First Look into Second International Commercial Court
2019-03-14
In February, at the invitation of the Second International Commercial Court of the Supreme People's Court ("ICC-X"), four lawyers of litigation practice group of Han Kun Law Offices traveled to Xi'an, where ICC-X is based, and paid a visit to the new court. It was the first time both for Han Kun lawyers to observe firsthand how the court operates and for ICC-X to ever receive guests from private practice.
ICC-X is established under the construct of Chinese legal system. It is designed specifically to accommodate and serve the needs of the "Belt and Road" initiative by creating a stable, fair, transparent and efficient framework within which parties involved in the implementation of the initiative can resolve their disputes in a timely fashion and safeguard their lawful rights. On June 29, 2018, the ICC-X and its sister court - First International Commercial Court ("ICC-Z") - were simultaneously inaugurated in Xi'an and Shenzhen respectively. Both are fully operational as of the beginning of 2019.
Pursuant to Provisions of the Supreme People's Court Concerning the Creation of International Commercial Courts, ICCs will have jurisdiction over (1) international commercial disputes where parties have legally chosen the Supreme People's Court as court of first instance and the amount of claim is in excess of CNY300 million (inclusive); (2) first instance international commercial cases being heard by a high people's court which later decides that it should be heard by the Supreme People's Court with the latter's approval; (3) first instance international commercial cases having national significance; (4) preservation of assets in connection with international arbitration cases, and requests to set aside or enforce international arbitration awards; and (5) other international commercial cases which the Supreme People's Court deems it necessary to be heard by an ICC. All cases heard by ICCs will be decided in one instance and no appeal is allowed. All judgments and rulings made by the ICCs are final and binding on all the parties involved. The ICCs are in effect extension of the Supreme People's Court in dealing with international commercial matters.
There are several unique features about the ICCs. For example, each ICC will form a panel of advisors consisting of legal experts from countries along Belt and Road and other countries to assist the court in analyzing and resolving disputes. In addition, the Supreme People's Court has invited a number of international commercial mediation/arbitration institutions and commercial courts to jointly establish a dispute settlement mechanism utilizing ICC platforms to effectively integrate litigation, mediation and arbitration and form a convenient, expeditious and low-cost "one-stop" dispute resolution center.
For lawyers from Han Kun, the visit to ICC-X was a true privilege, and being among the first to observe the court's operation was an honor. It demonstrates the openness of the new institution and its desire to be professional, inclusive and transparent. There is every reason to believe that given its stature, mandate and strategic location, the ICC-X is destined to be an impactful institution, particularly for matters relating to the "Belt and Road" initiative, international commerce and international jurisprudence. All eyes are on the implementation rules of the ICCs, their rulings and judgements.
