Shanghai Aims for Global Leadership in International Commercial Litigation

Shanghai Aims for Global Standards in International Commercial Litigation

Shanghai is taking steps to establish international commercial litigation rules that meet global standards, aiming to improve its handling of foreign legal affairs. This move is part of the city's broader efforts to enhance China's jurisdictional attractiveness, legal influence, and institutional competitiveness in trials related to foreign affairs.

The city also intends to align its judicial initiatives with global standards and actively participate in the formulation of international commercial rules. This will enhance China's authority and influence in international judicial matters.

In recent years, Shanghai courts have demonstrated their commitment to internationalization by citing the rules of the United Nations Commission on International Trade Law in some cases and recognizing judgments from other countries.

As a key hub of China's reform and opening-up, Shanghai is working to position itself as an international center for economy, finance, trade, shipping, and technological innovation. The city's efforts to better manage foreign-related legal affairs play a crucial role in creating a more favorable international business environment.

The Shanghai High People's Court recently released the second season of a docuseries highlighting the city's foreign-related judicial work. The series features foreign-related cases and interviews with expatriates who discuss the Shanghai courts' innovative efforts to handle legal matters in the business environment.

One example is a 2023 case involving Tesla engineer Adrian Hamczyk and his team, where trade secrets were leaked. The intellectual property tribunal of the Pudong New Area People's Court took swift legal action to prevent further leaks.

Additionally, the Shanghai No 3 Intermediate People's Court recently became the first court in China to recognize Japanese bankruptcy proceedings. This recognition allowed the Shanghai office of Japanese law firm Nagashima Ohno & Tsunematsu to assist a financially troubled Japanese company in disposing of assets in China.