Belt and Road Initiative (BRI) Dispute Resolution

The Belt and Road Initiative (“BRI”), launched by China in 2013, has significantly expanded global infrastructure and economic development projects. With its vast scale and international scope, the BRI has given rise to complex legal disputes. To address these, China has established various mechanisms and frameworks, primarily through the China International Commercial Court (“CICC”) and the China International Economic and Trade Arbitration Commission (“CIETAC”).

The China International Commercial Court (CICC)

The CICC was established in June 2018 to provide a dedicated platform for resolving international commercial disputes arising from the BRI. As part of the Supreme People’s Court (SPC), the CICC has jurisdiction to handle complex, high-value cases with cross-border elements.

Jurisdiction and Procedure

The CICC is designed to handle major international commercial cases, including those related to trade, investment, finance and intellectual property. It offers a streamlined procedure that combines judicial proceedings with arbitration and mediation, providing a one-stop solution for dispute resolution. This hybrid approach is intended to expedite the resolution process and reduce costs for the parties involved.

To enhance efficiency and accessibility, the CICC employs advanced technologies such as electronic case filing, virtual hearings and digital evidence submission. These innovations facilitate smoother and faster proceedings, especially for parties located in different countries.

China International Economic and Trade Arbitration Commission (CIETAC)

CIETAC is one of China’s oldest and most prestigious arbitration institutions, with extensive experience in handling international disputes. It has become a preferred forum for resolving BRI-related disputes due to its expertise and reputation for impartiality and efficiency.

BRI-Specific Rules and Services

To better serve BRI projects, CIETAC has developed specific arbitration rules tailored to the needs of international stakeholders. These rules incorporate features such as emergency arbitration, expedited procedures and provisions for multi-party and multi-contract disputes, which are common in large infrastructure projects.

Emergency Arbitration: This allows parties to seek urgent interim relief before the constitution of the arbitral tribunal. For instance, if a BRI project faces an immediate threat that could cause irreparable harm, a party can request emergency measures to protect its interests.
Expedited Procedures: These are designed to shorten the duration of arbitration proceedings for less complex cases. For example, disputes involving smaller claims or straightforward issues can be resolved quicker, reducing costs and duration.
Multi-Party and Multi-Contract Disputes: BRI projects often involve numerous parties and multiple contracts. CIETAC’s rules provide mechanisms to handle such complexities. For example, the consolidation of related disputes and joint hearings ensures efficient and convenient dispute resolution in relation to large infrastructure projects where several contracts and stakeholders are interconnected.

International Cooperation

CIETAC has expanded its presence globally by establishing sub-commissions across Hong Kong, Vancouver and Vienna as well as co-operation agreements with foreign arbitration institutions such as the Singapore International Arbitration Centre (SIAC), Saudi Center for Commercial Arbitration (SCCA), Permanent Court of Arbitration (PCA), German Institution of Arbitration (DIS) and many others. This international network facilitates the enforcement of CIETAC awards in multiple jurisdictions, providing greater certainty and finality for parties involved in BRI projects.

China has also signed numerous bilateral and multilateral agreements to enhance judicial co-operation and mutual recognition of judgments and arbitral awards. These agreements are crucial in ensuring decisions made by the CICC and CIETAC are enforceable across borders, thereby strengthening the legal framework supporting the BRI.

Conclusion

The BRI has catalysed the development of robust dispute resolution mechanisms in China, spearheaded by the CICC and CIETAC. These institutions, with their specialised rules, technological advancements and international networks, provide comprehensive and efficient solutions for complex disputes arising from the BRI. As the initiative continues to expand, these mechanisms will play an increasingly vital role in maintaining legal certainty and fostering international co-operation.