Improved legal mechanisms critical for opening-up

Editor's note: China has indicated it will strengthen foreign-related rule of law in the 15th Five-Year Plan (2026-30) period. China Daily spoke to Kong Qingjiang, dean of the Academy for the Foreign-Related Rule of Law at China University of Political Science and Law, on the development of foreign-related rule of law in China. Below are excerpts of the interview. The views don't necessarily represent those of China Daily.

The central authorities have identified strengthening the rule of law in foreign-related affairs as one of the key tasks for advancing the socialist rule of law with Chinese characteristics.

As of January 2025, China had established a legal framework comprising 54 specialized foreign-related laws and more than 90 administrative regulations, and a comprehensive dispute resolution structure has taken shape, with mediation as the first step, arbitration as the mainstay and litigation as the final safeguard.

The Supreme People's Court issued a document in September to promote the high-quality development of international commercial courts to support high-standard opening-up.

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

In practice, the advantages of the dispute resolution framework have become increasingly evident. The flexibility and efficiency of mediation has made it the preferred approach for resolving small-value cross-border commercial disputes. Arbitration, valued for its neutrality and enforceability, is the popular choice of international traders and investors for dispute settlement. The improvements in the mechanisms for ascertaining foreign laws and the introduction of innovative case management models have helped the international commercial courts offer authoritative judicial solutions for complex and challenging disputes.

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, expanding the use of international treaties and practices, and strengthening cooperation with organizations such as the United Nations Commission on International Trade Law and The Hague Conference on Private International Law.

It is the first legal document to systematically plan the coordinated development of international commercial courts at both the Supreme People's Court and local levels.

Accelerating the development of foreign-related rule of law and improving the dispute resolution mechanisms are not only practical responses to the evolving global landscape, but also essential for making China a preferred destination for international commercial dispute resolution.

The document issued by the court in September also clarified the pathway for connecting litigation, mediation and arbitration for international commercial dispute resolution. The aim is to form a "one stop shop" for justice.

Building on the progress achieved over the past five years, it is anticipated that a comprehensive and well-structured system of foreign-related laws and regulations, supported by robust law enforcement and judicial mechanisms, will take shape.

In emerging areas such as digital trade and the security of artificial intelligence-related supply chains, lawmaking is expected to accelerate significantly. A number of foreign-related commercial laws will be revised to include provisions with extraterritorial effect, further empowering China's legal framework in dealing with cross-border matters.

A regulation on commercial mediation is also likely to be introduced, unifying and improving the country's diversified dispute-resolution mechanisms. As for foreign-related law enforcement, a unified coordination mechanism will be established to clarify the division of responsibilities among different government departments, preventing conflicts and overlaps in enforcement.

A more diversified and internationally oriented dispute resolution mechanism that better serves reform and opening-up is expected to become the hallmark of China's achievements in establishing foreign-related rule of law.

By improving its legal framework and providing clear judicial precedents for international commercial disputes, China is not only providing stronger legal protection for its growing global business activities but actively working to enhance its credibility and appeal in the international commercial justice sphere and its contribution to global governance.