Editor's note

In 2013, General Secretary Xi Jinping proposed the Belt and Road Initiative (the BRI) for the first time. Over the past decade, the BRI has evolved from a visionary concept to a meticulously crafted endeavor, making it the most popular international public good and the largest international cooperation platform. Its remarkable achievements are evident to all.

The Belt and Road initiative is inseparable from judicial safeguards. Over the past decade, the people's courts have actively implemented the central leadership's decisions to establish an international mechanism and institution for resolving commercial disputes related to the Belt and Road initiative. They have proactively served and integrated into the initiative, providing fair and efficient judicial services and guarantees for the deep, steady, and far-reaching development of the initiative.

To this end, this magazine has specially launched a set of cover articles to discuss the significance and far-reaching impact of judicial services and guarantees on promoting the building of the Belt and Road initiative, and to fully demonstrate the fruitful results of the ten-year rule of law building of the Initiative for the benefit of readers.

Forging a New Frontier for Resolving International Commercial Disputes along the Belt and Road

On the Occasion of the 10th Anniversary of the Proposal for Jointly Building the Belt and Road Initiative

By Shen Yang

An economic belt fuses ancient and modern; and a Silk Road stretches thousands of miles.

In the autumn of 2013, General Secretary Xi Jinping put forward the grand vision of the Belt and Road Initiative, slowly unfurling a magnificent blueprint that spans thousands of miles of seas and connects the economic circles of Asia, Europe, and Africa. Over the past decade, the Belt and Road Initiative has borne fruit across vast continents, set sail in vast oceans, illuminated the dreams of people from countless countries, and injected inexhaustible energy into the building of a community with a shared future for mankind.

"China's engagement with the world as a responsible major power in international affairs must adeptly employ the rule of law," proclaimed General Secretary Xi Jinping with resounding strength.

The rapid advancement mirrors the unwavering commitment of the people's judiciary in resonance with the strategic deployment of the Party and the country.

Zhang Jun, Secretary of the Party Group, President and Chief Justice of the Supreme People's Court of the People's Republic of China, emphasized the pursuit of stability and progress, upholding integrity while fostering innovation, modernizing the judiciary to serve and safeguard modernization with Chinese characteristics.

Tao Kaiyuan, Vice President of the Supreme People's Court and Justice of the second rank, stated that the Supreme People's Court is accelerating the construction of a comprehensive, world-class international mechanism with Chinese-characteristics for the resolution of commercial disputes. It actively promotes innovative development in the "one-stop" platform, meeting the diverse dispute resolution needs of both Chinese and foreign parties. It is gradually making China the preferred destination for the resolution of international commercial disputes, contributing the force of Chinese rule of law to the joint building of the Belt and Road and the reform of the global governance system.

Over the past decade, the people's courts have conscientiously shouldered the mission of the times, fully exerting their judicial functions, actively serving and integrating into the process of building the Belt and Road Initiative. Through the improvement of judicial policies, the advancement of diversified dispute resolution through a "one-stop" mechanism, and strengthened international cooperation and exchanges, they have fostered a sound legal environment for the building of the BRI.

Guiding Direction through Top-Level Design

“In the new phase of the high-quality co-building of the BRI, the role of the judiciary is indispensable. Chinese courts adhere to multilateralism, coordinate and promote the domestic and foreign-related rule of law, closely focus on the overall work of the Party and the country, and impartially and efficiently adjudicate foreign-related commercial and maritime cases. With practical actions, we continuously meet the judicial needs of the subjects involved in the BRI.” expressed Wang Shumei, a Standing Member of the Adjudication Committee of the SPC and Justice of the second rank.

In June 2015, the Supreme People's Court issued the Several Opinions of the Supreme People's Court on Providing Judicial Services and Safeguards for the Building of the “Belt and Road” by People's Courts. In December 2019, in response to the new requirements as the BRI shifted from a visionary concept to a meticulously crafted endeavor, the Supreme People's Court released the Opinions of the Supreme People's Court Regarding Further Providing Judicial Services and Guarantees by the People's Courts for the Belt and Road Initiative.

The strengthening of judicial cooperation, choice of governing law, the ascertainment of foreign laws, and presumption of reciprocity, all highlighted in the above-mentioned two Opinions, offer practical measures to foster a market-oriented, international, and legalized business environment.

The correct application of foreign laws, adherence to international treaties, and compliance with international conventions by the people's courts directly impact the assessment of China's investment and trading environment by the participants of the BRI. Faced with the urgent need for judicial practices within the BRI, the issuance of the two Opinions has effectively outlined the functions and roles of the people's courts in the building of the initiative.

Huang Jin, Vice President of China Law Society, President of the Chinese Society of International Law, and a member of the International Commercial Expert Committee of the Supreme People's Court, believes that the timely release and implementation of the two Opinions by the Supreme People's Court actively respond to the judicial concerns and needs of foreign market entities in the building of the BRI. This release underscores the role of judicial services in safeguarding the significant strategy of the country's opening-up to the outside world and deserves full recognition.

Serving and Safeguarding Major National Strategies

In today's world, the tide of openness and connectivity surges forward.

With the deepening of infrastructure connectivity, trade facilitation, and financial integration under the Belt and Road initiative, cross-border commercial disputes continue to rise. Fair, efficient, expeditious, and cost-effective resolution of international commercial disputes has become a consensus among participants of the Belt and Road initiative.

In January 2018, the Opinions on the Establishment of "Belt &Road" International Commercial Dispute Resolution Mechanisms and Institutions was reviewed and passed. Equal protection of the legitimate rights and interests of Chinese and foreign parties concerned, efforts to create a fair and just business environment, and the implementation of high-level trade and investment liberalization and facilitation policies were elevated to the  top-level design, indicating the direction for the people's courts to serve and safeguard the Belt and Road initiative.

On June 29, 2018, the First International Commercial Court and the Second International Commercial Court of the Supreme People's Court were officially established in Shenzhen, Guangdong Province, and Xi'an, Shaanxi Province, respectively. The Supreme People's Court issued the Provisions of the Supreme People's Court on Several Issues concerning the Establishment of International Commercial Courts, providing institutional norms for the smooth operation of the international commercial courts in the form of judicial interpretations.

"Over the past five years, under the leadership of the Supreme People's Court, the international commercial courts have continuously improved their adjudication mechanisms, enhanced the quality of dispute resolution, and steadily increased their international influence," said Liu Xiaohong, the Vice Chairman of China Society of Private International Law, the President of the Shanghai University of Political Science and Law, and a member of the International Commercial Expert Committee of the Supreme People's Court.

On May 29, 2019, the Second International Commercial Court of the Supreme People's Court held a trial on public in Xi'an, hearing the case of the plaintiff Reignwood Group against the defendant Red Bull Vitamin Beverage Co., Ltd, and the third party, Int’l Group, regarding the dispute of shareholder qualification confirmation. This marked the first public trial of a case by the International Commercial Court of the Supreme People’s Court.

Since the establishment of the CICC, it has concluded a number of cases that have attracted great attention across the legal circle and served as a guidance of rules. The cases involve parties from more than ten countries including the United States, Italy, Singapore, and Japan, and types ranging from disputes in product liability and the distribution of company earnings, to letter of credit fraud and applications to confirm the validity of arbitration agreement. Among them, one case was selected as a guiding case of the Supreme People's Court, and two cases were selected as model cases involving the building of BRI.

In addition, the Supreme People's Court has set up the International Commercial Expert Committee and hired 61 expert members from 24 countries to build a world-class legal think tank. "Expert members actively participated in the construction of the CICC, and provided suggestions for its path of development, living up to their role as a 'think tank'." said Zhang Yuejiao, the former president of the WTO Appellate Body and a member of the International Commercial Expert Committee of the Supreme People's Court.

For a long time, the difficulty in ascertaining and applying foreign laws has been plaguing foreign-related trials.

"The International Commercial Expert Committee appoints expert members to undertake multiple responsibilities such as case mediation, foreign law ascertainment, and to provide suggestions on judicial interpretation and the formulation of judicial policies in the field of foreign-related civil and commercial trials." Gao Xiaoli, Chief Judge of the Fourth Civil Division of the Supreme People's Court of China, introduced. The Foreign Law Ascertainment Platform was set up by the Supreme People's Court in 2019, pooling the resources of five foreign law ascertainment institutions and international commercial experts to solve the difficult problems in foreign law ascertainment in the practice of foreign-related trials. During the COVID-19 pandemic, the Supreme People's Court of China invited universities, research institutions and international business experts to jointly sort out rules and cases of force majeure in more than 60 major countries and regions and published seven issues of research reports. People's courts in many places have established expert databases for foreign law ascertainment and worked to build case databases for foreign law, as part of the efforts to explore effective paths for ascertaining foreign law.

Over the past five years, the Supreme People's Court of China has convened three International Commercial Expert Committee seminars, playing its role as a bridge to deepen international exchanges and cooperation on the rule of law and to build consensus among countries.

With the momentum of the BRI, China's judiciary system is on the track to hold high and brave the waves. At the local level, the Supreme People's Court of China supports 12 local intermediate people's courts with the most foreign-related commercial cases in building international commercial courts. The 12 local courts include people's courts in Suzhou, Beijing, Chengdu, Xiamen, Changchun, Quanzhou, Wuxi, Nanning, Hangzhou, Ningbo, Nanjing, and Qingdao, forming a unique international commercial trial pattern with outstanding advantages. A number of new institutions for the resolution of international commercial disputes are emerging.

Equally Protect the Legitimate Rights and Interests of Chinese and Foreign Investors

Economic development and rule of law are both indispensable. As the BRI thrives, a fair and just legal business environment has become the top concern of all parties.

Over the past ten years, people's courts have been committed to the strategy of high-quality foreign-related commercial and maritime cases, exercised jurisdiction in accordance with the law, accurately applied international conventions, respected international practices, and had numerous cases tried fairly and efficiently. China has left ever more impressive marks on the way of constructing rule of law along with the BRI.

In November 2014, the legal department of China Environmental Technology Holdings Co., Ltd. in Singapore received a civil ruling issued by the Supreme People's Court of People's Republic of China. This marks the end of the dispute over shareholder investment between the company and Sino-Enviroment Technology Group Limited..

This is a judicial practice that equally protects the legitimate rights and interests of market entities.

"The trial of this case reflects our country's judicial concept of equal protection of the legitimate rights and interests of market entities." As an observer of the case, Shen Sibao, president of the International Economic Law Research Association of China Law Society and a professor at the University of International Business and Economics, believes that this case helps foreign investors better understand the scope, strength and regulations of Chinese judicial protection, which is of great significance for optimizing the legal environment for foreign investment.

In April 2019, the Qingdao Maritime Court properly resolved the case regarding the Arrest of “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. In April 2020, the Qingdao Maritime Court took the case concerning the seizure auction and the action of affirming rights of the “SAM LION”. All parties concerned are either foreign or from Hong Kong, and the dispute itself has no connection with the Chinese mainland. However, all plaintiffs filed their claims to the Qingdao Maritime Court, applying for seizing the ship. In recent years, an increasing number of parties involving in international maritime disputes that have no jurisdictional connection with China have chosen to turn to Chinese maritime courts, demonstrating the rising international credibility and influence of China in foreign-related justice.

In April 2023, the dispute over harming corporation interests between the plaintiff Betta Pharmaceuticals Co., Ltd. and the defendants including Beida Medical and Pharmaceutical Co., Ltd. was resolved under the auspice of the Second International Commercial Court of the Supreme People's Court of China. The subject matter of the case reached RMB 1 billion and not only did the parties concerned make peace again, but they withdraw their related lawsuits in the Second International Commercial Court, the People's Court of Pudong New Area, Shanghai, and the 15th Circuit Court of Palm Beach County, Florida, USA. It helped restore the business relationship between the parties to the greatest extent possible.

……

At the end of 2021, the Supreme People's Court of China issued the Minutes of the National Symposium on the Foreign-related Commercial and Maritime Trial Work of Courts, giving clear answers to 111 difficult issues in foreign-related commercial and maritime trials.

In addition, in order to unify the judgment standards and actively respond to controversial legal issues in foreign-related commercial and maritime cases related to the BRI, the Supreme People's Court of China has released 28 model cases in three batches, including disputes over purchase and sales of international cargo, maritime cargo transportation, demand guarantee fraud, and letter of credit. Such a release not only effectively improves the capability of people's courts in jointly building the BRI, but also provides the public and enterprises with clear and stable legal expectations.

Over the past ten years, people's courts at all levels across the country have concluded a number of cases of major influence involving the BRI, which reflects China's role as a responsible major country in implementing the BRI.

Jointly Promote "One-Stop" Diversified International Commercial Dispute Resolution Platform

In November 2018, the Supreme People's Court of China issued the Procedural Rules for the China International Commercial Court of the Supreme People's Court (for Trial Implementation), which clarified the procedures of the CICC in terms of acceptance of cases, service of process, pretrial mediation, case hearing, execution, and support for dispute resolution by arbitration, providing clear rules and guidance for the parties concerned to resolve disputes in the CICC. Moreover, the Working Rules of the International Commercial Expert Committee of the Supreme People's Court (for Trial Implementation) detailed the selection conditions, responsibilities, and behavioral norms of expert members of the International Commercial Expert Committee (ICEC), providing an institutional basis for the operation of the ICEC.

In July 2021, the "One-Stop" Diversified International Commercial Dispute Resolution Platform was launched online, making it feasible to handle the procedures of dispute resolution online, including case filing, mediation, evidence exchange, and court sessions, empowering the linking mechanism between litigation and arbitration, thereby helping Chinese and foreign parties concerned resolve disputes.

In May 2023, the Supreme People's Court of China held a seminar on the building of the "One-Stop" Diversified International Commercial Dispute Resolution Platform and the development of the Belt and Road Demonstration Zone for International Commercial Legal Services in Xi'an, Shaanxi Province. Some expert members of the ICEC and representatives from the "One-Stop" Platform and the Foreign Law Ascertainment Platform attended the seminar, themed "New Era, New Opportunities, and New Developments", to provide their suggestions for the high-quality development of the International Commercial Dispute Resolution Mechanism.

"In the new era, China has actively and farsightedly promoted the reform and exploration of the mechanism and institutions for international commercial dispute resolution, and carried out the reform and innovation of the BRI international legal services." Zhao Hong, Professor of the Law School of Peking University and expert member of the ICEC, said.

"Currently, it is essential to establish a fair, efficient and cost-effective mechanism for international commercial dispute resolution that is capable of linking litigation, arbitration and mediation, and is functionally-complementary, since this has become one of the most crucial indicators of a state or region under the rule of law and with an enabling business environment." Wang Chengjie, deputy director and secretary general of the China International Economic and Trade Arbitration Commission, said.

 “Hong Kong International Arbitration Centre is the first and only overseas arbitration institution that has joined the 'One-Stop' Diversified International Commercial Dispute Resolution Mechanism of the Supreme People's Court of China. The linking of litigation and arbitration through the CICC will enhance the efficiency, transparency, and predictability of arbitration, thereby strengthening the confidence of domestic and foreign parties to choose Hong Kong International Arbitration Center and the CICC to resolve their disputes." said Yang Ling, Deputy Secretary General of Hong Kong International Arbitration Centre.

By integrating the advanced experience of the international legal community and the distinctive elements and judicial features of Chinese legal system, the CICC is able to resolve international commercial disputes in a convenient, fast and cost-effective manner, which is attracting more and more Chinese and foreign parties concerned.

Further Judicial Exchanges between China and Other States

Under the BRI, the realization of Chinese dream can facilitate the realization of world dream.

From high-level visits to the organization of international conferences, Chinese courts are expanding friendship with more foreign legal organs and international judicial exchanges are deepening, with China's judicial resonating worldwide.

With an open mind, Chinese courts actively have been practicing the win-win concept and participating in the formulation of international rules. The Supreme People's Court has actively sent members to participate in the formulation of international conventions and rules, such as the Foreign Judgment Project and the Jurisdiction Project of the Hague Conference on Private International Law.

On September 5, 2023, the Signing Ceremony and International Seminar of the Beijing Convention on the Judicial Sale of Ships was held in Beijing. As the first international maritime convention named after a Chinese city adopted by the United Nations General Assembly, this convention is to effectively promote the safety of shipping financing and ship circulation, and help the healthy development of the international shipping economy.

Only through mutual assistance and reciprocity can we achieve steady and long-term progress.

On November 30, 2020, A Compendium of China-Singapore International Commercial Cases Curated for their Relevance to the Belt and Road Initiative (Chinese and English version) jointly compiled by the Supreme People's Court of China and the Supreme Court of Singapore was published and released. This compendium is a useful attempt of the Supreme Court of China to exchange and cooperate with states upholding the common law system in terms of cases, and provides vivid materials to tell the Chinese judicial stories well.

Sundaresh Menon, Chief Justice of the Supreme Court of Singapore, said that this compendium includes important commercial cases related to the BRI heard by the courts of China and Singapore, explores a series of important legal issues that may arise when carrying out economic and trade activities within the BRI framework, and explains the significance of resolving international commercial disputes. In this sense, this compendium can help the courts of the two countries enhance communication and mutual trust and jointly carry out cooperation in regional rule of law.

On April 1, 2023, Tao Kaiyuan, vice-president of the Supreme People's Court of China, and Belinda Ang Saw Ean, Justice of the Court of Appeal of Supreme Court of Singapore, jointly signed the Memorandum of Understanding on Cooperation on the management of international commercial disputes in the context of the Belt and Road Initiative through a Litigation-Mediation-Litigation framework (hereinafter referred to as the Memorandum), which covers six aspects including the formulation and implementation of the intra-litigation mediation framework, cooperation with other parties, information sharing, characteristics of the mediation-in-litigation framework, model clauses for mediation-in-litigation, and other matters. The Memorandum shall take effect upon the date of signature.

In the past decade, the Supreme People's Court of China has responded to the desire of various countries to strengthen the international exchanges and cooperation of rule of law in the context of the BRI, and organized a variety of international judicial conferences, including the Meeting of the Chief Justices of the Member States of Shanghai Cooperation Organization, the BRICS Justices Forum, the China-ASEAN Justice Forum, Large-scale international judicial conferences such as the Silk Road (Dunhuang) International Forum on Judicial Cooperation and the Maritime Silk Road (Quanzhou) International Forum on Judicial Cooperation, thereby making China's judicial system play a more important role in the world.

At the same time, an increasing number of outstanding foreign-related trial talents have entered the international stage. In 2021, Judge Shen Hongyu of the International Commercial Court was successfully elected as a judge of the Administrative Tribunal of the United Nations International Labor Organization (ILO), filling the "gap" in China's judge be appointed in administrative judicial system of the ILO; in 2022, Judges Gao Xiaoli and Sun Xiangzhuang of the International Commercial Court were successfully elected to the United Nations Appeals Tribunal and the United Nations Dispute Tribunal, becoming the first Chinese judges to be appointed since the establishment of these tribunals. Furthermore, many CICC judges serve as observers of International Institute of the Unification of Private Law, members of Expert Committee of CCPIT and UNCITRAL, and directors of the Asian Business Law Association. All of them represent the high level of China's foreign-related justice.

Moving forward, China's judicial system is towards a promising future. Gao Xiaoli said that the Supreme People's Court of China will further promote the high-quality development of the CICC in the future by improving the mechanism for "one-stop” diversified international commercial dispute resolution, releasing more typical cases related to the BRI, and building a legal database for the BRI, and deepening exchanges and cooperation in the judicial field with other countries. Through these efforts, the people of the countries participating in the BRI will have a growing and tangible sense of gain.

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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.