Shanghai a hot hub for addressing intl commercial disputes

Shanghai, a leading city in China for global commerce, has made significant progress in becoming a preferred hub for resolving international commercial disputes, senior officials from the city's courts said.

According to a recent business ranking by the World Bank, Chinese courts ranked second in public recognition and third in perceived fairness among 103 global economies.

As Shanghai was the sole city on the Chinese mainland representing the country in the ranking, it marked a major breakthrough in the city's efforts to establish itself as a premier destination for international commercial dispute resolution, said Lu Weimin, deputy secretary of the Party leadership group and vice-president of the Shanghai High People's Court, during a media interview on Monday.

Shanghai courts have consistently improved the quality and efficiency of foreign-related commercial trials, Lu said. The courts provide equal protection for the legal rights of both domestic and foreign investors, offering strong judicial support for high-level openness in foreign trade, he added.

The city has developed a specialized framework for foreign-related trials, featuring designated courts, specialized adjudication bodies and professional judges, which has significantly enhanced the jurisdictional appeal of its courts.

Established in December, the Shanghai International Commercial Court serves as a core platform for resolving international commercial disputes. In the first three quarters of 2025, the court handled 1,600 cases involving foreign commercial disputes and arbitration judicial reviews, with a total disputed amount exceeding 21.5 billion yuan ($3.02 billion). Parties involved came from 39 countries and regions.

In one notable case in February, the court efficiently resolved an application for recognition and enforcement of a Mongolian arbitration award within 39 days, accurately delineating the relationship between the New York Convention and bilateral treaties. The case was recognized as a typical example involving the Belt and Road Initiative by China's Supreme People's Court.

To enhance its professional adjudication capabilities, the court established an international commercial expert committee, initially appointing 20 high-level experts, including eight from overseas. The committee provides intellectual support for resolving major disputes.

The Shanghai Maritime Court has also seen an increase in the number of cases, with 544 first-instance maritime cases accepted in the first three quarters of 2025 based on parties' jurisdiction agreements, marking a nearly 20 percent increase.

In terms of rulemaking, seven cases from Shanghai courts have been included in the official case database of the United Nations Commission on International Trade Law, providing a Chinese model for the accurate application of international conventions.

For instance, the Shanghai International Commercial Court concluded the country's first case referencing a document of the UN Convention on Contracts for the International Sale of Goods in February, contributing a Chinese example for the global uniform application of the convention.

Shanghai courts have also excelled in the digitalization of cross-border litigation services.

The Shanghai International Commercial Court has achieved a 100 percent electronic service rate for newly filed cases, with online hearings used in nearly 80 percent of them.

The Shanghai Maritime Court explored a mechanism of comprehensive authorization for overseas litigation entities, which has been applied in 400 cases and reduced average processing time by about 30 days and litigation costs by nearly 10,000 yuan per case.

Werner Schuppisser, a Swiss national and cofounder of a company bringing Swiss ice cream to Shanghai, was involved in lawsuits last year when his partner sought to dissolve the firm and reclaim investment. He said Shanghai's Jing'an district court patiently organized meetings to facilitate negotiation and helped resolve the dispute.

That effort eventually saved the company, which has since expanded with new ice cream stores opening in Beijing, Chongqing, Chengdu in Sichuan province and Shenzhen in Guangdong province.

"Through this litigation, I feel that the Shanghai judges are not only professional but also efficient and impartial. That provides a business environment that allows my firm to continue to grow, and for our employees and customers to feel safe," said Schuppisser, who has been working and living in Shanghai for more than two decades.