Work review on judicial support for FTZ development

(english.court.gov.cn)      Updated : 2022-02-23

As the pioneers of the country's reform and opening-up, pilot free trade zones (FTZs) are windows for developing a new system for an open economy. Since the launch of the China (Shanghai) pilot FTZ on Sept 29, 2013, China has established 21 pilot FTZs covering 70 sections and advanced opening-up in a comprehensive and gradual manner.

To meet new requirements under new circumstances and to help build a world-class and business-friendly environment governed by a sound legal framework in the pilot FTZs, the Supreme People’s Court (SPC) has issued a series of judicial documents urging people's courts at all levels to have better understandings of the significance of building pilot FTZs, intensify efforts to trial FTZ-related cases and provide high-quality and efficient judicial support for FTZ development. The efforts have yielded a group of exemplary cases and a set of judicial measures that feature local characteristics and innovative ideas and have been well-responded to by market players.

Fair and efficient trials of pilot FTZ-related cases

During the process of further expanding pilot FTZs, how to timely update judicial trial concepts, accurately apply laws and fairly protect the legitimate rights and interests of Chinese and foreign litigants, has been a key topic faced by the people's courts.

The SPC recently released ten typical cases and 12 well-received measures that fully reflect the people's courts' efforts in safeguarding the development of pilot FTZs through concrete actions.

For instance, the Beijing No 4 Intermediate People's Court heard a case on confirming whether an agreement on international sports events operation was subject to arbitration, and found that it was. The judgment reflected judicial support for commercial arbitration in the sports industry, and was conducive to fostering a good law-based environment for resolving commercial disputes arising in it.

A law-based business environment functions to protect and to supervise in accordance with the law. The Changsha Intermediate People's Court in Central China's Hunan province heard a case involving an imported leather leftovers sales contract. The judgment determined that the contract in dispute was about importing solid waste and violated China's laws; it was thus found to be invalid. The trial of this case effectively cut off delivery of foreign garbage into China and guided honest and legitimate business operations by both Chinese and foreign investors, and was thus of great importance to the optimization of the pilot FTZs' eco-environment and safeguarding public health.

Targeted service and one-stop dispute resolution

To achieve a law-based, world-class and convenient business environment, courts at all levels have innovated trial and other dispute resolution mechanisms and made their services more targeted.

The Shanghai FTZ Court developed a judicial big data analysis system which sorts and archives typical cases of judicial statistical significance in categories such as civil, commercial, financial and intellectual property rights. The system is regularly updated with case information concerning the Shanghai FTZ, which has greatly enhanced the accuracy of judicial services.

The Suzhou International Commercial Court introduced the participation of experts into mediation of foreign-related commercial disputes, and established a neutral evaluation and mediation mechanism to provide customized resolution plans which meet diversified judicial requirements from both Chinese and foreign market players. Meanwhile, the court also offered a range of technological support services for foreign litigants such as online identity verification, remote video hearing and mediation, interpretation for cross examination of electronic evidences as well as real-time searching of laws and regulations, which facilitated efficient dispute resolution.

Sci-tech empowered judicial services

Focus was also placed on strengthening inter-departmental coordination and building intelligent courts to enhance judicial efficiency.

Courts in Central China's Hubei province built a judicial cooperation community for pilot FTZs which included a joint judicial service mechanism, an execution coordination mechanism, a specialized trial mechanism for cases involving pilot FTZs and a joint judicial conference mechanism, which greatly enhanced communication and coordination among courts in the pilot FTZs and improved efficiency of case filing, trial, mediation and execution.

Courts in South China's Guangdong province launched an authorization and testimony platform for cases involving the Hong Kong and Macao special administration regions and a sharing platform for electronic files of commercial arbitration in their drive to build intelligent courts. The measures greatly cut litigation costs and improved trial efficiency.