China’s top court, the Supreme People’s Court, has announced the release of a judicial interpretation on extraterritorial laws to resolve cross-border disputes. This move aims to aid Chinese judges in efficiently resolving disputes involving external parties, particularly in the context of increased cross-border business exchanges resulting from the Belt and Road Initiative (BRI). The court emphasized the significance of accurately determining and applying extraterritorial laws in handling commercial cases, highlighting its commitment to respecting litigants from China and abroad and safeguarding international transactions.
Developing the interpretation was a complex process due to the different legal systems of the countries participating in the BRI. Extensive research was conducted to formulate methods and procedures for applying extraterritorial laws. As a result, the judicial interpretation has now been approved by the Supreme People’s Court’s judicial committee and is ready for issuance.
To demonstrate its commitment to high-quality development and the rule of law in external affairs, the top court disclosed twelve BRI-related cases handled by Chinese courts. These disclosures showcase China’s judicial efforts in serving the BRI and promoting a coordinated approach to legal matters involving external parties.
In recent years, China has made significant progress in strengthening its legal system to resolve foreign-related commercial disputes, particularly in support of the BRI. In 2018, the top court established two international commercial courts in Shenzhen and Xi’an and formed an expert committee to serve as a think tank for dispute resolution. These measures have contributed to advancing foreign-related cases, with international commercial tribunals also being established in other cities like Beijing, Suzhou, Qingdao, and Hangzhou.
The two international commercial courts have already handled 27 disputes involving litigants from various countries such as the United States, Thailand, the Philippines, and Italy. Furthermore, the expert committee includes 61 experts from 24 nations. These initiatives aim to address the rising number of foreign-related cases, particularly in areas with robust foreign trade.
China’s focus on strengthening its legal system and promoting rule of law in international transactions demonstrates its commitment to providing an efficient and reliable business environment for cross-border exchanges. The release of the judicial interpretation on extraterritorial laws marks an important milestone in facilitating resolution of disputes involving external parties and protecting international transactions. As China continues to deepen its involvement in the BRI, these efforts will contribute to building trust, fostering cooperation, and ensuring a fair and just judicial process for litigants both from China and abroad.
