China's Supreme People's Court (SPC) has unveiled a sweeping set of guidelines to advance the development of international commercial courts — a sign that the country is trying to reassure foreign businesses about legal certainty as it integrates deeper into the global trade system.

The 15-article guideline calls for a "well-structured, fair, efficient and convenient" system with Chinese characteristics to handle cross-border disputes. Measures include optimizing jurisdiction rules, improving case management, strengthening mechanisms to ascertain and apply foreign law, and expanding the use of international treaties and practices. The latest guidelines call for further professionalization of judges and stronger cooperation with organizations such as UNCITRAL and the Hague Conference on Private International Law. It is also the first legal document to systematically plan the coordinated development of international commercial courts at both the SPC and local levels.

SPC adjudication committee member Wang Shumei said the move aims to position China as a preferred forum for resolving cross-border commercial disputes, while supporting a "stable, transparent and predictable" business environment. 

Since 2018, China has established two SPC-led international commercial courts in Shenzhen and Xi'an, and authorized 16 intermediate courts nationwide to handle international commercial disputes.

To demonstrate its judicial progress, the SPC also released its fifth batch of typical cases related to the Belt and Road Initiative, offering crucial legal guidance for complex cross-border transactions. One key ruling has been established, for the first time, that a standby letter of credit with a guarantee function should be adjudicated under Chinese rules for independent guarantees, providing critical legal certainty for international financial transactions. Another case involved an engineering project in Africa, showcasing the court's innovative approach to overcoming challenges in cross-border evidence collection and technical appraisals.

These measures are a crucial component of China's strategy to strengthen the rule of law in foreign affairs. Legal analysts say by improving its legal framework and providing clear judicial precedents, China is actively working to enhance its credibility and appeal in the international commercial justice sphere, aiming to provide stronger legal protection for the growing global business activities.

(Cover via VCG)