The Shanghai International Commercial Court was inaugurated in Shanghai to bolster the city's international legal framework and establish itself as a preferred destination for resolving commercial disputes involving foreign entities. The court will exercise centralized jurisdiction over foreign-related commercial cases, underscoring Shanghai’s commitment to exploring and refining mechanisms for international commercial adjudication. As a globally connected metropolis at the forefront of China’s reform and opening-up, the city seeks to enhance its international legal profile. Housed within the Shanghai First Intermediate People’s Court, the new court plans to draw on valuable experiences from other cities’ international commercial courts while catering to the unique needs of the China (Shanghai) Pilot Free Trade Zone’s liberalized investment and trade regime. “By leveraging the pioneering initiatives of the Shanghai FTZ, established in 2013, the court aims to construct a more professional and efficient international dispute resolution system and explore a ‘Shanghai model’ for resolving foreign-related commercial disputes,” said Xi Xuefeng, Vice President of the Intermediate Court.
The court’s establishment aligns with Shanghai’s broader efforts to position itself as an international hub for economics, finance, trade, shipping, and science and technology innovation. These ambitions demand a higher level of professionalization and internationalization in the city’s foreign-related adjudication mechanisms, court officials said. Professionalism, internationalization and digitalization are set to be the guiding principles for the new court. Adjudication mechanisms and standards aligned with international norms will be developed and digital technologies will be employed to enhance international commercial adjudication, officials noted.
“Digital technologies will help address long-standing bottlenecks that have restricted the quality and efficiency of international commercial trials, such as remote evidence authentication and extraterritorial investigation and evidence collection,” said Jia Yu, President of the Shanghai High People’s Court. “The court must also lead reforms and innovations, establish exemplary cases with rule-setting significance, and participate in the formation of international commercial rules, contributing to China’s influence in the global judicial arena,” he added.
“By providing impartial, transparent and efficient judicial services, the Shanghai International Commercial Court is expected to enhance international commercial entities’ trust in Shanghai’s legal environment and further drive the city’s openness and economic growth,” said Ni Di, Deputy to the National People’s Congress (NPC) and Senior Captain at COSCO Shipping Seafarer Management Co, the China Daily reports.
China’s courts have strengthened protections for foreign investors by efficiently resolving disputes, a move aimed at fostering high-level openness and creating a favorable business environment. The Supreme People’s Court (SPC) highlighted five recent cases involving foreign investors, showcasing efforts to provide equal protection under the law to domestic and international litigants and to offer them comprehensive legal services. The court emphasized the importance of accurately implementing laws such as the Foreign Investment Law, the Company Law and the Partnership Law to safeguard the rights of foreign enterprises and streamline dispute resolution.
