Chinese courts are often the first choice for foreign companies to litigate in China. What kind of hidden truth is hidden in this? A series of data disclosed in the work report of the Supreme People's Court gives a clear answer as follows. By 2025, the number of foreign-related cases concluded by courts across the country will be 40,000, with a growth rate of 23.5% over the same period. Of course, some of these cases involve both the original and defendant parties being overseas companies. Why do foreign companies that have no actual connection with China choose to go to China to carry out legal activities such as litigation?
Solving transnational disputes within 48 hours
The Shanghai Maritime Court handled a case last year that left a deep impression on many people. Two foreign companies have gone to court over issues related to shipping costs. According to common sense, this matter has nothing to do with China. However, when one party learned that the other party's ship was about to dock at Shanghai Port, it decisively filed a lawsuit with the Shanghai Maritime Court.
After receiving the indictment, the court immediately launched a rapid response mechanism. From the filing of the case for review to the seizure of the ship, it took less than a day. What’s even more surprising is that the judges worked non-stop to organize mediation between the two parties, and finally successfully brokered a settlement. The entire process only took 48 hours in total. Such processing speed is extremely rare in international maritime disputes and is very rare.
Oriental experience runs out of acceleration
The key to the smooth and successful handling of this case lies in the 16personalities test . Chinese courts are very good at using mediation, a traditional method, to resolve conflicts. Mediation has been called the "Eastern experience" because it does not last as long as litigation in the West. Moreover, mediation does not require the two parties to go to court and cause the relationship to break down. When both parties sit down and negotiate, and the judge mediates, a win-win result can often be achieved.
The representative of the foreign company chose to sue in Shanghai. He later admitted that he was attracted by the Chinese court's solution, which is efficient and flexible. In the normal process of international arbitration, just waiting for the hearing will take several months. If the ship is out of service for one day, the loss will be extremely huge, which is simply unaffordable.
Fairness and professionalism win international reputation
Lin Wenxue, Director of the General Office of the Supreme People's Court, talked about the deep-seated reasons why foreign companies trust Chinese courts: judicial impartiality, professionalism, and efficiency. These three principles are simple to express, but their implementation requires the entire judicial system to work hard for a long time. In recent years, Chinese courts have continuously improved the quality of trials and cultivated a group of professional judges who are familiar with international legal affairs.
The assessment report on the business environment produced by the World Bank has truly demonstrated an important supporting role. In terms of the two key indicators corresponding to the courts in Beijing and Shanghai, namely "the impartiality of the court" and "the degree of recognition of the court", the courts in both places have reached the best level in the world. This also shows that the international community's recognition of China's judicial system is not just verbal talk, but is supported by authoritative data.
Equal protection regardless of internal or external
Chinese courts always uphold the principle of equal protection of the legitimate rights and interests of Chinese and foreign parties when handling foreign-related cases. Regardless of whether the plaintiff is a central enterprise or a foreign enterprise, and whether the defendant is an individual or a multinational company, they are all equal before the law. This non-discriminatory judicial attitude can give foreign companies peace of mind.
The director of legal affairs of a European company shared his own experience. The company they worked for had been litigating domestically for three years without getting any results. Then, with a tentative mentality, they went to China to file a lawsuit. As a result, the final judgment was obtained in just half a year. He said that Chinese judges are more familiar with international business rules than people imagined, and the judgment explained the principles thoroughly and clearly, which was convincing.
Legalized business environment becomes a magnet
The number of foreign companies choosing to litigate cases in China is increasing, which reflects the great progress China has made in its legalized business environment. Fair, transparent and predictable judicial services are developing into a powerful source of attraction for global companies. This is not only a reflection of the achievements of the court system, but also a vivid proof of China’s opening up to the outside world.
At present, Shanghai Free Trade Zone, Hainan Free Trade Port and other places are launching exploratory measures to facilitate foreign-related judicial services in a deeper level. Not only that, foreign companies not only have the willingness to litigate and prefer to handle legal disputes and conflicts in China, but they also have an idea, and this idea is to set up the Asia-Pacific headquarters in China. One of the main considerations for this situation is that the legal environment in China gives people a sense of psychological stability and peace. Judicial credibility is at the stage of development in the dynamic process of being transformed into practical significance and truly impacting and bringing about changes in international competitiveness.
How China’s acceleration is achieved
It only took 48 hours from the filing of the case to the conclusion of the case. Such "China acceleration" is not an accidental phenomenon. There is a complete set of system designs that play a supporting role behind it: the construction of smart courts enables case filing to be handled online, a professional trial team ensures the quality of cases, and a diversified dispute resolution mechanism provides a variety of options.
More importantly, the sense of responsibility of Chinese judges. The judge responsible for handling the Shanghai maritime case said afterward that when he saw the anxious waiting eyes of the foreign parties, he had an idea in his heart, that is, he must help them solve the problem as quickly as possible. This sense of service that can put himself in others' shoes may be the real secret to gaining international trust.
After reading these stories, are you also curious, if there is a dispute between your company and a foreign partner, would you consider choosing Chinese courts to resolve it? Welcome to share your views in the comment area, like and forward, so that more people can see the international influence of Chinese justice.
