A cross-border dispute resolution mechanism for Belt and Road

Since President Xi Jinping advocated the establishment of the Silk Road Economic Belt and the creation of a 21st Century Maritime Silk Road, numerous countries and international organizations around the globe have been actively participating in the development of the Belt and Road initiative.

The description of “travelling merchants as far as the eye could see” along the Silk Road in historical texts still causes a welling of emotions when looking back on history, but the Silk Road has long ceased to be the sight of old. With the passage of time, major differences have arisen in various fields in the countries along the Belt and Road. In terms of legal systems, the countries along the Belt and Road mainly divide into the common law system and civil law system, with some countries in the Middle East still following Sharia. In other words, the promotion of the Belt and Road initiative faces a very complex legal environment. “Close cooperation and achieving win-win” is undoubtedly the common vision of the great majority of Chinese and foreign enterprises and local governments when they first plunge into the development of the Belt and Road, but the huge discrepancies in economic development, social systems, cultural backgrounds as well as religious beliefs determine that disputes among parties over commerce, trade, investment and taxation are unavoidable.

For lawyers who engage in foreign-related business, particularly foreign-related lawyers backed by a global legal network, providing legal services to Chinese enterprises involved in disputes on the strength of their knowledge, skills and practice strengths is an ideal opportunity to demonstrate their skill, and also an unshirkable social responsibility. However, it is undeniable that the shadow of a heavy feeling of helplessness often hovers over the handling of many cases. We of course do not wish that enterprises going global with enthusiasm and hope find that the outcome is not as anticipated, and return home with their heads bowed down. However, if it is because we fail to create a sound and effective cross-border dispute resolution method early on to safely escort the development of the Belt and Road, we should not criticize enterprises that freeze at the earliest hint of trouble.