Skip to main content
SpringerLink
Log in

Legal Issues in China’s Future Participation in the Space Protocol to the Cape Town Convention

  • Chapter
  • First Online:
Private Law, Public Law, Metalaw and Public Policy in Space

Part of the book series: Space Regulations Library ((SPRL,volume 8))

Abstract

After more than 10 years of work, the UNIDROIT finally adopted the Space Protocol to the Cape Town Convention in 2012. This protocol is meaningful in dealing with the issue of international interests in financing space assets. It is expected to create a predictable legal regime for the space financing industry. China, an important space power in the world, has great stake in the success of the space financing industry. China has been actively involved in the negotiation process for the Space Protocol and has already acceded to the Air Protocol to the Cape Town Convention. It would thus be necessary to examine possible impact of this third protocol on space financing industry in China. This article will further investigate the possibility of China’s accession to the protocol.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    See UNIDROIT Convention on International Factoring, May 28, 1988, 27 I.L.M. 943 (1988), entered into force May 1, 1995.

  2. 2.

    See for example, H.L. Buxbaum, Unification of the Law Governing Secured Transactions: Progress and Prospects for Reform, 8 Uniform Law Review 323–324 (2003); N. Hazan, The UNIDROIT Preliminary Draft Protocol on Matters Specific to Space Assets, 28 Annals of Air & Space Law 223 (2003).

  3. 3.

    Stacey A. Davis, Unifying the Final Frontier: Space Industry Financing Reform, 106 Commercial Law Journal 459–462 (2001).

  4. 4.

    Paul B. Larsen & Juergen A. Heilbock, UNIDROIT Project on Security Interests: How the Project Affects Space Objects, 64 Journal of Air Law and Commerce 722 (1999); Roy Goode, Transcending the Boundaries of Earth and Space: The Preliminary Draft UNIDROIT Convention on International Interests in Mobile Equipment , 3 Uniform Law Review 52 (1998); Ronald C.C. Cuming, “Hot Issues” in the Development of the (Draft) Convention on International Interests in Mobile Equipment and the (Draft) Aircraft Equipment Protocol, 34 International Lawyer 1093 (2000).

  5. 5.

    Mark J. Sundahl, The “Cape Town Approach”: A New Method of Making International Law, 44 Columbia Journal of Transnational Law 342 (2006).

  6. 6.

    Martin J. Stanford & Alexandre de Fontmichel, Overview of the Current Situation Regarding the Preliminary draft Space Property Protocol and Its Examination by COPUOS, 6 Uniform Law Review 60 (2001).

  7. 7.

    See Status-Convention on International Interests in<IndexTerm ID="ITerm231"> Mobile Equipment (Cape Town, 2001), available at http://www.unidroit.org/status-2001capetown

  8. 8.

    Sean D. Murphy, Contemporary Practice of the United States Relating to International Law: Private International Law: Cape Town Convention on Financing of High- Value , Mobile Equipment, 98 American Journal of International Law 852–853 (2004).

  9. 9.

    See further discussion, Mark J. Sundahl, The Cape Town Convention: Its Application to Space Assets and Relation to the Law of Outer Space 26 (Leiden: Martinus Nijhoff, 2013).

  10. 10.

    The Cape Town Convention, Article 16(1), available at http://www.unidroit.org/instruments/security-interests/cape-town-convention; The Space Protocol, Article XXXII (1), available at http://www.unidroit.org/instruments/security-interests/space-protocol

  11. 11.

    The Cape Town Convention, Article 17(2)(a)–(b). A Space Preparatory Commission to act as the Supervisory Authority was established in 2013. See Space Preparatory Commission, http://www.unidroit.org/instruments/security-interests/space-protocol

  12. 12.

    Yun Zhao, Revisiting Selected Issues in the Draft Protocol to the Cape Town Convention on Matters Specific to Space Assets, 76 Journal of Air Law and Commerce, No. 4, 813–816 (2011).

  13. 13.

    The Space Protocol, Article I.2(k).

  14. 14.

    The Cape Town Convention, Article 2(2).

  15. 15.

    The Cape Town Convention, Article 2(5).

  16. 16.

    The Cape Town Convention, Article 29(1).

  17. 17.

    The Cape Town Convention, Article 8(1)–(2).

  18. 18.

    See for example, UNIDROIT , Report of the Intersessional Consultations with Representatives of the International Commercial Space and Financial Communities, Paras. 24–27, UNIDROIT Doc. C.G.E./Space Pr./5/W.P.4 (October 18, 2010).

  19. 19.

    The Space Protocol, Article 27(1).

  20. 20.

    The Space Protocol, Article 27(4).

  21. 21.

    The Space Protocol, Article 27(7)(a).

  22. 22.

    The Cape Town Convention, Article 43(1)–(2).

  23. 23.

    The Space Protocol, Article 1(3).

  24. 24.

    The Space Protocol, Article 33.

  25. 25.

    Brian Harvey, The Chinese Space Program: From Conception to Future Capabilities, 10 (Praxis, 1998).

  26. 26.

    The State Council Information Office, China’s Space Activities, December 2011.

  27. 27.

    C.V. Anderson (Ed.), National Aeronautics and Space Administration (NASA): Background, Issues, Bibliography, 62 (New York: Nova, 2002).

  28. 28.

    Stephen Clark, Chinese Rocket Launches New Satellite for Pakistan, 12 August 2011, http://www.space.com/12622-china-rocket-launch-pakistan-satellite.html

  29. 29.

    Iwan Davies, The New Lex Mercatoria : International Interests in Mobile Equipment , 52 The International and Comparative Law Quarterly, No. 1, 168–171 (2003).

  30. 30.

    The Cape Town Convention, Article 19(4).

  31. 31.

    See for example, Article 25(1) of the Law of the Russian Federation “About Space Activity” (Decree No. 5663-1 of the Russian House of Soviets) which provides that “The organizations and citizens, which exploit space technology or to whose order the creation and use of space technology in scientific and national-economy purpose is carried out, shall take compulsory insurance coverage in the amount set by the legislation of Russian Federation.”

  32. 32.

    The Space Protocol, Article 4(3).

  33. 33.

    Id.

  34. 34.

    The Cape Town Convention, Article 3.

  35. 35.

    Convention on Registration of Objects Launched into Outer Space, November 12, 1974, 1023 U.N.T.S. 15.

  36. 36.

    Article 24 of the Property Law provides that “The establishment, modification, transfer and lapse of the right to property in respect of water-crafts, aero-crafts and motor vehicles without first being registered, shall not affect any bona fide third party.”

  37. 37.

    Article 42 of the Guaranty Law .

  38. 38.

    Article 106(1) of the Property Law provides that “Where the real or movable property is transferred to a transferee by a person without the power to do so, the rightful owner shall have the right to recover such property. Unless otherwise provided by law, the transferee shall obtain the ownership in respect of such real or movable property in any of the following circumstances: (i) the transferee accepts the transfer in good faith; (ii) such property is transferred with a reasonable price; (iii) the transferred property has been registered in accordance with the laws requiring such registration, and those not required to be registered has been delivered to the transferee.”

  39. 39.

    Id.

  40. 40.

    Financing Registration, http://www.pbccrc.org.cn/chanpinfuwu_306.html

  41. 41.

    Article 58 of the Insurance Law.

  42. 42.

    Article 59 of the Insurance Law.

  43. 43.

    Article 186(2) of the Insurance Law.

  44. 44.

    Promulgated by the State Council and the Central Military Commission Order No. 234, October 22, 1997, effective January 1, 1998, revised October 15, 2002.

  45. 45.

    Promulgated by the State Council Order No. 361, August 22, 2002, effective August 22, 2002.

  46. 46.

    The wordings regarding the declarations discussed in this section are cited fully from the official declarations lodged by the People’s Republic of China (PRC) under the Cape Town Convention and the Aircraft Protocol at the Time of the Deposit of its Instrument of Ratification in Respect Thereof, http://www.unidroit.org/english/conventions/mobile-equipment/depositaryfunction/declarations/bycountry/china.htm. The discussions in this section also benefit from the research report of Research Project No. 2 of the China Institute of Space Law in 2011: “Analysis on the Advantages and Disadvantages of China’s Accession to the Space Protocol”, conducted by the China Great Wall Industry Group Corporation, Ltd., 31 March 2012.

  47. 47.

    Article 43(1) of the Space Protocol provides that “No reservations may be made to this Protocol but declarations authorized by Articles XXXIX, XLI, XLII and XLIV may be made in accordance with these provisions.”

  48. 48.

    Article 42 of the Space Protocol provides that “Declarations made under the Convention…shall be deemed to have also been made under this Protocol unless stated otherwise.”

  49. 49.

    Article 109 of the Insolvency Law provides that “Secured creditors are entitled to obtain payment in priority over debtor’s specific asset.”

  50. 50.

    Article 113 of the Insolvency Law .

  51. 51.

    Martin J. Stanford, The New Regimen: Its History and Future After South Africa, 12 European Review of Private Law 12–13 (2004).

  52. 52.

    Lome Clark & Jeffrey Wool, Entry into Force of Transactional Private Law Treaties Affecting Aviation: Case Study—Proposed UNIDROIT /ICAO Convention as Applied to Aircraft Equipment, 66 Journal of Air Law and Commerce 1406 (2001).

  53. 53.

    Article 8(1) of the Space Protocol.

  54. 54.

    Dara A. Panahy & Raman Mittal, The Prospective UNIDROIT Convention on International Interests in Mobile Equipment as Applied to Space Property, 4 Uniform Law Review 303 (1999).

Author information

Authors and Affiliations

  1. Faculty of Law, University of Hong Kong, Hong Kong, Hong Kong

    Yun Zhao (Professor)

Authors
  1. Yun Zhao
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yun Zhao .

Editor information

Editors and Affiliations

  1. Attorney at Law, Sterns and Tennen, International Institute of Space Law, Phoenix, Arizona, USA

    Patricia Margaret Sterns

  2. Former Commissioner, Arizona Space Commi, International Academy of Astronautics, Phoenix, Arizona, USA

    Leslie I. Tennen

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Zhao, Y. (2016). Legal Issues in China’s Future Participation in the Space Protocol to the Cape Town Convention. In: Sterns, P., Tennen, L. (eds) Private Law, Public Law, Metalaw and Public Policy in Space. Space Regulations Library, vol 8. Springer, Cham. https://doi.org/10.1007/978-3-319-27087-6_4

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-27087-6_4

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-27085-2

  • Online ISBN: 978-3-319-27087-6

  • eBook Packages: Law and CriminologyLaw and Criminology (R0)

Publish with us

Policies and ethics

Search

Navigation