China commercial court strengthens its cross-border dispute resolution

The China International Commercial Court (CICC) of the Supreme People's Court (SPC) held its circuit trial for an international commercial dispute in Shanghai recently, offering an innovative approach to resolving cross-border commercial conflicts.

The CICC publicly heard a case involving disputes between foreign and Chinese shareholders regarding capital contributions and corporate governance. Key issues included shareholder rights, the interpretation of company charters and the identification of significant transactions between related-parties.

The CICC emphasized that the circuit trial represents a multifunctional judicial practice, combining dispute resolution with judicial guidance, discussion of judicial interpretations and the training of foreign-related legal professionals. The initiative has established a benchmark for handling similar circuit trials.

Over 80 observers, including National People's Congress deputies, experts of SPC's International Commercial Expert Committee, arbitrators, mediators and law school faculties and students, attended the hearing. Foreign observers commended the circuit trial mechanism for providing accessible judicial services and clear legal guidance to both Chinese and foreign business entities in the Yangtze River Delta region while contributing to a predictable, law-based business environment.

The Third Plenary Session of the 20th Central Committee of the Communist Party of China, held in 2024, has outlined plans to improve the institutional mechanisms for high-level opening-up, a process that requires the guidance, regulation, support, and safeguards of the rule of law.

The CICC has been providing international investors with more efficient, transparent, and predictable dispute resolution pathways, while contributing to the dual circulation development paradigm that integrates domestic and international markets.

These efforts not only underscore its commitment to delivering high-quality foreign-related judicial services in support of the nation's high-standard opening-up initiatives, but also continuously strengthen China's position as a preferred destination for international commercial dispute resolution.