In February 2015, China’s Supreme Court released a new Judicial Interpretation on Vessel Arrest in China. The Interpretation has been in force since 1 March 2015.
When a vessel is arrested in China, two guarantees have to be provided. The one is the guarantee to lift the arrest; the other is the guarantee required to secure any claim for wrongful arrest. This second guarantee is commonly referred to as ‘counter security’. The Interpretation does not concern itself with the guarantee to lift the arrest but does deal with the counter security to be provided.