BFIPC bolsters efforts to build preferred seat for international commercial dispute resolution

On May 29, the Beijing Fourth Intermediate People's Court (BFIPC) held a circuit hearing at the Beijing International Arbitration Center for a case in which a foreign company applied to cancel an arbitral award rendered by the China International Economic and Trade Arbitration Commission.

Conducting judicial review of foreign-related arbitration in accordance with the law is a key pillar for improving the international commercial dispute resolution system and building a preferred seat for resolving international commercial disputes.

In this case, the applicant, a foreign company, and the three respondents, all Chinese companies, had a dispute arising from the performance of a joint venture contract. The arbitral tribunal ruled that the foreign company should pay 471 million yuan ($69.67 million) in damages. Dissatisfied with the award, the foreign company applied for cancellation.

During the hearing, the collegial panel focused on the key points of dispute and organized all parties to fully present their arguments, provide and cross-examine evidences, and engage in debate, ensuring equal protection of the litigation rights of both sides.

The case will be decided at a later date.

Wang Xi, Zhu Yuhua and Yu Chen, deputies to the Beijing Municipal People's Congress, along with representatives of arbitrators, business representatives and students from China University of Political Science and Law, totaling more than 80 people, attended the hearing.

After the hearing, Ma Jun, president of the Beijing International Commercial Tribunal (BICT), gave a presentation on judicial innovation and practical exploration by the tribunal in building Beijing into an International Demonstration Zone for Integrated Legal and Commercial Services.

He gave an overview of the BICT’s case handling work, its institutional exploration in addressing challenges in foreign-related commercial trials, innovation in case management to improve quality and efficiency, measures to support the drive to build Beijing into an International Demonstration Zone for Integrated Legal and Commercial Services and an International Commercial Arbitration Center, and efforts in cultivating foreign-related legal professionals.

During the Q&A session, Ma answered questions raised by students at the event on topics such as international commercial dispute resolution and judicial review of foreign-related arbitral awards, and offered practical suggestions.

Li Yingxin, vice-president of the BFIPC, said at the event that the court will continue to focus on the strategic positioning of Beijing's development in the new era, fully leverage the demonstrative effect of circuit trials, support and supervise the development of arbitration in accordance with the law, and continuously improve the foreign-related commercial trial mechanism and the judicial review mechanism for arbitration, so as to provide solid and powerful judicial guarantees for the capital's high-level opening-up and high-quality development.

What deputies say

Wang Xi

Deputy to the Beijing Municipal People's Congress

General Manager, Guoxi Fenghuang (Beijing) Cultural Development Co Ltd

The circuit trial of the BICT demonstrates the firm commitment of courts in Beijing to serving the overall development agenda of the country. By explaining the law and analyzing legal principles through specific cases, they help enterprises better identify and assess legal risks. This approach is grounded in reality, benefits businesses and serves long-term interests.

Zhu Yuhua

Deputy to the Beijing Municipal People's Congress

Technical Director, Beijing Shouzi New Energy Technology Co Ltd

This circuit trial by the BICT reflects the equal protection of the legitimate rights and interests of both Chinese and foreign parties by courts in Beijing, greatly enhancing enterprises' confidence in the rule of law when exploring overseas markets. I hope that the BICT will pay more attention to the judicial needs of strategic emerging industries such as new energy, providing more targeted legal guidance to help enterprises achieve stable and long-term success.

Yu Chen

Deputy to the Beijing Municipal People's Congress

Secretary of the Joint Party Branch and Partner, Beijing Heda Law Firm; Supervisor at the Beijing Lawyers Association

The circuit trial of the BICT was professional and impartial, and rigorous in procedure. I hope that the BICT will continue to leverage its unique advantages, persistently promote the optimization and development of a law-based business environment in Beijing and provide a solid rule-of-law guarantee for the capital's higher-level opening-up.