Shanghai Hearing Showcases China's Approach to International Commercial Disputes

On April 10, 2025, the Second International Commercial Court of the Supreme People's Court convened a public hearing in Shanghai. The hearing addressed a commercial dispute concerning contributions, involving both Chinese and foreign shareholders and directors.

The case presented common challenges encountered in foreign-related commercial disputes. These included defining the limits of shareholder rights and identifying significant related-party transactions within Sino-foreign joint ventures. Initially handled by a Shanghai court, the case was later transferred to the Supreme People's Court due to its intricate nature.

To accommodate the involved parties, the Second International Commercial Court of the SPC held the hearing in Shanghai. Observers included deputies from the National People's Congress, foreign experts, and representatives from foreign investment associations.

Attendees lauded the hearing as a model of a standardized, rigorous, and efficient legal process. They noted the judges' deep legal knowledge, insightful understanding of regulations, and skilled courtroom techniques. The judges were commended for their ability to identify the core issues, thoroughly analyze evidence, and provide clear legal interpretations.

The public hearing was seen as a demonstration of China's professional standards and international approach to handling foreign-related commercial disputes, establishing a precedent for similar cases. Foreign observers also highlighted the use of advanced simultaneous interpretation systems, which improved their understanding and participation.

This type of hearing provided clear legal guidance for both domestic and foreign commercial entities. It underscored China's dedication to protecting the legitimate rights and interests of all parties. Furthermore, it showcased the country's efforts to foster a top-tier business environment that is market-oriented, internationalized, and governed by the rule of law.