Beijing Fourth Intermediate People's Court: The 'Oriental Flower' on the Stage of International Business Dispute Resolution
2024-10-16
The Third Plenary Session of the 20th Central Committee of the Communist Party of China has made significant arrangements to strengthen the construction of foreign-related rule of law, requiring the establishment of a working mechanism that integrates foreign-related legislation, law enforcement, judiciary, compliance with the law, legal services, and the cultivation of legal talents, and the improvement of international commercial arbitration and mediation systems. How to better serve the construction and high-level opening-up of Beijing's "two zones" (National Service Industry Expansion and Opening up Comprehensive Demonstration Zone and China (Beijing) Pilot Free Trade Zone) in resolving foreign-related commercial disputes? How to promote the functional construction of Beijing International Science and Technology Innovation Center and International Exchange Center through diversified dispute resolution? In 2021, the Beijing Court's one-stop diversified dispute resolution center for international commercial disputes and the Beijing International Commercial Court were successively established in the Fourth Intermediate People's Court of Beijing. Here, the "Fengqiao Experience" of the new era is flourishing in the resolution of international commercial disputes, and the influence and competitiveness of the mediation and resolution mechanism for foreign-related commercial disputes have significantly improved. Chinese and foreign parties have a better sense of experience, security, and gain in litigation activities. We need to take more reform and innovation measures, deeply adhere to and develop the 'Fengqiao Experience' of the new era, strive to tell the story of China's rule of law with exquisite business skills and high-quality judicial products, spread the voice of China's rule of law, and wholeheartedly nurture the 'flower of the East' of mediation, so that it can bloom brilliantly on the international commercial dispute resolution stage Director of Beijing Fourth Middle School, Shan Guojun, stated. ● Providing high-quality and efficient judicial services for the joint construction of the "the Belt and Road". After China put forward the "the Belt and Road" initiative, many state-owned enterprises have participated in the construction of key projects in Africa. Many of these projects have long contract performance cycles and frequent transactions, which inevitably lead to friction and disputes. Let go of the previous conflicts and hope we have a pleasant cooperation in the future In December 2022, at the Beijing International Commercial Court, two enterprises involved in the "the Belt and Road" construction project resolved years of disputes under the auspices of judges. Both sides took a step back and shook hands to make peace. The two companies are in a partnership and participated in the construction of a large-scale hydropower project in Botswana, southern Africa a few years ago. After the project was completed and put into use, in 2021, there was a dispute between the two parties regarding the issue of excessive noise from mechanical and electrical equipment and the payment of contract payments, with a total amount of nearly 60 million yuan involved in the case. When the lawsuit was brought to the Fourth Intermediate People's Court, the conflict had been ongoing for several years, involving complex professional and technical appraisal issues. Our two companies have different demands, and our relationship has reached a stalemate. Moreover, this is a 'going global' project, and we hope to resolve the dispute as soon as possible Ms. Liu, a legal representative of one of the companies, admitted frankly. Mei Yu is a senior judge in the field of foreign-related commercial trials at Beijing Fourth Intermediate People's Court. After the case was accepted, she organized multiple rounds of evidence exchange between the two parties on professional technical issues such as excessive noise, and used her bilingual advantage to contact and search for technical information in both Chinese and English to analyze the causes of product problems. But the case involves overseas appraisal, which is difficult to operate, time-consuming, and may not necessarily lead to a definite conclusion. After an overall analysis, Mei Yu proposed a solution: "Instead of holding on, sit down and study. If the crux lies in technical problems, you can achieve long-term development by working together to tackle technical problems." Mei Yu suggested that the two enterprises should focus on serving the "the Belt and Road" initiative, with the goal of improving the image of Chinese enterprises abroad, debug and update equipment involved in the case, jointly tackle technical problems, and continue to promote follow-up cooperation to achieve win-win results. With the mediation of the court and after multiple rounds of negotiations, the relationship between the two companies gradually improved, and the previous grievances were finally resolved. Not only did they reach a comprehensive mediation plan for the case, but they also reached a consensus on continuing to deepen cooperation. In January 2023, the mediation agreement was fulfilled, and the two companies joined hands to send banners: "Sincere mediation helps companies set sail, skilled in resolving disputes and settling disputes. This is the voice of our two companies, and we are very grateful to the judges!" "The judges of the Beijing International Commercial Court are not only professional but also experienced in resolving foreign-related disputes. They are not only familiar with various international conventions and practices, but also able to accurately apply foreign laws." This is the evaluation of many foreign-related companies for the judges of the Beijing International Commercial Court. This case is a microcosm of the mediation and resolution of over a thousand international commercial disputes by Beijing Fourth Intermediate People's Court in recent years. Since the centralized jurisdiction over foreign-related commercial disputes in 2018, nearly 700 commercial cases involving countries and regions along the "the Belt and Road" have been concluded in the Beijing International Commercial Court, with a total amount of more than 8 billion yuan. Among them, the rate of dispute resolution through mediation reached 40.63%, and the amount of settlement was more than 500 million yuan, saving 42% of the parties' dispute resolution time on average. The linkage of "establishment, review, enforcement, investigation, and arbitration" realizes one-stop international commercial dispute resolution. Judicial review cases of foreign-related arbitration involving Hong Kong, Macao, and Taiwan within the scope of Beijing, as well as foreign-related arbitration preservation and enforcement cases, are currently accepted by the Beijing Fourth Intermediate People's Court. How to effectively integrate arbitration and judiciary and improve diversified dispute resolution? How to achieve one-stop resolution of commercial disputes? The Fourth Intermediate People's Court has continuously explored the "Beijing experience" in diverse dispute resolution practices. I completely trust the Chinese courts, as well as the judges and mediators In April of this year, John, the executive director of Chenlong Company, told the judge after agreeing to bring his equity dispute to the Beijing Court International Commercial Dispute One Stop Multi Dispute Resolution Center for resolution. This case was originally an application by a foreign company to the court for the enforcement of an arbitration award. Ten years ago, Chenlong Company on the other side of the ocean partnered with Shengda Company in Beijing to establish a company, holding 20% and 80% equity respectively in the target enterprise. A few years later, Chenlong Company intended to transfer its equity holdings and signed a "Memorandum of Equity Transfer" with Shengda Company, but the memorandum was not actually implemented. After Chenlong Company applied for commercial arbitration, the China International Economic and Trade Arbitration Commission made a ruling based on its request, confirming that Shengda Company had acquired 20% equity of the target company held by Chenlong Company for more than RMB 70 million. Shengda Company immediately changed its equity registration, and Chenlong Company, which had not yet received the equity transfer payment, applied for compulsory enforcement to Beijing Fourth Intermediate People's Court in January this year. However, this arbitration award is a confirmation of the equity transfer price and does not have any payment content, so it also does not have any enforcement content. The Beijing Fourth Intermediate People's Court can only reject the enforcement application. Normally speaking, since the case has reached this point, Chenlong Company needs to initiate arbitration again to clarify its request in order to obtain the equity transfer payment. The 10-year equity transfer dispute seems to have returned to the starting point. The equity has been transferred, but the money cannot be obtained. "John, who was on the other side of the ocean, felt extremely anxious. The case remains unresolved, and what both parties need is an efficient and substantive resolution of conflicts. After learning about the convenient policy of Beijing Fourth Intermediate People's Court's one-stop international commercial dispute resolution from the executing judge, both parties jointly chose in writing to have the Beijing Court's one-stop diversified dispute resolution center mediate the dispute. With the help of Assistant Judge Wang Yuanzhe and specially invited mediators Xie Dan and Wang Xuemin at the Dispute Resolution Center, both Chinese and foreign parties overcame the difficulties of time difference and language, and untied the long-standing grievances. In response to the foreign exchange barriers, tax difficulties, drafting and signing of equity transfer agreements, and trust restoration issues that arose during the mediation process between the two parties, relying on the specialized working mechanism of the Beijing International Commercial Court, the Executive Bureau of the Fourth Intermediate People's Court and the Dispute Resolution Center jointly extended their judicial functions, actively communicated and coordinated with tax, banking, foreign exchange management and other departments, and determined a remittance plan. In May of this year, under the supervision of a mediator and witnessed by a judge, a mediation agreement was signed between the Chinese and foreign parties. In June, less than an hour after the Beijing Fourth Intermediate People's Court issued and delivered the judicial confirmation ruling, more than 70 million yuan of equity transfer funds were transferred to the designated account of Chenlong Company. From importing into the dispute resolution center to implementing remittance, this 10-year equity dispute was properly resolved in just two months. Since its establishment in early 2021, the Beijing Court International Commercial Dispute One Stop Multi Dispute Resolution Center has built a one-stop multi dispute resolution center that integrates international commercial dispute litigation, mediation, and arbitration for both Chinese and foreign parties, relying on the "People's Court Mediation Platform" and the "Beijing Court Sub mediation and Arbitration Integrated Platform". As of now, the center has mediated a total of 316 international commercial disputes, with a total mediation amount of approximately RMB 9 billion. The amount of successfully mediated cases exceeds RMB 830 million, and the average processing time for mediation cases is only 28.4 days, exploring a new path for diversified resolution of international commercial disputes. Institutionalized expansion of dispute resolution capabilities and diversified dispute resolution "circle of friends". Foreign commercial mediation cannot be separated from professional mediation capabilities. In recent years, Beijing Fourth Intermediate People's Court has actively absorbed mediation organizations and mediators from different levels, industries, and fields, and joined the Beijing Court's one-stop diversified dispute resolution center for international commercial disputes. It has closely cooperated with well-known mediation organizations such as the International Commercial Dispute Prevention and Resolution Organization, the China Council for the Promotion of International Trade Mediation Center, the Beijing Association for the Promotion of Diversified Mediation Development, and the Beijing Taiwan related Commercial Dispute Mediation Center to continuously cultivate dispute mediation resources. Ms. Lin, who lives in Taiwan, China, once jointly invested with a mainland company to operate a foreign education brand's training business in China. However, during the cooperation period, the mainland company also promoted competitive courses with others. Ms. Lin's interests were damaged, and in November 2022, she sued Beijing Fourth Intermediate People's Court. After communication, Ms. Lin agreed to mediate the case first, and the dispute resolution center will introduce the case to the Beijing Taiwan related Commercial Dispute Mediation Center, and entrust Taiwanese mediator Chen Jianhong to mediate. "In view of the possibility of pre litigation mediation in this case, the court assigned me to deal with this case. In fact, the dispute between the two parties is not as big as expected. We still need to protect the interests of both parties in seeking common ground while reserving differences. I think this is the biggest purpose of mediation." As the "old lady uncle" of Taiwanese compatriots, Chen Jianhong has also obtained the qualification of a lawyer in mainland China, and assigning him to mediate can greatly reduce the time and economic cost of resolving disputes for the parties involved. During the mediation process, in order to avoid the parties running back and forth, the judge of Beijing Fourth Intermediate People's Court directly went to the mediation center to guide the work of the mediator. In December 2022, the court and the mediation center jointly facilitated the conclusion of the mediation agreement. The fast track trial team of Beijing Fourth Intermediate People's Court also efficiently issued a judicial confirmation ruling on the mediation agreement using the "night convenience court". The most touching thing for me is that the judge did the judicial authentication on the same day. This is not just a lecture, nor does it mean that the mediation is over. I am very grateful for the whole process, which made me feel protected and the entire process was very efficient. "Ms. Lin, who received the ruling, expressed her gratitude. In another case, both the plaintiff and defendant are from Hong Kong. In September 2023, both parties proactively applied to the dispute resolution center to handle disputes arising from loans. The dispute resolution center selected experienced mediators to carry out mediation work. On the second day after receiving the litigation materials, the mediators facilitated a handshake and signed a mediation agreement between the two parties. Shortly afterwards, the dispute resolution center received two banners from the parties involved. I never expected that my dispute would be resolved within a few days of my business trip to Beijing. I am truly grateful to the judges and mediators of the People's Court for demonstrating the 'Chinese speed' of commercial dispute resolution. As of now, there are a total of 5 people from France, Germany, Australia, Brazil, and Saudi Arabia
Edit：Sun Jia Bin Responsible editor：Li Yi
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