China Enhances Handling of Foreign-Related Cases to Foster Market-Oriented Business Environment

China's Top Court to Enhance Handling of Foreign-Related Cases

China's top court is taking steps to improve the handling of foreign-related cases, aiming to create a more market-oriented, legalized, and international business environment. This move comes as China seeks to reassure foreign businesses that their legal rights are protected under Chinese law.

The Supreme People's Court will issue a judicial interpretation clarifying the foreign-related provisions of the Civil Procedure Law. This interpretation will provide specific rules on parallel litigation and the service of judicial documents, ensuring efficient and fair handling of cases involving foreign parties.

The court will also participate in amending laws related to foreign affairs, including the Maritime Law and the Arbitration Law. Additionally, it will invest in talent cultivation to strengthen its capacity in handling foreign-related cases.

By offering equal protection and efficient legal services to both domestic and foreign litigants, China has made significant progress in building a robust legal framework for foreign-related matters. This has made China a preferred venue for resolving international commercial and maritime disputes.

The number of maritime cases heard by Chinese courts has increased dramatically, from just 18 in 1984 to over 29,000 in 2023. The types of maritime cases have also diversified, encompassing issues such as port operation, ship repair, shipping logistics, and maritime finance and insurance.

China's commitment to efficient and effective resolution of maritime cases is crucial for safeguarding its sovereignty, security, and development interests. It also enhances China's judicial credibility worldwide, attracting more foreign litigants to settle their disputes in Chinese courts.

Chinese courts have also seen a rapid increase in foreign-related commercial disputes, with the number of cases rising from 14,800 in 2013 to 44,900 in 2023. These cases involve litigants from over 100 countries and regions, including India, France, and Germany.

To create a sound business environment based on the rule of law, the top court has streamlined procedures for processing foreign-related commercial cases and established two dedicated international commercial courts in Shenzhen and Xi'an.

The court has also invited commercial legal experts from around the world to act as advisors, providing support during mediation and helping to determine when foreign laws should be applied.

China's top court remains committed to improving the quality of resolving foreign-related commercial and maritime cases, contributing to the promotion of high-quality development and a more open and optimized business environment.