Abstract
This chapter addresses the question how the concept of public policy has been applied by Chinese courts. It begins by describing the concept, its functions and salient features in the context of Chinese laws, regulations and judicial practice. The main body of the chapter examines in some detail the use, as well as misuse, of that concept in Chinese courts' endeavor to determine the applicable law in foreign-related civil or commercial cases. It finds that the concept of public policy poses some degree of uncertainty and danger, but it has thus far been seldom invoked by Chinese courts to exclude the application of a foreign or extraterritorial law. The Supreme People's Court has, particularly, taken steps to restrict the use of the concept for this purpose.
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