Conflict of Laws: International Succession in China

Published on April 23, 2026 and written by Cyril Jarnias

In an increasingly globalized world, where families are international and assets are scattered across the globe, international inheritance law in China raises complex issues of conflict of laws.

Faced with the range of factors to consider, such as the nationality of heirs, location of assets, or legal differences between legal systems, understanding the Chinese legal framework becomes crucial to anticipate and effectively resolve inheritance disputes.

These issues highlight the need for international harmonization of inheritance rules, while respecting the cultural and legal specificities of each country, thus paving the way for exciting and current debates in this still largely unexplored legal field.

International Inheritance Law: Key Concepts and Legal Framework

Key Concepts of International Inheritance Law

• Connecting Factor Principle: This is the criterion used to determine the applicable law for an inheritance involving a foreign element (for example, death in a country other than that of nationality or residence, or assets located abroad). The principle predominantly adopted in Europe is that of the deceased’s habitual residence, unless an explicit choice is made for the national law in a will.
• Applicable Law: The law chosen according to the connecting factor principle governs all civil matters related to the inheritance (identification of heirs, inheritance rights, validity and interpretation of the will). Previous rules distinguished between movable property (law of the last domicile) and immovable property (law of the location). Since the European Succession Regulation (2015), a more uniform approach is favored.
• Jurisdictional Competence: This concerns the court competent to settle disputes related to an international inheritance. Generally, it is also the jurisdiction of the last habitual residence. The European Regulation thus promotes convergence between jurisdictional competence and applicable law.

International Legal Framework

• International inheritances are primarily governed by:
  • European Regulation No. 650/2012 on successions, which imposes as a general rule the application of the law of the last habitual residence. However, it allows the deceased to opt for their national law via a will.
  • The Hague Convention on the Conflicts of Laws Relating to the Form of Testamentary Dispositions aims to harmonize rules between signatory states.
  • Other bilateral conventions may exist depending on the countries involved.

Legal Framework	Dominant Principle	Possible Exception
EU / Regulation	Law of last residence	Voluntary choice by will
Hague Convention	Procedure harmonization	Respect for internal legislation

Alignment or Divergence with the Chinese Legal System

In China, domestic law does not always follow these international principles:

• China generally applies its own inheritance legislation to situations involving its nationals or assets located on its territory.
• In case of a foreign element, it often favors its own internal rules over those from international agreements; thus, there is a notable divergence with the European framework which favors unification through conventions.

For example:

If a Chinese citizen dies in France with real estate assets in China and France, each country will primarily apply its own laws. Thus:

• A French notary will notably consider the protective forced heirship mechanisms provided by the French Civil Code if an asset is located in France.
• Chinese courts will apply their own civil code without necessarily recognizing all foreign decisions.

Practical Examples / Illustrative Legal Cases

Typical Cross-Border Case: A French resident in Portugal leaves assets in several European countries. Unless otherwise stipulated in their will opting for their French nationality, Portuguese law normally applies everywhere – even to assets located outside Portugal – to determine heirs and inheritance shares.

Will Drafted Under Different Legislations: If a testator drafts their will in France but wishes to disinherit their children living abroad,

• According to French law: impossible due to mandatory protection (“forced heirship”).
• According to American law: possible due to total or partial absence of forced heirship; such an act may be valid locally but contestable elsewhere depending on the actual location of the concerned assets.

Summary List — Main Issues Encountered

• Divergence between national systems regarding the mandatory respect or not of forced heirship
• Administrative complexities during multi-country division/management
• Practical difficulty regarding automatic mutual recognition of foreign judicial decisions
• Frequent need for notarial intervention when amounts are high (>€5000) or real estate exists

The main practical difficulties arise especially when several states each claim the exclusive application of their own inheritance legislation; this can lead to prolonged conflicts before several jurisdictions simultaneously and uncertainty among heirs regarding the effective rights attached to the various assets dispersed worldwide.

Conflict of Laws in International Succession in China

General Principles of Conflict of Laws in China for International Successions

China applies a scission system in matters of conflict of laws for international successions. This means that the applicable law varies depending on the nature of the assets concerned:

• Movable Property: subject to the lex personalis of the deceased, i.e., the personal law (generally the nationality or domicile of the deceased).
• Immovable Property: subject to the law of the location of the assets (lex rei sitae).

This principle is enshrined in Chinese legislation, notably in the Law on the Application of Laws to Foreign-related Civil Relations of October 28, 2010, which aims to standardize the applicable rules in mainland China (excluding Hong Kong, Macao, and Taiwan, which have specific regimes).

Local Laws and Relevant International Conventions

• Law on the Application of Laws to Foreign-related Civil Relations (2010): This is the central text governing conflict of laws in mainland China, specifying the applicable law in matters of succession.
• Succession Law (1985): Specifies the modalities of inheritance devolution, grounds for disinheritance, and order of heirs.
• Absence of Major International Conventions: China is not a party to the 1989 Hague Convention on the Law Applicable to Succession to the Estates of Deceased Persons. The absence of bilateral tax treaties (for example with France) can lead to situations of double taxation or double succession.

Criteria for Determining the Applicable Law

Type of Asset	Applicable Law	Legal Reference
Movable Property	Lex personalis of the deceased	Law on Application of Laws (Art. 31)
Immovable Property	Law of the location	Law on Application of Laws (Art. 32)

For property relations between parents and children, the law of the common residence is preferred. Failing that, the law of the habitual residence or the national law may apply, with priority given to the law most favorable to the “weaker” party (often the child or surviving spouse).

Practical Examples and Common Challenges

Example 1: A Chinese national dies in France leaving real estate in China and bank accounts in France. The succession of the real estate will be governed by Chinese law, that of the bank accounts by French law (or the personal law of the deceased if that criterion is retained).

Example 2: In the absence of a tax treaty between France and China, an heir may be subject to double taxation on assets located in both countries.

Challenge: Foreign heirs often face administrative difficulties and incompatibilities between legal systems, particularly regarding the recognition of inheritance rights or the execution of wills drafted abroad.

Implications for Chinese Citizens and Foreign Heirs

• Chinese citizens with assets abroad must anticipate the fragmentation of their succession and the possible application of foreign laws for certain assets.
• Foreign heirs may face non-recognition of certain rights (e.g., forced heirship rights, execution of wills not conforming to Chinese law) and difficulties in accessing assets located in China.
• In the absence of conventions, double taxation or double succession remains a real risk.

Emerging Trends and Recent Developments

• The 2010 Law on the Application of Laws brought better coherence to the Chinese system, clarifying the connecting factors and standardizing practice in mainland territory.
• There is a rise in cross-border litigation, prompting Chinese authorities to consider greater openness to international standards and the negotiation of bilateral conventions.

Legislative Articles to Cite

Law/Article	Main Content
Law on Application of Laws (2010), Art. 31-32	Conflict rules for international succession
Succession Law (1985)	Order of heirs, grounds for disinheritance

Key Takeaway

International succession in China falls under a scission system, combining lex personalis for movables and lex rei sitae for immovables, with evolving legislation but still little harmonized with international practices.

Consequences for Expatriates and Legal Solutions

Expatriates face major legal challenges when managing an international succession involving China, particularly due to the lack of harmonization between legal and tax systems, as well as the risk of double taxation or conflicts of laws.

Main Challenges Encountered:

• Determination of the Applicable Law: The law governing the succession may differ by country. In China, immovable property is subject to the law of the place where it is located (lex rei sitae), while movable property often falls under the law of the deceased’s last domicile (lex domicilii)
• Recognition of Foreign Wills: A will drafted in another country must comply with local requirements to be recognized in China or in the country of origin.
• Absence of a France-China Bilateral Convention on Successions: This complicates the elimination of tax and legal risks associated with the international transfer of estates.
• Cross-Border Tax Obligations: Even though China does not currently apply an inheritance tax, an heir domiciled in France must declare any inherited asset located in China and potentially pay French duties.

Comparative Table – Major Applicable Principles

Type of Asset	Chinese Law	French / European Law
Real Estate (China)	Lex rei sitae (location of asset)	Often lex rei sitae
Movable Property	Domicile of deceased (China)	Last habitual residence
Foreign Will	Limited recognition	Compliance check
Taxation	No inheritance tax	Duties due on worldwide estate

Tax Implications:

In China, there is currently no specific taxation at the time of patrimonial transfer; no Chinese duties are due during a standard inheritance transfer.

In France, any tax resident must declare inheritances received from abroad. French duties apply even to assets located outside France. Failure to declare can lead to reassessments and penalties.

Recommended Solutions and Strategies:

• Draft an international will compliant with Chinese and French requirements to anticipate any difficulties related to its recognition.
• Favor the use of a bilateral convention when one exists (which is not the case between France and China), or use internal mechanisms to avoid double taxation through administrative or judicial means.
• Expressly choose in one’s will the applicable law authorized by certain international texts when possible (notably within the European Union).
• Systematically seek specialized cross-border legal counsel, capable of:
  • Analyzing each patrimonial element according to its location
  • Drafting all documents compliant with both legislations
  • Coordinating with local notaries to secure each step

Practical List – Tips for Expatriates:

• Regularly check local tax developments regarding inheritance taxation
• Maintain exhaustive documentation on all assets held in China
• Anticipate any donation or bequest via adapted multilingual acts
• Engage a lawyer specialized in international successions as soon as possible

The inherent complexity of the Chinese system makes a proactive approach based on personalized analysis indispensable, guided by professionals mastering both local law and that of the country of origin.

Case Studies on Complex International Successions in China

International successions involving China illustrate frequent conflicts between Chinese and foreign laws, particularly regarding the applicable law, recognition of wills, and jurisdictional competence.

Concrete Examples of Conflict of Laws:

Typical Situation	Challenge Encountered	Example of Resolution by Chinese Courts
A French citizen dies leaving real estate in Shanghai and a bank account in France	France applies the principle of unity of succession (one single applicable law), while China applies the scission system (movable property: law of the deceased’s domicile; immovable property: law of the location)	Chinese courts apply Chinese law for the real estate located in China and French law for the bank accounts, creating a “fragmented” succession between the two countries.
A foreign expatriate drafts a will in Europe without respecting the forms recognized in China	Problem of formal recognition of the will, as China requires compliance with certain forms to validate a foreign will	Chinese jurisdictions may refuse to execute a will not conforming to Chinese requirements, sometimes forcing heirs to resort to mediation or a new legalization procedure.
Inheritance of copyrights or patents registered in China by a foreign national	Transmission of intangible assets: differences in approach regarding transmissibility and taxation	Chinese courts apply Chinese law for intangible rights registered on their territory, which may override provisions planned in a foreign will.

Famous Cases and Relevant Jurisprudence:

• The case of a Franco-Chinese businessman who died in Beijing, whose family contested the validity of a will drafted in Paris. The Beijing Intermediate Court applied Chinese law for the real estate located in Beijing, rejecting provisions of the will not recognized locally.
• A case involving a US national having shares in a Chinese company: the distribution of shares was subject to the law of the domicile (United States) for movable transmission, but the recognition of heirs required homologation in China, generating a double administrative circuit.

Specific Challenges Encountered:

• Differences in the recognition of wills: some foreign wills are not recognized due to non-compliance with Chinese formal or substantive rules.
• Questions of competence: Chinese courts declare themselves competent for assets located in China, even if the succession is opened abroad.
• Transmission of intangible assets (patents, copyrights): China strictly applies the law of the place of registration, which may override foreign testamentary wishes.

Implemented Solutions:

• Recourse to international mediation to reach an amicable agreement between heirs of different nationalities.
• Use of bilateral agreements where they exist (rare case for China, which has not signed a succession convention with France or the United States). In most cases, the absence of a convention imposes separate management of the succession in each country.
• Homologation or legalization of foreign documents to enable their recognition in China, which often involves certified translation and notarial procedure work.

Implications for Legal Practitioners:

• Need for dual expertise, both in Chinese law and foreign law, to anticipate conflicts of laws and effectively advise clients.
• Obligation to verify the formal validity of foreign acts in light of Chinese law.
• Importance of anticipatory succession planning for expatriates and holders of assets in China, to avoid blockages related to divergences in legal systems.

Key Takeaway:

Practitioners must systematically anticipate the fragmentation of the succession, the duality of procedures, and the absence of bilateral conventions with China. Mediation and international notarial preparation are often the only ways to limit conflicts and accelerate the transmission of the estate.