China News Agency, Guangzhou, November 6th, title: Guangdong, Hong Kong and Macao promote the connection of legal rules to create an international "arbitration-friendly" jurisdiction

　　Author Fang Weibin called Qing

　　The Guangdong-Hong Kong-Macao Greater Bay Area is developing vigorously, and foreign economic exchanges are increasingly frequent. Guangdong, Hong Kong and Macao are constantly promoting the convergence of laws and regulations to escort economic development.

　　Recently, the Supreme People's Court reported to the Standing Committee of the 13th National People's Congress on foreign-related trial work, and mentioned Guangdong courts six times, covering extraterritorial law identification, online authorization witnesses, and cross-border commercial dispute mediation.

Shenzhen Qianhai Court invited Hong Kong legal experts to appear in court.

Photo courtesy of Guangdong High Court

　　The reporter learned from the Higher People's Court of Guangdong Province (hereinafter referred to as "Guangdong Higher Court") on the 6th that from 2019 to 2021, the courts of Guangdong Province have concluded more than 55,000 first-instance civil and commercial cases involving Hong Kong, Macao and Taiwan, of which more than 14,300 were foreign-related. There are more than 30,800 cases involving Hong Kong, more than 4,700 cases involving Macao, and more than 5,500 cases involving Taiwan.

Explore the convergence of rules between Guangdong, Hong Kong and Macau

　　"According to the "Legal Opinion" submitted by the plaintiff and issued by the Hong Kong lawyer and the judgment of the Hong Kong High Court, the defendant was ordered to pay the plaintiff a principal of US$1.164 million and an interest of US$10,100." Qu Dexiong, the judge who handled the case, said.

　　This is the scene of the Shenzhen Qianhai Cooperation Zone Court (hereinafter referred to as "Qianhai Court") hearing a loan case for cross-border financial disputes.

Judge Qu Dexiong reviewed the validity of the contract under Hong Kong law, the calculation of principal and interest and other issues in accordance with the "Measures for the Identification of Extraterritorial Laws" formulated by the Qianhai Court.

　　The example of Qianhai Court is a microcosm of Guangdong's promotion of the convergence of rules between Guangdong, Hong Kong and Macau.

　　The relevant person in charge of the Guangdong Higher Court stated that in recent years, the Guangdong Higher Court has issued relevant opinions to explore allowing foreign-funded, Hong Kong, Macao and Taiwan-funded enterprises registered in the Guangdong-Hong Kong-Macao Greater Bay Area to agree to apply Hong Kong and Macao laws to resolve disputes if there are no foreign-related factors. .

Creating an international "arbitration-friendly" jurisdiction

　　In the report on foreign-related adjudication made by the Supreme People's Court, the case of an American company's application for recognition and enforcement of an arbitration award of the International Chamber of Commerce's Arbitration Court heard by the Guangzhou Intermediate People's Court is of significant significance.

　　In 2010, a trading company in Guangzhou signed a contract for the sale of engineering equipment with a company in the United States, and stipulated that if a dispute arises during the performance of the contract, if the two parties fail to negotiate, it will be submitted to the International Court of Arbitration of the International Chamber of Commerce headquartered in Paris, France. Arbitration will be conducted in Guangzhou where the project is located.

　　After comprehensive consideration, the Guangzhou Intermediate People's Court finally made an award on August 4, 2020, with reference to the international key factors regarding the seat of arbitration as the basis for determining the basis of an arbitral award, and with reference to international practices.

　　"This case is the first time that an arbitral award made by an overseas arbitration institution in mainland China is recognized as a foreign-related arbitral award in China, which is of symbolic significance for the opening up of China's arbitration business and the development of arbitration internationalization," said Xu Yubao, the presiding judge of the case.

　　Xu Yubao said that this case confirmed for the first time that an arbitral award made by an overseas arbitration institution in mainland China can be directly applied for enforcement in the mainland, which has established an image of an “arbitration-friendly” jurisdiction for China.

Strengthening litigation services for cases involving Hong Kong and Macao

　　In the past, Hong Kong and Macao parties entrusted litigation representatives to sign a power of attorney under the witness of a mainland judge, or go to a notary public for notarization, or invite Hong Kong and Macao lawyers to witness. It usually takes about 30 days, which is time-consuming, labor-intensive and expensive.

The appointment ceremony of specially invited mediators for cross-border commercial disputes in the Guangdong-Hong Kong-Macao Greater Bay Area by the Guangdong Court.

Photo courtesy of Guangdong High Court

　　The reporter learned that the Guangdong Court will comprehensively upgrade the "AOL Authorized Witnessing Pass" system starting in March 2021, and the service objects will also extend from Hong Kong and Macao to the world.

The platform shortens the period of witnessing by a litigation agent offline by foreign parties from about 30 days to 5 minutes, and the cost is reduced from RMB 300 to RMB 5,000 to zero cost.

　　Up to now, Guangdong courts have handled online entrusted witness procedures for 1,743 foreign parties in 15 countries and regions, greatly reducing the litigation costs of the parties.

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