China's Supreme People's Court (SPC) has introduced comprehensive guidelines to enhance its international commercial courts, signaling a push to bolster legal certainty for foreign businesses amid deepening global economic integration. The 15-article framework emphasizes creating a "well-structured, fair, and efficient" system to resolve cross-border disputes, with measures to refine jurisdiction rules, streamline case management, and strengthen the application of foreign law and international treaties.
Wang Shumei, a member of the SPC adjudication committee, stated the reforms aim to position China as a preferred destination for resolving international commercial conflicts while fostering a "stable, transparent, and predictable" business environment. Since 2018, China has established two SPC-led international commercial courts in Shenzhen and Xi'an, alongside authorizing 16 intermediate courts nationwide to handle such cases.
In a parallel move, the SPC released its fifth batch of Belt and Road Initiative-related cases, offering legal clarity for complex transactions. One landmark ruling clarified that standby letters of credit with guarantee functions fall under Chinese independent guarantee rules, a decision expected to stabilize international financial dealings. Another case highlighted innovative solutions for evidence collection in an African infrastructure project, underscoring the courts' adaptability to cross-border challenges.
Legal analysts view these steps as part of China's broader strategy to strengthen the rule of law in global commerce. By systematizing judicial practices and collaborating with organizations like UNCITRAL and the Hague Conference, China seeks to enhance its credibility as a neutral arbiter in international trade disputes.
