Allegations that a $23 million judgment from a court in China was obtained by fraud led the New Zealand Court of Appeal to order a review before allowing enforcement in New Zealand.
Deming Shi has assets in New Zealand but lives in the Peoples Republic of China.
The Higher People’s Court of Hebei Province held him liable on a guarantee of debts owed a China state-owned enterprise by coal supplier Qinhuangdao Boen Trading Co Ltd.
These debts arose from the state-owned enterprise making advance payments for future coal deliveries; working capital for Boen Trading, enabling it to purchase coal stocks for later supply.
China has no reciprocal treaty with New Zealand for the enforcement of each country’s court judgments. Enforcement in New Zealand of the Hebei court judgment first required a New Zealand court to ‘recognise’ the validity of the overseas court ruling.
In 2021, the New Zealand High Court decided the China ruling was valid and enforceable in New Zealand. This followed a review of the manner and circumstances in which the Hebei court reached its decision.
Mr Shi appealed, claiming new evidence has come to light which shows he did not receive a fair hearing in China.
At the China hearing, the same legal counsel represented both Boen Trading as the debtor and himself as supposed guarantor.
Mr Shi claims the Hubei court was misled.
He did not guarantee payments due under a 2016 contract in dispute at the court hearing, Mr Shi says. He did guarantee payments due under previous contracts, but this personal guarantee was not rolled over into the disputed 2016 contract, he claims.
Mr Shi says has only recently been able to get a copy of the 2016 contract.
The Court of Appeal put on hold any enforcement of the $23 million judgment.
Mr Shi’s complaint was referred back to the High Court for an inquiry into whether the Hebei court was deceived.
Shi v. Hebei Huaneng Industrial Development Company Ltd – Court of Appeal (17.12.25)
26.057