProgressandImperfection.
101Yao-MingHSUPropertyLawinTaiwan.
119LouisD'AVOUTPropertyLawinEurope129Part4:ContractualObligationsQishengHERecentDevelopmentsofNewChinesePrivateInternationalLawWithRegardtoContracts.
157'DYLG-:WANGTheRevisionofTaiwan'sChoice-of-LawRulesinContracts181PedroA.
DEMIGUELASENSIOTheLawApplicabletoContractualObligations:TheRomeIRegulationinComparativePerspective.
191Part5:Non-ContractualObligationsGuoyongZOUTheLatestDevelopmentsinChina'sConflictsLawforNon-ContractualObligations223En-WeiLINNewPrivateInternationalLawLegislationinTaiwan:NegotiorumGestio,UnjustEnrichmentandTort.
241PeterArntNIELSENNon-ContractualObligationsintheEuropeanUnion:TheRomeIIRegulation.
255ContentsIXPart6:PersonalStatus(FamilyLawandSuccessionLaw)YujunGUOPersonalStatusinChinesePrivateInternationalLawReform265Hua-KaiTSAIRecentDevelopmentsinTaiwan'sPrivateInternationalLawonFamilyMatters.
281KatharinaBOELE-WOELKIInternationalPrivateLawinChinaandEurope:AComparisonofConflict-of-LawRulesRegardingFamilyandSuccessionLaw.
307Part7:CompanyLawTaoDUTheNewChineseConflict-of-LawRulesforLegalPersons:IstheMiddleWayFeasible331Wang-RuuTSENGInternationalPrivateLawinTaiwan–CompanyLaw.
349Marc-PhilippeWELLERCompaniesinPrivateInternationalLaw–AEuropeanandGermanPerspective363Part8:InternationalArbitrationSongLUChina–ADevelopingCountryintheFieldofInternationalArbitration383CarlosESPLUGUESMOTAInternationalCommercialArbitrationintheEUandthePRC:$7DOHRI7ZR&RQWLQHQWVRU/HJDO6\VWHPV.
405AnnexChinesePILAct2010.
439SPCPILInterpretation2012447TaiwanesePILAct2010.
453Contributors.
467TheChoiceofLawforPropertyRightsinMainlandChina:ProgressandImperfectionHuanfangDUI.
Introduction.
102II.
Choice-of-LawPrincipleonMovableandImmovablePropertyRights.
1041.
LexReiSitaeandtheDistinctionBetweenMovablesandImmovables.
104a)ThePrincipleofLexReiSitae104b)ClassificationandtheDistinctionBetweenMovablesandImmovables.
1052.
AcquisitionandLossofPropertyRights.
106a)TheNinthBook,theChinesePILAct2010(Draft)andtheChinesePILAct2010106b)PartyAutonomyIntroducedIntotheFieldofMovables1073.
FormalitiesofTransactionsRegardingPropertyRights.
107III.
ChoiceofLawforGoodsinTransitandMeansofTransportation.
1081.
GoodsinTransit.
1082.
MeansofTransportation109IV.
ChoiceofLawforSecuritiesandTrustProperty.
1111.
Securities.
111a)DistinctionBetweenaHolder'sOwnershipofSecuritiesandtheRightsEmbodiedinSuchSecurities.
112b)IndirectandDirectHoldingSystems.
1122.
TrustProperty.
114V.
Conclusion116ThispapertouchesuponthechoiceoflawinpropertyrightsinMainlandChinafromaperspectiveofitsprogressandimperfection.
Thepaperiscomposedoffiveparts,includingtheIntroduction.
PartIIdiscussesthechoice-of-lawprincipleonimmovablepropertyandgenerallymovableproperty.
PartIIIdealswiththechoiceoflawfortwokindsofspecialmovableproperty,goodsintransitandmeansoftransportation.
PartIVanalysesthechoiceoflawforothertwokindsofcommercialproperty,commercialsecuritiesandtrustproperty.
AndthelastPartprovidesabriefconclusion.
AnearlierversionofthispaperwasalreadypublishedinFrontiersofLawinChi-na,vol.
8,no.
1,pp.
124etseq.
(DOI10.
3868/s050-002-013-0005-4).
HuanfangDu102I.
IntroductionSincetheinitiationoftheprocessofreformandthe"opening-up"in1978,thefateofChinahaschanged.
Duringthelast35yearsthecountryhasachieveddevelopmentonanunprecedentedscale.
Thelast35yearshavealsoseenthedevelopmentofChina'slegalacademy,asaresultofwhichconsiderablymoreresearchandalargenumberofimprovedpracticeshavebeenpromoted,includingthedevelopmentofprivateinternationallaw.
China'sprivateinternationallawsystemhasbecomemorecompleteandeffective.
1Particularly,theLawofthePeople'sRepublicofChinaontheApplica-tionofLawstoForeign-relatedCivilRelations("ChinesePILAct2010")2wasadoptedatthe17thsessionoftheStandingCommitteeofthe11thNa-tionalPeople'sCongresson28October2010andcameintoforceon1April2011.
ItisanimportantpartofcivillawinChina,3andittooktheChineseprivateinternationallawacademiccircleandChineselawmakersmorethan20yearstoworktheChinesePILAct2010out.
4AsChina'sfirstcodeofconflictslaw,theChinesePILAct2010marksanimportantmilestoneinthelegislativehistoryofChineseprivateinternationallaw.
5Fromthispointforward,Chineseconflictruleshavetobecompiledto-getherinsteadofbeingscattered.
Sincethelastcentury,codificationofprivateinternationallawhasbeenontherise,inthecontextofwhichtheenactmentoftheChinesePILAct2010isofmuchsignificancenotonlytoChinaitselfbutalsotothosecountrieswhichhaveclosecivilrelationships1SeeHuiWANG,AReviewofChina'sPrivateInternationalLawDuringthe30-yearPeriodofReformandOpening-Up,in:AsiaLawInstituteWorkingPaperSeriesNo.
002,availableat.
2Seethetranslationinthisbook,pp.
439etseq.
3SeetheLawCommitteeoftheNationalPeople'sCongress,Reportonseveralim-portantissuesontheDraftstatuteontheLawofthePeople'sRepublicofChinaontheApplicationofLawstoForeign-relatedCivilRelations,28Aug2010,availableat.
4SeeXiangquanQI[溑],AnalysisaboutDisputes&SolutionsintheDraftoftheApplicationLawofCivilRegulationConcerningForeignContacts[彃岸劊弈刦嫯夤],in:FaxueZazhi[],vol.
30(2010),no.
2,p.
8.
5SeeJinHUANG[清弜],CreationandPerfectionofChina'sLawonApplicationofLawforForeign-relatedCivilRelations[彃ⅷ],in:ZhengfaLuntan[嫻],vol.
29(2011),no.
3,pp.
11et.
seq.
;YongpingXIAO[俗],AMilestoneinChina'sPrivateInternationalLawLegislation[斆愍],in:FaxueLuntan[嫻],vol.
26(2011),no.
2,pp.
44etseq.
PropertyLawinChina103withit.
6TheChinesePILAct2010indicatesthatChineseconflictslawhasbecomeindependentandsystematic.
Beforeitsenactment,China'sconflictrulesweremainlywrittenintoChapVIII,theGeneralPrinciplesofCivilLawofthePeople'sRepublicofChina,1986("GPCL"),andtheOpinionsoftheSupremePeople'sCourt(SPC)onSeveralIssuesconcerningtheImplementationoftheGeneralPrinciplesoftheCivilLawofthePeople'sRepublicofChina,1988("theSPCOpinions1988").
Additionally,therewerestillafewconflictrulesscattedinotherspecialareasoflaw,egmaritimelaw,civilaviationlaw,contractlawandadoptionlaw,andinseveraljudicialinterpretationdocu-mentspromulgatedbytheSPC.
7TheChinesePILAct2010consistsof52articlesarrangedinVIIIChap-ters,namely,GeneralProvisions(ChapterI),CivilSubjects(ChapterII),MarriageandFamily(ChapterIII),Inheritance(ChapterIV),PropertyRights(ChapterV),Creditors'Rights(ChapterVI),IntellectualPropertyRights(ChapterVII)andSupplementaryProvisions(ChapterVIII).
Intermsofsubstance,thoserulesmaybegroupedintothreeparts,compris-ingthegeneralrules,thespecificrulesandtheauxiliaryrules.
ChapterIGeneralProvisionsarethegeneralrules,involvingtheobjective(s)andpurpose(s)aswellasthefundamentalprinciplesoftheChinesePILAct2010,mandatoryoroverridingrules(loid'applicationimmediate),publicpolicy,identificationoftheapplicablelawofamulti-jurisdictionalcoun-try,prescription,qualification,renvoiandproofofforeignlaw.
ChaptersII–VIIconsistofthespecificchoice-of-lawrulesonspecificlegalissues,coveringcivilsubjects,marriageandfamily,inheritance,propertyrights,creditors'rights,andintellectualpropertyrights.
ChapterVIIISupplemen-taryProvisionsgovernstherelationshipoftheChinesePILAct2010withanyotherrelevantlawaswellasitsenforcement.
BeforetheChinesePILAct2010,theexistingChineselegislationcon-tainedonlyonearticledealingwiththelawgoverningtheownershipofimmovableproperty.
8Incomparison,ChapterV(PropertyRights)oftheChinesePILAct2010establishesarelativelyelaborateframeworktoregu-latethechoice-of-lawissuesassociatedwithvariouscategoriesofproper-ty,includingimmovables,movables,goodsintransit,commercialsecuri-6SeePierreA.
KARRER,HighTideofPrivateInternationalLawCodification,in:JournalofBusinessLaw,vol.
1(1990),pp.
78etseq.
;DepeiHAN[未],CurrentIssuesofPrivateInternationalLaw[斆支柙嫻],Wuhan2004,pp.
3etseq.
7SeeJinHUANG[清弜](ed.
),PrivateInternationalLaw[斆],2nded.
,Beijing2005,pp.
120etseq.
8Article144oftheGeneralPrinciples;seeYanhongSHE[],OntheSubject-MattersofRealRightsinMovablesinPrivateInternationalLaw[嫻斆剄支柙],in:WuhanDaxueXuebao(ZhexueShehuiKexueBan)[],vol.
57(2004),no.
1,pp.
92etseq.
HuanfangDu104tiesandpledgesofaright.
Generalspeaking,thechoice-of-lawrulesforforeign-relatedpropertyrightsareconsistentwithrelevantinternationallegislationasfaraspossible,butatthesametime,therearesomedefectsinthelegislativeprovisionswhichshouldbeimproved.
9Theauthorhasbeeninvitedtoattendlegislation-relateddiscussionsorganizedbytheLeg-islativeAffairsCommissionoftheStandingCommitteeoftheNationalPeople'sCongressandtheChinaSocietyofPrivateInternationalLaw(CSPIL),andthereforehassomeremarksontheseprovisions.
Thispapertriestoconductalegalanalysisonthechoiceoflawinprop-ertyrightsinMainlandChina,fromaperspectiveofitsprogressandim-perfection.
Thepaperiscomposedoffiveparts,includingtheIntroduction.
PartIIdiscussesthechoice-of-lawprinciplesonimmovablepropertyandgeneralmovableproperty.
PartIIIdealswiththechoiceoflawfortwokindsofspecialmovableproperty,goodsintransitandmeansoftranspor-tation.
PartIVanalysesthechoiceoflawfortwootherkindsofspecialcommercialproperty,commercialsecuritiesandtrustproperty.
AndthelastPartprovidesabriefconclusion.
II.
Choice-of-LawPrincipleonMovableandImmovablePropertyRights1.
LexReiSitaeandtheDistinctionBetweenMovablesandImmovablesa)ThePrincipleofLexReiSitaeTheprincipleoflexreisitaeisdominantforimmovablepropertyinMain-landChina.
10BeforetheChinesePILAct2010,Article144oftheGeneralPrinciplesprovidedthattheownershipofimmovablepropertyshallbegovernedbythelawoftheplacewhereitissituated.
However,thisprovi-siondoesnotdrawadistinctionbetweenmovablesandimmovables,anditislimitedtoimmovableproperty,notincludingotherissuesinrelationtoimmovablesinconflictsrules.
Therefore,Article186oftheOpinions1988hasgivenanexpansiveanddetailedinterpretationwherebyland,buildingsandotherstructuresthatareattachedtolandandthingsattachedtobuild-9SeeYujunGUO[怮],ReflectionandPerfectionofChinesePrivateInternationalLawLegislation[斆],in:QinghuaFaxue[],vol.
5(2011),no.
5,pp.
162etseq.
10SeeJinHUANG(supranote7),p.
272;JinHUANG[清弜],RealRightIssuesunderthePrivateInternationalLaw[嫻斆支柙],in:FashangYanjiu[⒇],vol.
12(1995),no.
3,p.
51;ShuangyuanLI[],HuibinZHOU[廊]andJinhuiHUANG[咘],DifferenceinHarmonization:FurtherStudyonApplicationofLawinRealProp-ertyinChinesePrivateInternationalLaw[峌夂嫻弜斆彃支柙],in:ZhongguoFaxue[],vol.
29(2002),no.
1,pp.
138etseq.
PropertyLawinChina105ingsareimmovable.
Civilrelationshipssuchasthoseinvolvingthetitletoimmovableproperty,and[its]sale,pledgeorusearegovernedbythelawwheretheimmovablepropertyislocated.
IntheNinthBookoftheDraftoftheCivilCodeofthePeople'sRepub-licofChina,firstreadbythe67thsessionoftheStandingCommitteeofthe9thNationalPeople'sCongresson21December2002andtitledtheLawoftheApplicationofLawforForeign-relatedCivilRelations("theNinthBook"),11thedistinctionbetweenmovablesandimmovables12aswellasthecategory,contentandtheexerciseofpropertyrightsisgov-ernedbythelawoftheplacewherethepropertyislocated,providedthattheexerciseoftherightsinmovablepropertydoesnotviolatelexlociac-tus.
13Thelexreisitaedeterminestheownershipofimmovableproperty,14andtheeffectoftheregistrationofimmovablesisgovernedbythelawofregistration.
15Thelexreisitaealsogovernsthepropertyrightsacquiredbyabonafidepurchaser,thefinderoflostpropertyordriftingobjects,andthediscovererofatreasuretrove.
16b)ClassificationandtheDistinctionBetweenMovablesandImmovablesThesignificanceoftheclassificationprocessliesinthefactthattheasser-tionthatanassetismovableorimmovableisashorthandformofassertingthatanumberoflegalpropositionsshouldbeappliedtotheoneortheother;ithasnobearingupontherealnatureofthething.
Thedistinctionbetweenmovablepropertyandimmovablepropertyisnotmerelyamatteroffact;rather,theforummustengageinaprocessoflegalcharacterizationofthepropertyinquestion.
17Indecidingwhatlawgovernsthecharacterization,thequestioniswhetherthecourtshouldresorttoitsowndomesticlaw,thelawoftheforum,ortothelawofthesitus,i.
e.
thelawofthecountrywherethepropertyissituated,inordertoascertainthenatureofthepropertyinquestion.
Prevailinglegalopinionrightlyadoptsthesecondsolution.
1811ThetextoftheNinthBookisavailableat.
12Article30oftheNinthBook.
13Article32oftheNinthBook.
14Article31oftheNinthBook.
15Article34oftheNinthBook.
16Article48oftheNinthBook.
17SeePierreA.
LALIVE,TheTransferofChattelsintheConflictofLaws:ACom-parativeStudy,Oxford1955,pp.
14etseq.
;JaneenM.
CARRUTHERS,TheTransferofPropertyintheConflictofLaws:ChoiceofLawRulesConcerningInterVivosTransfersofProperty,NewYork2005,pp.
16etseq.
18SeeArthurH.
F.
ROBERTSON,CharacterizationintheConflictofLaws,Cambridge1940,pp.
191etseq.
;ErnstRABEL,TheConflictofLaws:AComparativeStudy,vol.
1,2nded.
,Michigan1958,p.
15.
HuanfangDu106BeforetheChinesePILAct2010,Article42ofthe2010ProposedDraftofLawoftheApplicationofLawforForeign-relatedCivilRelationsofthePeople'sRepublicofChinadraftedbytheCSPIL,("ChinesePILAct2010(Draft)"),stipulatedthattheclassificationofpropertyaseithermovableorimmovableisgovernedbythelawoftheplacewherethepropertyislocat-ed;thisapproachis,however,notadoptedintheChinesePILAct2010.
AccordingtoArticle8oftheChinesePILAct2010,theclassificationofforeign-relatedcivilrelationsisgovernedbythelawoftheforum,whichisalsoapplicablefortheclassificationofproperty.
Thedistinctionbetweenmovableandimmovablepropertyisrelevanttotheapplicationofchoice-of-lawrules.
19Article36oftheChinesePILAct2010saysthatpropertyrightsinimmovablesaregovernedbythelawoftheplacewheretheimmovablepropertyislocated.
However,thepartiesmaybyagreementchoosethelawapplicabletotherightsinmovableproperty.
Absentanychoicebytheparties,thelawoftheplacewherethepropertyislocatedwhenthelegalfactoccursshallbeapplied(Article37oftheChinesePILAct2010).
2.
AcquisitionandLossofPropertyRightsa)TheNinthBook,theChinesePILAct2010(Draft)andtheChinesePILAct2010BeforetheChinesePILAct2010,Article33oftheNinthBookcontainedageneralchoice-of-lawrulegoverningtheacquisitionandthelossofpropertyrights.
AccordingtoArticle33,theacquisitionandthelossofpropertyrightsshallbegovernedbythelawofplaceinwhichthepropertyissituatedwhenitsacquisitionorlossoccurs.
TheChinesePILAct2010(Draft)regulatestheacquisitionandthelossofpropertyrightsinmovables.
Propertyrightsinmovablesaregovernedbythelawoftheplaceinwhichthemovableassetissituatedwhenitsac-quisition,alteration,assignmentorlossoccurs.
20However,theChinesePILAct2010doesnotdistinguishbetweentheexistenceandeffectsofpropertyrightsandtheacquisitionandthelossofsuchrights.
Itmeansthattheacquisitionandthelossofpropertyrightsinimmovablesandmovablesarealsoregulatedby,respectively,Article36andArticle37oftheChinesePILAct2010.
19SeeHouchunZHOU[],OntheNewDevelopmentofRealRightConflictLawinContemporaryTimes[⌒],in:HebeiFaxue[],vol.
30(2012),no.
5,p.
82.
20Article44(1)oftheChinesePILAct2010(Draft).
PropertyLawinChina107b)PartyAutonomyIntroducedIntotheFieldofMovablesOneofthemoststrikingfeaturesofArticle37isthatpartyautonomyhasbeenintroducedforthefirsttimeinthefieldofmovableproperty.
Alt-houghthePRCisnotthefirstcountrytoincorporatepartyautonomyinthefieldofmovables,21itissubmittedthatsuchaliberalapproachmaygotoofar.
22Incontrast,althoughSwitzerlandwaswithitsFederalCodeonPrivateInternationalLawof1987("theSwissLDIP")thefirstcountrytoadoptpartyautonomyinthefieldofmovables,ittakesamorerestrictiveap-proachandspellsoutthelimitsoftheparties'choice.
23First,thepartiescanonlychoose"thelawoftheStateofshipment,ortheStateofdestina-tionorthelawapplicabletotheunderlyinglegaltransaction";24inotherwordsthepartiescannotchoosealawthathasnosubstantialrelationshipwiththepropertywhichisthebasisoftheunderlyinglegaltransaction.
Second,theSwissLDIPlimitspartyautonomytotheissuesofacquisitionandlossofpropertyrightsinmovables,andinsodoingspecifiesthattheextentandtheexerciseofinterestsinmovablepropertyshallbegovernedbythelexreisitae.
25Third,theSwissLDIPstatesunambiguouslythatthechoiceoflawshallnotbeappliedagainstathirdparty.
26TheSwissLDIPapproachisfavouredbythisauthor,insomuchasthosenecessarylimitsconstitutethereasonablebasisforachoiceoflawandcanpreventpartyautonomyfrombeingmisusedinpractice.
Inthislight,itissubmittedthatArticle37needstobelimitedandimprovedinafutureju-dicialinterpretation.
3.
FormalitiesofTransactionsRegardingPropertyRightsTheChinesePILAct2010(Draft)saysthattheformofthejuridicalactisgovernedbythelexlociactusorthelawapplicabletothejuridicalactit-21SeeHouchunZHOU[](supranote19),p.
83.
22SeeZhengxinHUO,HighlightsofChina'sNewPrivateInternationalLawAct:FromthePerspectiveofComparativeLaw,in:RevueJuridiqueThemis,vol.
45(2011),no.
3,p.
669;TaoDU[],CommentsonActofthePeople'sRepublicofChinaonApplicationofLawinCivilRelationswithForeignContracts[彃愋嬅],Beijing2011,pp.
246etseq.
;WeizuoCHEN[斉],ModernizationofChinaLegislationonPrivateInternationalLaw[斆],in:QinghuaFaxue[],vol.
5,no.
2(2001),p.
105;Cf.
HouchunZHOU(supranote19),p.
85;XiaoSONG[],PartyAutonomyandConflictofLawsinRealProperty[ぐ儫],in:HuanqiuFalvPinglun[嬅嫻],vol.
33(2012),no.
5,pp.
77etseq.
23SeeWeizuoCHEN[斉],StudyonSwitzerland'sFederalCodeonPrivateInter-nationalLaw[斆],Beijing1998,pp.
155etseq.
24Article104(1)oftheSPIL.
25Articles102(2),104(1)oftheSPIL.
26Article104(2)oftheSPIL.
HuanfangDu108self.
Theantecedentshallnotapplytothecreationanddisposalofpropertyrights,andotherlegalrightsneedtoberegistered.
27However,theChinesePILAct2010doesnotadoptit.
Althoughtherearenospecialprovisionsgoverningtheformalitiesoftransactionswhichdirectlycreate,transferorextinguishpropertyrights,thelexreisitaealsogovernstheformalitiesoftransactionswhichdirectlycreate,transferorextinguishsuchrightsinimmovableproperty.
28Accord-ingtoArticle186oftheSPCOpinions1988,civilrelationshipssuchasthoseinvolvingthetitletoimmovableproperty,and[its]sale,pledge,orusearegovernedbythelawwheretheimmovableislocated.
Therefore,theprincipleoflocusregitactumdoesnotapplytosuchtransactionsinimmovables.
Astopropertyrightsinmovables,thepartiesmaybyagreementchoosethelawapplicabletotheformalitiesoftransactionswhichdirectlycreate,transferorextinguishsuchrights.
Absentanychoicebytheparties,thelawoftheplacewherethepropertyislocatedwhenthelegalfactoccursshallbeapplied.
29Intheory,thechoiceoflawshallnotbeappliedagainstathirdparty.
III.
ChoiceofLawforGoodsinTransitandMeansofTransportation1.
GoodsinTransitGoodsintransit(resintransitu)havethefeaturethattheirlocationsarenotfixed.
Generallyspeaking,therearethreepotentialsites:thesiteoforigin,thesiteofdestinationandthesiteoftransit.
Differentcountrieshavedifferentoptionsbasedondifferentconsiderations.
3027Article26oftheChinesePILAct2010(Draft).
28SeeHenriBATIFFOL[Ⅺ弫],GuojiSifaGelun[斆嫻](Droitinterna-tionalprivé),trans.
byMinruChenZENG[斉],Taibei1974,p.
209;YanfengL[],LegalConflictsofRighttoaPropertyandApplicationofPrincipleoftheLawofthePlaceWhereaPropertyisSituated[彃],in:HenanShifanDaxueXuebao[剄],vol.
33(2006),no.
4,p.
101.
29Article37oftheChinesePILAct2010.
30SeeYongpingXIAO[俗],OnLegalApplicationConcerningSomeSpecialCat-egoriesofMovables[嫻℡彃],in:ZhengzhiYuFalv[],vol.
12,no.
1(1994),p.
45;XiaohongHU[倢],OnApplicationoftheLawovertheForeignMoveablesRealRight[嫻彃],in:LanzhouDaxueXuebao(ShehuiKexueBan)[澠澡],vol.
22(1994),no.
2,p.
36;ZhihuiHE[エ],ApplicationoftheLawovertheForeignMoveablesRealRight[嫻彃],in:XiandaiFaxue[],2000,no.
4,p.
84.
PropertyLawinChina109Article36oftheNinthBookprovidesthatpropertyrightsinmovablesintransitaregovernedbythelawofthedestinationoftransportation.
TheChinesePILAct2010(Draft)alsoadoptsthisprovision.
31Ithinkthattheuseofthelawofdestinationismoreconducivetoprotectingtheinterestsofbuyers.
32Article38oftheChinesePILAct2010saysthatthepartiesmaybyagreementchoosethelawapplicabletothetransferofthepropertyrightsinmovableswhichareintransit.
Absentanychoicebytheparties,thelawofthedestinationoftransportationshallbeapplied.
SowecanseethattheChinesePILAct2010introducespartyautonomyastheprimarychoice-of-lawruleforgoodsintransit.
Forsimilarreasonstothoseoutlinedabove,itissuggestedthatcertainlimitsontheparties'choiceshouldbeimposed.
2.
MeansofTransportationTheChinesePILAct2010doesnotprovideanyarticleregulatingthelawgoverningthemeansoftransportation.
ThisismainlybecausetheMari-timeLawofthePeople'sRepublicofChina,1992("theMaritimeLaw)andtheCivilAviationLawofthePeople'sRepublicofChina,1995("theCivilAviationLaw")containsucharticles.
TheMaritimeLawandtheCivilAviationLawstipulateblack-letterchoice-of-lawrulesforthemeansoftransportation,i.
e.
forshipsandaircraftsrespectively.
33TheMaritimeLaw,whichwasadoptedatthe28thsessionoftheStand-ingCommitteeofthe7thNationalPeople'sCongresson7November1992andtookeffecton1July1993,containsachapter,titledChapterXIVLawsApplicabletoRelationsInvolvingForeignElements,whichlaysdown9articles(Articles268to276)ontheapplicationoflawinrelationtomari-timemattersinvolvingforeignelements.
34Amongthesearticles,Arti-cle268(internationaltreatiesandcustoms),Article269(contractofship)andArticle276(publicorder)areinfactcopiesof,respectively,Arti-cle142,Article145andArticle150oftheGPCL.
Theotherarticlesarespecificallydevotedtosuchissuesasownershipofships,mortgageofships,maritimeliens,maritimetorts,generalaverageandlimitationoflia-bilityformaritimeclaims.
35Theapplicablelawtheyspecifyisasfollows:31Article44(2)oftheChinesePILAct2010(Draft).
32SeeYongpingXIAO[俗](supranote30),p.
45.
33SeeYongpingXIAO[俗](supranote30),p.
46;ZhihuiHE[エ](suprano-te30),p.
85.
34SeeYongpingXIAO[俗],TheMaritimeActofthePeople'sRepublicofChinaandItsDevelopmentonConflictofLaws[⒇⌒],in:FaxueZazhi[],vol.
24(1994),no.
2,p.
14.
35Ibid.
HuanfangDu110(a)Acquisition,transferandextinctionoftheownershipoftheship.
Thelawoftheflagstateoftheshipshallapply.
36(b)Mortgageoftheship.
Thelawoftheflagstateoftheshipshallap-ply.
However,ifthemortgageisestablishedbeforeorduringitsbareboatcharterperiod,thenthelawoftheoriginalcountryofregistryoftheshipshallapply.
37(c)Matterspertainingtomaritimeliens.
Thelawoftheforumshallap-ply.
38(d)Claimsfordamagesarisingfromacollisionofships.
Thelawoftheplacewheretheinfringingactiscommittedshallapply.
Ifdamagesarisefromacollisionofshipsonthehighsea,thelawoftheforumhearingthecaseshallapply.
However,ifthecollidingshipsbelongtothesamecoun-try,nomatterwherethecollisionoccurs,thelawoftheflagstateshallap-ply.
39(e)Adjustmentofgeneralaverage.
Thelawwheretheadjustmentofgeneralaverageismadeshallapply.
40(f)Limitationofliabilityformaritimeclaims.
Thelawoftheforumshallapply.
41TheCivilAviationLaw,whichwasadoptedatthe16thSessionoftheStandingCommitteeofthe8thNationalPeople'sCongresson30October1995andwhichenteredintoforceon1March1996,alsoestablishedachapter,titledChapterXIVLawsApplicabletoRelationsInvolvingFor-eignElements,consistingof7articlesprovidingchoice-of-lawrules.
AmongthemArticle184(internationaltreatiesandcustoms),Article188(contractofship)andArticle190(publicorder)areasamatterofcontentsimplytherepetitionofArticle142,Article145andArticle150oftheGeneralPrinciples1986.
TheotherarticlesbearmanysimilaritieswiththerelevantprovisionsoftheMaritimeLaw.
Article185,Article186andArti-cle187adoptthesameconnectingfactorsasthoseofArticle270,Arti-cle271(1)andArticle272oftheMaritimeLawindealingwithsimilaris-sues.
Article185andArticle186oftheCivilAviationLawprovidethatthelawoftheplaceofregistryofthecivilaircraftshallapplytotheacquisi-tion,transferandextinctionoftheownershipofthecivilaircraftandthemortgageofthecivilaircraft,whileArticle187statesthatliensoncivilaircraftshallbegovernedbythelawoftheforum.
Article189setsupthe36Article270oftheMaritimeLaw.
37Article271oftheMaritimeLaw.
38Article272oftheMaritimeLaw.
39Article273oftheMaritimeLaw.
40Article274oftheMaritimeLaw.
41Article275oftheMaritimeLaw.
PropertyLawinChina111conflictsrulesontortsarisingfromcivilaircraft,whichalsohasmuchincommonwithArticle273(1),(2)oftheMaritimeLaw.
Itreadsthatthelawoftheplacewheretheinfringingactiscommittedshallapplytoclaimsfordamagesinflictedonathirdpartyonthegroundbycivilaircraft;thelawoftheforumhearingthecaseshallapplytoclaimsfordamagesinflictedonathirdpartyonthesurfaceofthehighseabycivilaircraft.
42Generallyspeaking,black-letterchoice-of-lawrulesforshipsandair-craftsintheMaritimeLawandtheCivilAviationLawkeeppacewithde-velopmentsinthetransportbusiness.
Butfromasystematicpointofview,theserulesshouldbeincorporatedintotheChinesePILAct2010.
Inaddi-tion,thereisnoruleregardingthetransportationofcars.
IV.
ChoiceofLawforSecuritiesandTrustProperty1.
SecuritiesAsecurityindicatesaninterestbasedonaninvestmentinacommonenter-priseratherthandirectparticipationintheenterprise.
Underanimportantstatutorydefinition,asecurityisanyinterestorinstrumentrelatingtofi-nances,includinganote,stock,treasurystock,bond,debenture,evidenceofindebtedness,certificateofinterestorparticipationinaprofit-sharingagreement,collateraltrustcertificate,preorganizationcertificateorsub-scription,transferableshare,investmentcontract,votingtrustcertificate,certificateofdepositforasecurity,orcertificateofinterestorparticipationin,temporaryorinterimcertificatefor,receiptfor,guaranteeof,orwarrantorrighttosubscribetoorpurchaseanyofthesethings.
Asecurityalsoincludesanyput,call,straddle,option,orprivilegeonanysecurity,certifi-cateofdeposit,grouporindexofsecurities,oranysuchdeviceenteredintoonanationalsecuritiesexchange,relatingtoforeigncurrency.
43TheChinesePILAct2010firstprovidesachoice-of-lawruleforcom-mercialsecurities,underwhichsuchsecuritiesshallbegovernedbythelawoftheplacewheretherightsaretobeexercisedorbythelawwhichismostcloselyconnectedwiththesecurities(Article39).
Therearetwopoints,interalia,whichareworthyofdiscussion.
42SeeYanpingLIN[],ApplicationofLawforCivilAircraftTortandInfluenceofMontrealConventiononChina[八彃叚Ⅺ],in:HuadongZhengfaDaxueXuebao[],vol.
8(2006),no.
6,p.
83.
43SeeBryanA.
GARNER,Black'sLawDictionary,8thed.
,St.
Paul2004,pp.
1384etseq.
HuanfangDu112a)DistinctionBetweenaHolder'sOwnershipofSecuritiesandtheRightsEmbodiedinSuchSecuritiesFromthewordingofthisarticle,itishardtoidentifywhethersecuritiesreferstotherightsembodiedinsuchsecuritiesorthesecuritiesassuchintheformofpiecesofpaper.
Therearetwodifferentkindsofrightsinsecu-rities:oneistheholder'sownershipofsecuritiesandanothertherightsembodiedinsuchsecurities,usuallycalledstockrights.
Therefore,asre-gardsthelawapplicabletosecurities,itisalsonecessarytodistinguishthesetwokindsofrights.
44Astotheownershipofsecuritiesitself,suchaspossession,controlandmortgagerights,itshallbegovernedbythelawapplicabletothepropertyrightinsecurities.
Thegeneralapplicationoflawisthelawwherethesecu-rityisseatedorthelawofthecountrywherethesecuritiescanusuallybefound.
Thescopeofthelawapplicabletosuchrightsofsecuritiesincludes:ownershipofthesecurityitselfandthemortgagerightofsecurities,condi-tionsandeffectivenessofsecuritiestransfer,therelationshipbetweensecu-ritiesholdersandathirdperson,themortgage-backedsecurities,etc.
Astotherightsembodiedinsuchsecurities,theyshallbegovernedbythelawapplicabletothesecuritiesrightthatdominatestherelatedlegalrelationofsecurities.
Thescopeofthelawapplicabletostockrightsin-cludes:whetherawrittencertificateisasecurity,whatkindofsecuritiesareatissueandhowtoenforcetherightsofsecurities.
45Forexample,InvestorXbuyssomestocksissuedbyaGermanycompanyinHamburgandthentakesthestocksandgoesbacktoChinaandtransfersthestockstoInvestorYinBeijing.
ItisobviousthatthetransferofownershipofthestocksshallbegovernedbyChina'slaw,wherethestocksaresituated,basedonthetransferconductthatoccurs(lexreisitae),butwhetherYcanenjoyanden-forceshareholders'rightsintheGermanycompanyafterheholdsthestocksshouldbegovernedbyGermanlawasthepersonallawofthecompany.
b)IndirectandDirectHoldingSystemsArticle39isappliedonlytoadirectholdingsystem.
Thetraditionalrulefordeterminingtheenforceabilityofatransferofpropertyaffectedinadirectholdingsystemisthelexreisitae,morespecificallyreferredtoasthelexcartaesitaeinthecontextofsecurities.
Underthisrule,theeffec-tivenessofatransferofsecuritiesisdeterminedbythelawoftheplacewherethesecuritiesarelocatedatthetimeofthetransfer.
Inthecaseof44SeeJinHUANG[清弜](ed.
),ProposedDraftoftheLawoftheApplicationofLawforForeign-relatedCivilRelationsofthePeople'sRepublicofChinaandItsExplanation[彃嫯嬵],Beijing2011,p.
81.
45Ibid.
PropertyLawinChina113bearersecurities(i.
e.
securitieswhicharerepresentedsolelybyphysicalcertificates,whoseowner'snameisnotregisteredorrecordedintheregis-teroftheissuer,andwhicharepayabletoitsholderorpresenter),thisistakentobethelawoftheplaceofthecertificatesrepresentingthesecuri-tiesatthetimeofthetransfer.
Inthecaseofregisteredsecurities,thelexreisitaeistakentobeeitherthelawoftheplaceoftheissuer'sincorpora-tionororganizationorthelawoftheplacewheretheregisterismaintained(whetherbytheissueritselforbyaregistraronbehalfoftheissuer)atthetimeofthetransfer.
Thesetraditionalapproacheshavegenerallyproducedasatisfactoryre-sultinrelationtodirectlyheldsecurities.
Theseapproachesare,however,unsatisfactoryinrelationtointerestsinsecuritiesheldwithanintermedi-ary,astheyrequire,forthepurposesofdeterminingtheapplicablelaw,lookingthroughtiersofintermediariestotheleveloftheissuer,registeroractualcertificates("thelook-throughapproach").
Sufficeittosay,inthecontextofsecuritiesheldwithoneormoreintermediaries,thelook-throughapproachmaynotbepossibleatalland,evenwhenpossible,maygiverisetoseveredifficulties.
46Withthedevelopmentofcross-borderfinancingandthegrowthofin-ternationalsecuritiesheldwithanintermediary,thelawapplicabletosecu-ritiesheldwithanintermediaryandthesafetyoftherelevantpartiesinthecross-bordertransactionhaveattractedincreasingattentioninthefieldofprivateinternationallaw.
Takingintoaccountthespecializednatureofinternationalsecuritiesheldwithanintermediary,moreandmorescholarsprefertoadoptthe"placeofrelevantintermediaryapproach"(PRIMA)ratherthanaccepttheplaceofsecuritiesapproach(lexcartaesitae)fordecidingtheapplicablelawissue.
47On5July2006,theHagueConventionontheLawApplicabletoCertainRightsinRespectofSecuritiesHeldwithanIntermediary("theHagueSe-curitiesConvention")wasconcludedbytheHagueConferenceonPrivateInternationalLaw.
48ThebasicpurposeoftheHagueSecuritiesConventionistounifytheconflictrulesforsecuritiesheldwithanintermediary,en-46SeeChristopheBERNASCONI,TheHagueConventionof5July2006ontheLawApplicabletoCertainRightsinRespectofSecuritiesheldwithanIntermediary,SeminaronCurrentDevelopmentsinMonetaryandFinancialLawWashington,D.
C.
,23–27Oc-tober2006,availableat.
47SeeYingxiaSU[刐柗晟],BaoshiWANG[厇勴],OnthePrincipleoftheApplicableLawtotheMortgageofInternationalSecurities:aCommentaryontheConventionontheLawApplicabletotheCertainRightsinRespectofSecuritiesHeldWithanIntermediary[斆嬂ⅹ彃嬅嬂ⅹ刦Ⅺ彃],in:ShidaiFaxue[],vol.
3(2005),no.
1,p.
81.
48ThetextoftheHagueSecuritiesConventionisavailableat.
HuanfangDu114hancetheanticipationorstabilityintheapplicationoflaw,andpromotingthedevelopmentofcross-bordersecuritiestransactions.
49TheimportantcontributionoftheHagueSecuritiesConventionconsistsinexplicitlyac-ceptingthePRIMAasamethodfordeterminingtheplacewheresecuritiesarelocated.
SotheHagueSecuritiesConventionwillhaveafar-reachinginfluenceinthelawapplicabletoincorporealandcorporealproperty.
50Combinedwithpartyautonomy,theformerPRIMAapproachcannotonlyprotecttheinterestsofrelevantparties,itcanalsopaymoreattentiontotheholders,whichisacknowledgedbytheHagueSecuritiesConven-tion.
ThelawapplicabletoalltheissuesspecifiedinrespectofsecuritiesheldwithanintermediaryisthelawinforceintheStateexpresslyagreedintheaccountagreementastheStatewhoselawgovernstheaccountagreementor,iftheaccountagreementexpresslyprovidesthatanotherlawisapplicabletoallsuchissues,thatotherlaw.
51AsforChina,onemaysubmitthatthelackofchoice-of-lawrulesforthistypeofsecuritiesim-pliesthehighpossibilityofChina'saccessiontotheConventioninfu-ture.
52Certainly,theSPCmaypromulgateajudicialinterpretationaccord-ingtojudicialpracticebeforeChina'saccessiontotheConvention.
2.
TrustPropertyItisimpossibletoframeaprecisedefinitionofatrust,which,unlikeacompany,hasnolegalpersonality,butitispossibletoprovideadescrip-tionsufficienttoenableotherstoknowinageneralwaywhatoneiscon-cernedwith.
53AccordingtoArticle2oftheHagueConventionof1July1985ontheLawApplicabletoTrustsandontheirRecognition("theHagueTrust49SeeChristopheBERNASCONI,IndirectlyHeldSecurities:aNewVenturefortheHagueConferenceonPrivateInternationalLaw,in:YearbookofPrivateInternationalLaw,vol.
3(2001),p.
63;AntoonV.
M.
STRUYCKEN,ConventionontheLawApplicabletoCertainRightsinRespectofSecuritiesHeldwithanIntermediary,in:NetherlandsInternationalLawReview,vol.
1(2003),p.
103.
50SeeDanielGIRSBERGER,TheHagueConventiononIndirectlyHeldSecurities–Dynamicsofthemakingofamodernprivateinternationallawtreaty,in:TaliaEinhorn&KurtSiehr(eds.
),IntercontinentalCooperationThroughPrivateInternationalLaw:Es-saysinMemoryofPeterE.
Nygh,Cambridge2004,p.
139.
51Article4oftheHagueSecuritiesConvention.
52SeeYanhongSHE[],CommentsonHagueConventionontheLawApplica-bletoCertainRightsinRespectofSecuritiesHeldwithanIntermediary[丐攵嬂ⅹⅪ彃弱嬅],in:WudaGuojiFaPinglun[斆嬅嫻],vol.
2(2004),p.
258.
53SeeDavidJ.
HAYTONandOshleyRoyMARSHALL,CasesandCommentaryontheLawofTrusts,8thed.
,London1986,pp.
2etseq.
PropertyLawinChina115Convention"),54whichenteredintoforceasof1January1992,theterm"trust"referstothelegalrelationshipscreated–intervivosorondeath–byaperson,thesettlor,whenassetshavebeenplacedunderthecontrolofatrusteeforthebenefitofabeneficiaryorforaspecifiedpurpose.
Atrusthasthefollowingcharacteristics:(a)theassetsconstituteaseparatefundandarenotapartofthetrustee'sownestate;(b)titletothetrustassetsstandsinthenameofthetrusteeorinthenameofanotherpersononbehalfofthetrustee;(c)thetrusteehasthepowerandtheduty,inrespectofwhichheisaccountable,tomanage,employordisposeoftheassetsinaccordancewiththetermsofthetrustandthespecialdutiesimposeduponhimbylaw.
ThetrustwasanunknownlegalinstitutioninChinauntiltheenactmentoftheTrustLawofthePeople'sRepublicofChinain2001("theCTL").
55Priortoitsenactment,thepeople'scourtshadoncedealtwithaforeign-relatedcaseconcerningatrust,butduetothelackoftrustlawinChina,thereweregreatdivergencesbetweenthedifferentinstances.
TheHigherPeople'sCourtofGuangdongProvince,asthefirstinstance,characterizedtheissueasacaseconcerningagency.
ButwhenappealedtotheSupremePeople'sCourt,itwascharacterizedasacaseinvolvingatrust.
Moreover,theSupremePeople'sCourtappliedtheprincipleofgoodfaithintheCommonPrincipleswithoutananalysisofchoiceoflaw.
56ThoughtheCTLwasenactedin2001tosatisfytheeconomicdevelop-mentbeingwitnessedinChina,itcontainsnochoice-of-lawrulesontrustshavingforeignelements.
TherehavebeencallsinChinafortheratificationoftheHagueTrustConvention.
57Article42oftheNinthBookisare-sponsetosuchcallsanditisdraftedonthemodeloftheHagueTrustCon-vention.
58However,Article42isanoversimplificationoftheHagueCon-ventionsuchthatitwillgiverisetomanyuncertainties.
AccordingtoArti-cle42,atrustshallbegovernedbythelawexpresslychosenbythesettlorinthewrittendocumentcreatingthetrust.
Intheabsenceofsuchachoice54Generally,seetheveryusefulAlfredE.
vonOVERBECK,ExplanatoryReportonthe1985HagueTrustsConvention,in:theProceedingsoftheFifteenthSessionbythePer-manentBureauoftheHagueConference(1984),vol.
2,1985.
55SeeWeidongZHU,China'sCodificationoftheConflictofLaws,in:JournalofPrivateInternationalLaw,vol.
3(2008),p.
293.
56TMTTradingCo.
Ltd.
v.
GuangdongLightIndustrialProductsImport&Export(Group)Co[庼弜昇5.
5屹斑⒇嬊],in:ZhonghuaRenminGongheGuoZuigaoRenminFayuanGongbao[標斣),vol.
4(2000),pp.
130etseq.
57SeeYueminXI[],BriefCommentsonConflictofLawsinTrustinChina[嫻],in:ZhongguoShehuiKexueBao[],12June2006,p.
3.
58SeeAdairDYER,InternationalRecognitionandAdaptationofTrusts:TheInflu-enceoftheHagueConvention,in:VanderbiltJournalofTransnationalLaw,vol.
32(1999),pp.
997etseq.
HuanfangDu116orifthelawchosendoesnotprovidefortheconceptoftrust,itshallbegovernedbythelawwithwhichthetrustismostcloselyconnected,usual-lythelawofthesitusoftheassetsofthetrust,thelawoftheplaceoftheadministrationofthetrust,thelawoftheplaceofthetrustee'sresidenceorbusiness,orthelawoftheplacewheretheobjectsofthetrustaretobefulfilled.
59UnderArticle17oftheChinesePILAct2010,thepartiesmaybyagreementchoosethelawapplicabletotrust.
Absentanychoicebytheparties,thelawoftheplacewherethetrustassetislocatedorwherethetrustrelationisestablishedshallbeapplied.
Partyautonomyistheprimaryprincipleindeterminingthelawapplicabletotrusts,whichhasbeenwide-lyacceptedbynationallawsandinternationalconvention;60theChinesePILAct2010apparentlyadoptsthisprinciple.
Intheabsenceofachoicebythepartiesconcerned,theprincipleofthemostsignificantrelationshiphasbeenfirmlyestablishedasafundamentaltesttodeterminetheapplica-blelaw.
61However,theChinesePILAct2010failstoendorsethiswidelyacceptedapproachand,instead,providestwofixedconnectingfactors.
Giventhecomplexityofthedisputesarisingfromtrusts,itissubmittedthatsucharigidarrangementmaybeproblematic.
ItmeritsmentioningthattheprincipleofthemostsignificantrelationshipisadoptedintheChi-nesePILAct2010(Draft)fordeterminingthelawapplicabletoatrustintheabsenceofachoicebytheparties.
62Regrettably,suchaproposalwasrejectedbythelegislator.
V.
ConclusionTheChinesePILAct2010'senactmentendedChina'shistoryofhavingnospecific,unifiedlawonlawwhichisapplicableforforeign-relatedcivilrelations.
DepartingfromChina'sactualsituations,copingwithbothChi-na'sneedtoopenitselftotheworldandthecitizens'needtoengageinfur-59ThesameprovisionsarefoundalsoinArticle59oftheChinesePILAct2010(Draft).
60SeeAdairDYER(supranote58);DavidHAYTON,TheHagueConventionontheLawApplicabletoTrustsandonTheirRecognition,in:InternationalComparativeLawQuarterly,vol.
36(1987),pp.
1013etseq.
61SeeArticle7oftheHagueTrustConvention;MingXIAO[俗],ZhiweiDENG[忔],Foreign-relatedTrust:LegalConflictsandLawApplication[彃],in:FalüShiyong[彃],vol.
7(2002),no.
2,p.
41.
62SeeArticle59(2)oftheChinesePILAct2010(Draft);QiangLUO[亘],TheLimita-tionsofLexLociReiSitaeanditsCorrection[斑],in:HenanZhengfaGuanliGanbuXueyuanXuebao[怩斣],vol.
16(2006),no.
3,p.
135.
PropertyLawinChina117therforeign-relatedinteractions,learningfromChina'sexperienceinthelast30yearssincetheReformingandOpening,incorporatinginternational-lywide-spreadpractice,andfocusingontheapplicablelawissuesfromwhichforeign-relatedcivildisputesoftenarise,theopinionsofallpartiesregardingtheChinesePILAct2010arerelativelyconsistent:ItisanewfruitofChina'slegalsystemonforeign-relatedcivilrelationsandpromotestheestablishmentofthesocialistlegalsystemfeaturedinChina.
63Ofcourse,theChinesePILAct2010isnotperfectandstillhassomecontroversialpoints,defectsandregretsregardingthelawapplicableinpropertymatters.
First,theChinesePILAct2010isstillnotagenuinelyintegrated,systematic,comprehensiveandsophisticatedlawregardingthelawwhichisapplicableforforeign-relatedcivilrelationsasexistingrulesinspecialstatuteswhichdeterminetheapplicablelaw,suchastheMari-timeLawandtheCivilAviationLaw,havenotbeenincorporatedintoit.
Second,partyautonomyandaprincipleofchoice-of-lawwereintroducedforthefirsttimeinthefieldofmovablepropertyandmovablepropertyintransitu,butitwasdonesotooextensively.
Weshouldtakeparties'auton-omyinthefieldofpropertyrightsseriouslyandimposeappropriatelimits.
Third,thereisnoblack-letterchoice-of-lawruleforthetransportationofcars,culturalpropertyorothertypesofproperty.
Finally,withthegradualopeningupofChina'ssecuritiesmarket,itshouldtakeintoaccounttheindirectholdingsystemofsecurities.
63SeeJinHUANG[清弜](supranote5),p.
11.