The Wuhan Arbitration Commission inaugurated China’s first court of arbitration for the Belt and Road Initiative in Beijing Oct 28.

Launched by the commission, the court will handle engineering and commercial disputes to ensure the smooth development of construction projects abroad and the continued growth of the Belt and Road Initiative.

With a growing number of Chinese business investment and infrastructure projects in 64 countries along the Belt and Road, various kinds of cooperation will increase.

If companies couldn’t find solutions to their disputes, generally they turn to local courts for trial. However, it may lead to high costs and risks for unfamiliarity with foreign languages. Moreover, they may be unwilling to appear in a foreign court if the disputes are between two Chinese companies abroad.

Companies therefore often stipulate in a contract that any dispute will be subject to arbitration by a recognized authority. That is the reason for the establishment of this new court.

Zhu Shuying, vice president of the court of arbitration for the Belt and Road Initiative, said that it has elaborated regulations and rules for hearing Chinese enterprises’ contract disputes abroad.

Arbitrators will be selected in 12 areas of expertise, including transnational investment, joint-venture cooperation, infrastructure, construction cost and settlement, project quality, and project supervision.

The state-owned enterprise supported and took part in the establishment of the court of arbitration, which will be an important impetus to its leapfrog development, according to Zhu.