Courts to be preferred place for foreign disputes

China's top court has reiterated its commitment to enhancing the quality and efficiency of handling commercial and maritime cases involving foreign parties, pledging to establish the country as a preferred destination for settling international business disputes.

In a statement issued on Thursday, the Supreme People's Court highlighted six noteworthy cases involving foreign litigants, calling on judges nationwide to strengthen efforts to deliver high-level openness and advance the high-quality development of the maritime sector.

These cases featured litigants from eight countries, including Singapore, Bangladesh, Chile and Switzerland, with some instances where the foreign entities voluntarily chose Chinese courts to resolve their commercial matters.

One case involved a vessel owned by a Turkish steelmaker. On July 13, 2022, a Singaporean shipping company issued a bill of lading, stating that the vessel would transport 240 bags of chemical products from China to a port in Chile for a Chilean agricultural company. On Oct 15 that year, during the unloading process at the destination port, the vessel's cargo hold flooded, resulting in damage to onboard goods.

In response, the Chilean company filed a lawsuit with the Dalian Maritime Court in Liaoning province, seeking over $90,000 in compensation for the loss of the goods and other associated expenses from the involved Turkish and Singaporean corporations. Both defendants also expressed their desire for the dispute to be resolved by the Chinese judiciary.

After learning about the efficient mediation system in China, all three parties agreed to resolve their dispute using this modality. Soon, they reached a settlement, and the Chilean company withdrew the lawsuit.

"In this case, with all three parties hailing from abroad and opting for a Chinese court to adjudicate their conflict, it has truly underscored the trust and acknowledgment that foreign litigants place in China's maritime judicial system," the top court said.

"The resolution of the case has also demonstrated the strength of the Chinese judiciary, helping our country to establish itself as a preferred venue for addressing international business issues," it added.

In another case that took place in July 2021, a Chinese vessel was involved in a collision with a Panamanian-flagged ship managed by a company from the Marshall Islands at a port in Indonesia, leading to damages on the Chinese side.

Subsequently, the Chinese party filed a lawsuit against the Marshall Islands management company at the Ningbo Maritime Court in Zhejiang province, demanding more than $1.6 million for the damaged vessel's repair, delayed voyage time and fuel losses.

"It was a maritime lawsuit related to countries involved in the Belt and Road Initiative. Under international conventions and Chinese laws, Indonesia, Singapore and China all have jurisdiction over the maritime collision dispute," said the top court.

"After negotiations, the foreign litigant in the case also agreed to turn to the Chinese court to resolve the dispute according to Chinese laws, showcasing the international credibility and influence of the Chinese maritime judiciary," it said.

While reaffirming the importance of providing equal protection to litigants from both home and abroad, it has also mandated judges to continue optimizing legal services for foreigners — such as online mediation — to improve judicial efficiency and reduce costs of dispute resolution.

caoyin@chinadaily.com.cn