Editor’s Note: The Fourth Seminar of the International Commercial Expert Committee of the Supreme People’s Court and Reappointment (New appointment) Ceremony of Expert Members was held successfully on September 25, 2024. Over 40 experts from more than 20 countries and regions focused on the theme of the “Collaborative Dialogue, Diverse Integration, Peaceful Development” during the seminar. Extensive and in-depth discussions were held within the framework of four specific issues. The texts of speeches delivered by the members of expert committee and distinguished guests during the discussion session on Topic One International Experience and Chinese Practice of International Commercial Courts: Procedural Rules, Case Management, and Building Judicial Credibility Building would be posted on the CICC’s website.

Practice of International Commercial Court and Cross-border Commercial Litigation in China

Justice  WANG Shumei

Standing Member of the Adjudication Committee of the SPC  

Respected Chairperson and distinguished guests, good morning!

I am honored to speak on the first topic of today’s symposium. In recent years, with the advancement of high-level opening up, cross-border trade and investment have continued to grow, and the number of cross-border civil and commercial cases accepted by Chinese courts has increased accordingly. Foreign parties are increasingly opting to have their disputes adjudicated by Chinese courts. From 2013 to the first half of 2024, Chinese courts concluded 492,200 first-instance foreign-related and Hong Kong, Macao, and Taiwan-related civil and commercial cases, covering over 100 countries and regions worldwide. Today, I would like to share three key insights from China’s experience in developing international commercial courts and handling cross-border commercial litigation:

I. Committed to Advancing the Modernization of Cross-border Commercial Litigation Mechanisms

To address the bottlenecks affecting the quality and efficiency of cross-border commercial litigation, such as conflicts in jurisdiction over parallel proceedings, difficulties in cross-border service of process and evidence collection, and challenges in ascertaining foreign law, we have implemented the following measures:

1. Actively supporting legislative reforms to amend the Civil Procedure Law. In 2023, China’s Civil Procedure Law underwent its first major revision of the foreign-related section, improving mechanisms for foreign-related jurisdiction. This included removing the “substantial connection” requirement for jurisdiction by agreement, adding provisions on parallel litigation and the principle of forum non conveniens, and enhancing mechanisms for foreign-related service of process and evidence collection. The revision also clarified fundamental norms for recognizing and enforcing foreign civil and commercial judgments, thereby establishing a comprehensive set of procedural rules for foreign-related civil litigation.

2. Accelerating the establishment of mechanisms to facilitate foreign-related civil litigation. The Supreme People's Court has issued judicial interpretations and conference summaries to guide practice in facilitating the participation of foreign parties in litigation, simplifying the notarization and authentication of foreign evidence, and promoting efficient and lawful service of documents. A nationwide judicial assistance management platform has been set up, effectively reducing the time required for foreign-related service of process. Additionally, cross-border litigants now have access to services such as online case filing, notarization, and case status inquiries, significantly reducing litigation costs for parties. Following the entry into force of the Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents in China in November of last year, the authentication requirement for foreign public documents compliant with the convention has been eliminated, facilitating the cross-border circulation of such documents.

3. Continuously optimizing mechanisms for ascertaining foreign law. A unified platform for the ascertainment of foreign law has been established, and in 2023, the Supreme People’s Court issued a judicial interpretation on this matter, providing systematic rules for the responsibility, methods, and specific procedures for ascertaining foreign law. The Supreme People’s Court has also published typical cases on foreign law ascertainment to address the difficulties involved in determining foreign law.

II. Committed to Promoting the Internationalization of Cross-border Commercial Litigation Mechanisms

1. Accelerating the Development of the International Commercial Court. Since its establishment in 2018, the Supreme People’s Court’s International Commercial Court has accepted 42 international commercial disputes and concluded 29 cases, involving a total amount of over RMB 10 billion. For example, in the case of a dispute between the Manila branch of a certain bank and a Jiangsu-based bank over a standby letter of credit, the Court ruled that under Chinese law, a standby letter of credit with a guarantee function should be regarded as an independent guarantee. This case also clarified the standards for recognizing fraud and payment injunctions, providing valuable guidance for similar cases. Another example is a case successfully mediated last year involving a cross-border dispute over damages to a pharmaceutical patent cooperation, valued at RMB 1 billion. The dispute was resolved through a comprehensive cross-border settlement, with the parties withdrawing multiple related lawsuits in both China and the United States, effectively resolving the dispute.

2. Supporting the Establishment of Local International Commercial Courts. In recent years, the Supreme People’s Court has supported the establishment of local international commercial courts in 12 intermediate courts in cities such as Suzhou and Beijing, creating a distinct and well-structured landscape for cross-border commercial litigation. For example, the Beijing International Commercial Court has established a streamlined “green channel” for handling preservation measures, case filing, trials, and enforcement in foreign-related cases.

3. Promoting the Harmonization of Domestic and Foreign-Related Legal Frameworks. Chinese courts have applied the applicable law accurately and faithfully adhered to international treaties. For instance, in 2023, Chinese courts recognized and enforced over ten foreign arbitral awards issued by arbitral institutions such as the Singapore International Arbitration Centre and the International Chamber of Commerce, pursuant to the New York Convention, without any refusal to recognize or enforce foreign awards. Chinese courts also handle cases requesting recognition and enforcement of foreign civil and commercial judgments, continuously enriching the content of the reciprocity principle. For example, in March 2022, the Shanghai Maritime Court, applying the principle of “de jure reciprocity” for the first time, recognized and enforced a judgment of a UK court, affirming the existence of reciprocity between China and the UK. Another example is the ruling by the People’s Court of the Chongqing Free Trade Zone in a case involving the transfer of rights under a railway bill of lading, where the court actively supported the transaction model within China’s existing legal framework, thereby advancing China’s proposal in the United Nations Commission on International Trade Law’s international legislative project on transferable transport documents.

III. Committed to Promoting the Synergistic Development of Diversified Dispute Resolution Mechanisms

1. Building a “One-Stop” Platform for Diversified International Commercial Dispute Resolution. We have integrated resources of platform institutions intelligently, enabling early neutral evaluation, as well as the seamless online connection and handling of litigation, arbitration, and mediation.

2. Supporting the High-Quality Development of International Arbitration. We support innovations in arbitration mechanisms through the issuance of judicial interpretations and regulatory documents. Additionally, we enhance judicial transparency and unify arbitration judicial review standards through the publication of annual reports on judicial review of arbitration and typical cases.

3. Establishing a Mediation Mechanism Throughout the Dispute Resolution Process. We resolve disputes through various forms of mediation, including court-appointed mediation, court-referred mediation, and litigation-mediation-litigation, as well as by judicial confirmation of mediation agreements. In foreign-related civil and commercial cases, if both parties reach an agreement through mediation and request a judgment, the people’s court may issue a judgment based on the mediation agreement.

The fair, efficient, convenient, and low-cost resolution of cross-border commercial disputes is a shared goal of courts worldwide and an urgent need of both domestic and foreign parties. Looking ahead, Chinese courts are willing to work with judicial bodies, legal service organizations, and expert committees from various countries to deepen exchanges on the management of cross-border commercial cases, actively promote the cross-border circulation of civil and commercial judgments, and support the development of diversified dispute resolution mechanisms, including arbitration and mediation, to contribute to the creation of a higher-level international commercial dispute resolution framework.

This concludes my remarks. Thank you all!

*The original text is Chinese and has been translated into English for reference only. If there is any inconsistency or ambiguity between the Chinese version and the English version, the Chinese version shall prevail.