During the past several years, the Chinese Courts have heard greater number of cases involving foreign elements, and this trend definitely will continue.This increase is attributed to at least two aspects. First, China’s fast-growing economy has dramatically enhanced China’s presence in the world market and thus significantly generated more transnational business transactions and foreign investment. As a result, the number of commercial/civil disputes inevitably increased. Furthermore, the Chinese Courts positioned themselves to deal with litigation involving foreign parties. One particular issue arising is whether to treat both Chinese and foreign parties equally in litigation.  The public image desired by the courts is one of competence in handling cases involving foreign elements fairly and justly. To that end, the Supreme Court repeatedly asked all courts to exercise jurisdiction over cases involving foreign elements in strict accordance with existing law, treaty, and private agreement.