Dispute resolution under the Belt and Road Initiative

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Dispute Resolution under the Belt and Road Initiative refers to the legal mechanisms used to address conflicts arising from China's Belt and Road Initiative (BRI) projects across different jurisdictions.

Contents

The Belt and Road Initiative, launched in 2013, operates through bilateral agreements and soft law instruments rather than a unified legal framework. This creates challenges for consistent dispute resolution as projects span diverse legal systems with varying enforcement capabilities. [1]

China International Commercial Court

To provide judicial support for the BRI, the Supreme People's Court of China launched the China International Commercial Court (CICC) in June 2018, with two seats located in Shenzhen and Xi'an. A local international commercial court was also established in Suzhou in 2020. The CICC is structured as a circuit court of the Supreme People's Court, and its decisions are final and not subject to appeal, although retrial is possible before another tribunal within the same institution. This structure reflects an effort to create a high-level judicial forum dedicated to international disputes connected with the BRI.

The CICC has several notable characteristics that distinguish it from other Chinese courts. Panels are composed of Supreme Court justices with expertise in international treaties, trade, and investment. These judges must be capable of working in both Mandarin and English, though all proceedings are conducted in Mandarin and legal representation is restricted to Chinese-qualified lawyers. Unusually for the Chinese legal system, the CICC allows the inclusion of dissenting opinions in its judgments, a measure intended to promote judicial transparency and bolster international confidence in its rulings. Procedural innovations include the option for parties to submit evidence in English without translation if the other side consents, as well as the use of remote technology for hearings, oral testimony, and evidence-taking. Another distinctive element of the CICC is its reliance on the International Commercial Expert Committee. This body, composed of both Chinese and foreign legal experts, assists judges in ascertaining foreign law, presides over mediations, and advises on judicial interpretation. Given the difficulty Chinese courts have traditionally faced in applying foreign law, the CICC also launched a foreign law ascertainment platform in 2019 to support courts, counsel, parties, and other institutions in identifying and applying non-Chinese legal rules. [2]

Arbitration

Arbitration is widely regarded as the most common mechanism for resolving disputes in BRI projects. It is favored for its neutrality, confidentiality, flexibility, and broad enforceability under the New York Convention, to which most BRI countries are signatories.

Key considerations in BRI arbitration include the choice of the seat of arbitration and the enforceability of awards. Although Chinese cities such as Beijing, Shanghai, and Shenzhen have become increasingly popular as arbitration seats, many parties continue to select neutral, arbitration-friendly jurisdictions such as London, Singapore, and Hong Kong. Enforcement of arbitral awards in China is generally supported by the courts, which rarely refuse recognition of foreign awards. However, enforcement in some other Belt and Road jurisdictions can be uncertain, depending on local legal systems and judicial practices. [3]

More than 40 African countries have formally joined the initiative, with projects ranging from railways and ports to energy and digital infrastructure. The China-Africa Joint Arbitration Centre (CAJAC) was established to provide a regionally grounded dispute resolution mechanism for Belt and Road projects involving Chinese and African parties. CAJAC operates multiple regional branches, including an office in Johannesburg under the auspices of the Arbitration Foundation of Southern Africa (AFSA). [4] [5]

Mediation

Mediation has emerged as a key mechanism for resolving commercial disputes arising from BRI projects. In China, mediation has a long tradition, including people’s mediation, judicial mediation, administrative mediation, and arbitration-linked mediation (arb-med). International frameworks such as the Singapore Convention on Mediation have strengthened the enforceability of mediated settlement agreements across borders, supporting cross-border BRI dispute resolution. China has also established specialized international commercial mediation institutions, as part of its “one-stop” diversified dispute resolution mechanism, and developed online mediation platforms to facilitate settlements in infrastructure, energy, and trade projects. [6]

In April 2025, the International Commercial Dispute Prevention and Settlement Organization (ICDPASO) opened its new global headquarters in Beijing, strengthening its role in handling cross-border commercial disputes. Established in 2020 by the China Council for the Promotion of International Trade, ICDPASO is the first non-governmental international organization in China to combine dispute prevention, mediation, and arbitration services for businesses. Jointly founded with the China Chamber of International Commerce and institutions from over 40 countries, the organization provides guidance and services for commercial and investment disputes, helping parties resolve conflicts efficiently before or after they escalate, with its case resolution volume growing by about 60 percent annually. [7]

References

  1. Ibrahim, Imad Antoine (2025). "China's Belt and Road Initiative is Not a Novel Approach to International Law-Making". Asian Journal of Law and Society: 1–18. doi:10.1017/als.2025.4 . Retrieved 25 September 2025.
  2. Pham, Hansel (4 March 2021). "The China International Commercial Court". White & Case. Retrieved 25 September 2025.
  3. Fei, Jia (Jessica); Du, Zhuonan (Joanna) (12 August 2025). "Construction arbitration in China's Belt and Road projects". Global Arbitration Review. Retrieved 25 September 2025.
  4. Bhaumik, Amiya; Ghosh, Amrita; Bin Mohd Satha, Shaharuddin; Mohammed, Suleiman Bala; Alao, Murthado M. (14 September 2025). "Promoting the China-Africa Joint Arbitration Center for Safeguarding the Belt and Road Initiative". Advances in Consumer Research. 4: 3742–3748.
  5. Lahri, Sa'ood (July 2025). "A spotlight on arbitration in South Africa". Norton Rose Fulbright. Retrieved 25 September 2025.
  6. Zhang, Sheng; Ma, Yanfei; Wang, Chaoen (11 July 2025). "Promoting the modernization of China's commercial mediation regime in the context of the Singapore Convention on Mediation". Asian Journal of Comparative Law: 1–35. doi:10.1080/10192557.2025.2493693.
  7. Xinhua (16 April 2025). "New global headquarters for int'l commercial dispute resolution body opens in Beijing" . Retrieved 25 September 2025.