China is running a full-court press for global arbitration clients. What’s the verdict so far?
- China is billing its large cities as up-and-coming spots to host disputes through arbitration, but international interest is still low
- Analysts say a more developed system is needed to assuage concerns from global firms and catch up to venues like Singapore
After two years of hard work, Beijing-based lawyer Wilson Wei Huo had cause for celebration. His team had won an arbitration case earlier this year – a rare victory for a firm in mainland China – representing a domestic enterprise in an overseas dispute.
Declining to reveal details of the case, Huo said that it features many of the risks and challenges businesses from the mainland may face when taking part in the initiative, China’s global infrastructure strategy with a focus on projects in the developing world.
Victories like Huo’s are highly sought after by Chinese enterprises operating overseas, with demand for international commercial arbitration growing concurrently with their activities abroad.
A single legal dispute could ruin your entire deal … Your reputation in the overseas market or your entire investment could be lost
The growing number of Chinese applicants will have a wider impact on international arbitration destinations in the future, legal experts said, as those companies want institutions that are familiar with their homeland’s legal and commercial culture.