Wang Shumei

Standing Member of the Adjudication Committee of the SPC Justice of the second rank

In 2013, General Secretary Xi Jinping proposed the Belt and Road Initiative (the BRI), which renewed the mandate of the ancient Silk Road. The Belt and Road Initiative has been welcomed by the international community both as a public good and a cooperation platform, as pointed out in the report of the 20th National Congress of the Communist Party of China which summarizes the great changes and achievements in the past 10 years of the new era. The report further demanded on the high-quality development of the BRI. To this end, people's courts must shoulder the responsibility in the new era of modernizing foreign-related commercial and maritime trials to meet the new requirement of the BRI development and facilitate the deepening and implementation of the BRI, thus promoting the building of a community with a shared future for mankind.

1. Understanding the Importance of Rule of Law in Ensuring High-Quality Development of the BRI

As General Secretary Xi Jinping pointed out, China must pursue the rule of law in its engagement in the international affairs as a responsible major country. Since the world is undergoing profound changes unseen in a century, the development of the BRI unavoidably faces more complex international situations with unbalanced international powers, constantly evolving international landscape and order, and the changing international rules. In addition, some BRI cooperation countries are suffering from political instability, weak governance capabilities, and incompatible laws and regulations, which result in a high incidence of compliance risk incidents when Chinese companies expand overseas markets. The BRI-related disputes urgently need to be resolved through the rule of law. Therefore, as the important platform for building a community with a shared future for mankind, the rule of law plays a vital role in ensuring the high-quality development of the BRI.

To improve the rule of law in the BRI development, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement Xi Jinping Thought on the Rule of Law, execute the strategies of the 20th National Congress of the Communist Party of China, deeply understand the decisive significance of the “Two Establishes”, “Four Consciousness”, "Four Confidence", and "Two Safeguards", and coordinate the rule of law both domestic and foreign-related. First, we should maintain firm political stance. We must uphold the Party's leadership over the work of people's courts, follow a path of socialist rule of law with Chinese characteristics, and form political consciousness in the whole process of foreign-related commercial and maritime trials. Second, we should understand the international situations. We need to have profound insights into international trends, crises and opportunities, actively identify and respond to changes, give full play to the role of foreign-related commercial and maritime trials, and have the courage and skills to fight for national sovereignty, security, and development interests. Third, we should adhere to multilateralism, unswervingly safeguard the international system with the United Nations at its core and the international order based on international law, and promote a new form of international relations and rule of law featuring mutual respect, justice, and win-win cooperation. Fourth, we should do more theoretical research on international law, actively participate in the formulation of international rules and international judicial exchanges. We should clarify the legal connotations of the BRI in a proactive and comprehensive way that can be easily accepted by the international community, emphasizing that the BRI is a public good China provides to the world, and that it is a chorus of all countries instead of a solo of China.

We must focus on the theme of "justice and efficiency" and effectively improve the quality and efficiency of foreign-related commercial and maritime trials to demonstrate China's image as a responsible power, and to inject new momentum for the rule of law to facilitate the building of a community with a shared future for mankind. Zhang Jun, secretary of the leading Party group and president of the SPC, pointed out that addressing conflicts and problems fundamentally should be the goal and direction of judicial trials. In the BRI-related commercial disputes involving different law systems, the parties concerned have a more intuitive and stronger perception of procedural justice and substantive justice. They also lay more emphasis on efficiency in cross-border commercial transactions, which requires efficient resolution of international disputes in commercial activities. This is why people's courts must focus on the theme of "justice and efficiency" by making fair judgments and improving efficiency to meet the needs of both Chinese and foreign parties concerned. To this end, we should first adhere to the principle of equal protection by protecting the legitimate rights and interests of all parties concerned in accordance with the law, give full play to the important role of justice in resolving the BRI-related disputes fairly and efficiently, and create a first-class business environment that is market-oriented, legal, and international. Second, we should improve the ability to deal with foreign-related trials, abide by international treaties, perform international obligations in good faith, respect international practices, effectively prevent and respond to foreign-related legal risks and challenges through high-quality foreign-related commercial and maritime trials, and demonstrate our country's image as a responsible power. Third, we should adhere to integrity and innovation. We should make innovation in the fierce competition for international voice to form a mechanism to resolve the BRI-related international commercial disputes, which is of Chinese characteristics, in line with the international rules, and truly attractive and competitive in the international community. In this way, Chinese and foreign market entities may be more willing to turn to our country's judicial institutions to resolve disputes.

The practice of the BRI over the past 10 years has proven that only by giving full play to the role of the rule of law in consolidating the foundation of governance, stabilizing expectations, and benefiting the long-term development can we effectively promote the willingness to cooperate in the economic development of BRI countries, thus promoting the vigorous development of international investment and trade. In this way, we can also promote the participation of BRI countries in the construction of infrastructure and cooperation networks in multiple fields, thus boosting the strong vitality and broad development space of the BRI as a global public good.

2. The Achievements Made by the Foreign-related Commercial and Maritime Trial Services of People's Courts in Supporting the BRI Construction

Over the past decade, the people's courts have fully played their role in the trials of foreign-related commercial and maritime cases in an inclusive, fair, convenient and efficient manner that upholds discussion, joint efforts and sharing, thereby having made the following achievements in supporting the building of the BRI.

Firstly, the systems and rules for application of laws in foreign-related civil and commercial cases have been improved. In the past decade, the Supreme People's Court of China (SPC) has formulated 32 judicial interpretation and 9 regulatory documents on foreign-related commercial and maritime trials, issued 18 guiding cases and 149 typical cases, including 40 typical cases related to the BRI construction, and unified rules for application of laws in cases involving the BRI. Moreover, the SPC has issued the minutes of the symposium on the trials of commercial and maritime cases, which includes the clear regulations for 111 difficult issues in foreign-related trials. During the COVID-19 pandemic, the SPC issued guidance on the trial of COVID-related international commercial and maritime cases, so as to stabilize foreign trade and industrial and supply chains while ensuring the stable foreign investment.

Secondly, the Belt and Road International Commercial Dispute   Resolution Mechanism and institutions have been established. Since 2018, to fully implement the Opinion Concerning the Establishment of the Belt and Road International Commercial Dispute Resolution Mechanism and Institutions issued by the General Office of the CPC Central Committee and the General Office of the State Council, the SPC has established the First and the Second International Commercial Court in Shenzhen and Xi'an respectively. Furthermore, the Commercial Court pioneered the International Commercial Expert Committee system by hiring 61 expert members from 24 countries, established a "One-Stop” Diversified International Commercial Dispute Resolution Mechanism, where 10 international commercial arbitration institutions and 2 international commercial mediation institutions have been introduced into the platform, thereby facilitating the linking between litigation, arbitration and mediation. In addition, the SPC has guided and supported the establishment of 12 local international commercial courts with diverse features and advantages in resolving international commercial disputes.

Thirdly, a number of cases involving the BRI construction have been reviewed and concluded since they hold significance in terms of rules, international influence and promotion of the rule of law. The SPC has clearly clarified the relationship between the United Nations Convention on Contracts for the International Sale of Goods and the governing law in the case of dispute over the contract for the international sales of goods involving ThyssenKrupp Metallurgical Products GmbH (Germany). In the case of dispute over the salvage fees of Archangelos Gabriel owned by Archangelos Investments, the SPC clarified the application of the International Convention on Salvage formulated in 1989 and relevant provisions of the domestic laws for the first time. The case of Zhanggong-Zushi Mummified Buddha Statute tried by the Intermediate People's Court of Sanming city of Fujian Province has set an example of the recourse of Chinese cultural relics lot in foreign countries through judicial channels. The Qingdao Maritime Court properly resolved the case regarding the seizure of the foreign ship M/V Nerissa to avoid parties involved to suffer huge losses. The foreign party, in return, renamed the ship "RESPECT" in honor of China's rule of law. Judicial cases in China have become an important source to enrich the practice of international law and China's 36 judicial cases were included in the Law and Case Law Database of the United Nations Commission on International Trade Law.

Fourthly, the modernization of foreign-related adjudicative mechanism has been advanced. The SPC has revised and amended the judicial interpretation on the service of judicial documents in foreign-related civil and commercial cases, focusing on making the service delivered more easily. Additionally, by gathering the resources of five foreign law ascertainment agencies and International Commercial Expert Committee, the SPC has established a Foreign Law Ascertainment Platform, built a resource database of foreign laws and cases, drafted judicial interpretation for foreign law ascertainment, and promoted the resolution of difficult issues related foreign law ascertainment. At the same time, the SPC has issued regulations on providing online case docketing services for parties involved in cross-border litigations, and relied on the online service platform of the people's courts to better the services of foreign-related litigation.

Fifthly, cross-border recognition and enforcement of judgments have been promoted. In the past 10 years, the people's courts have concluded more than 7,000 cases applying for recognition and enforcement of the judgments made by the courts of other countries, involving more than 40 countries. The 2nd China-ASEAN Justice Forum adopted the Nanning Statement and reached a consensus on the "presumptive reciprocity" advocated by China, substantially promoting the mutual recognition and enforcement of foreign judgments in civil and commercial matters among countries in the region.

Sixthly, international judicial exchanges and cooperation have been deepened. The SPC have actively hosted diplomatic activities in the judicial field by holding more than ten international judicial conferences such as the Meeting of Presidents and Chief Justices of the Supreme Courts of the SCO Member States, and promoted the formation of a number of documents detailing the outcomes. The SPC have developed friendships with the judicial institutions of over 140 countries and regions and over 20 international or regional organizations, and signed more than 70 cooperation agreements or memoranda, building broad consensus on the rule of law. Among these cooperation activities, the SPC has held 6 consecutive China-Singapore Legal and Judicial Roundtable with the Supreme Court of Singapore, signed 6 memorandums, and jointly published the A Compendium of China-Singapore International Commercial Cases: Curated for Their Relevance to the Belt and Road Initiative, an innovative way of judicial cooperation under the BRI. Since 2013, the SPC has played a role in the review of the implementation of 10 international conventions, the negotiation of 11 international conventions and model laws, and over 40 bilateral or multilateral judicial assistance agreements, contributing to the improvement of international commercial rules by using Chinese wisdom. On top of that, thanks to the efforts of the SPC, the Beijing Convention on the Judicial Sale of Ships, the first international maritime convention named after a Chinese city, was opened for signature in Beijing on September 5, 2023, transmitting to the international community the positive voices of China's rule of law in the high-quality construction of the BRI.

3. The People's Courts Paint the Blueprint for Modernization of Foreign-related Commercial and Maritime Trials, and Strive to Write a New Chapter on the Rule of Law under the Construction of the BRI.

Only by summing up experience can we move forward with determination. The new changes and development achieved in the construction of the rule of law of the BRI are fundamentally attributed to the leadership of General Secretary Xi Jinping at the helm of the CPC Central Committee as the core of the Party as a whole, the scientific guidance of Xi Jinping Thought on Socialism with Chinese characteristics for a New Era, and the fact that the Party has always adhered to the leadership of the CPC, and has always been steadfast in upholding the rule of law of the road of socialism with Chinese characteristics. On the new journey, the People's courts will unswervingly adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, study and implement Xi Jinping Thought on the Rule of Law, remain true to their original aspiration and keep their mission firmly in mind, and safeguard the construction of the BRI with the help of modernized services of foreign-related commercial and maritime trials.

First, we should accelerate the formulation and revision of judicial interpretation and normative documents and promote the systematization of norms for the application of foreign-related laws. In recent years, a number of new laws and regulations in the field of foreign-related affairs have been introduced, such as the Export Control Law of the People's Republic of China, the Law on Foreign Relations of the People's Republic of China, the Law of the People's Republic of China on Foreign State Immunity, and decisions on amending the Civil Procedure Law with foreign-related articles as the main content. This is the core of China's efforts to promote the rule of law both domestic and foreign-related, and to improve the level of the rule of law in international affairs. It has a profound background of the times and distinctive Chinese characteristics. The Supreme People's Court of China will revise the judicial interpretation of China International Commercial Court (the CICC) to allow the latest achievements in the development of China's international commercial trials to benefit more Chinese and foreign market entities; issue the judicial interpretation of foreign law ascertainment to clarify the distribution of investigation responsibilities and methods of ascertainment; and establish a jurisdiction mechanism in cases involving the immunity of foreign states and their property.

Second, we need to strengthen the research and application of international law and promote the modernization of foreign-related trial capability. We will study and issue judicial interpretations on the application of international treaties and practices of foreign-related civil and commercial cases, complete the institutional "puzzle" of sources of international law in the post-Civil Code era, and unify the application rules of treaties and practices. In accordance with the requirements of the Convention Abolishing The Requirement of Legalisation For Foreign Public Documents, the people's courts will simplify procedures for the cross-border use of public documents and improve the efficiency of handling foreign-related cases. The research on the feasibility of joining the Singapore Convention on Mediation will be promoted, and China's competitiveness in international commercial mediation will be enhanced.

Third, we will connect with the international community based on national conditions and promote the modernization of International Commercial Dispute Resolution Mechanism. We need to pay close attention to the development trends of international commercial rules and commercial practices, actively participate in the Jurisdiction Project in Hague Conference on Private International Law, and promote the integration of the commercial rules and dispute resolution rules of the cooperation countries of the BRI through international rule of law forums, signing of memorandums of understanding on judicial cooperation, and the issuance of guidelines on the "one-stop" diversified international commercial dispute resolution. We need also deeply refine the adjudication rules contained in typical cases of the CICC, continue to publish guiding cases and typical cases related to the BRI development, and emphasize the role of foreign-related commercial and maritime judicial cases with significant international impact in the formulation of international rules and filling gaps in the field of international law, and promote the formation of international customary law and general principles of law, so that they can play a greater role in the settlement of international commercial disputes.

In October 2023, China will host the third Belt and Road Forum for International Cooperation. People's courts will take this opportunity to work with the international community to summarize experience in rule of law, draw up a blueprint and jointly write a new chapter in rule of law under the building of the Belt and Road!

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*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.