5 reasons why arbitration in Hong Kong at HKIAC is suitable for Belt and Road disputes:
- Established in 1985, HKIAC has long been the dispute resolution option of choice for disputes arising between Chinese and non-Chinese parties. 55% of arbitrations administered by HKIAC in 2017 involved a Mainland Chinese party, with Chinese state-owned entities consistently featuring in HKIAC's caseload.
- HKIAC has extensive experience administering arbitrations involving parties from jurisdictions along the Belt and Road Initiative (BRI). Since the introduction of the 2013 HKIAC Administered Arbitration Rules, HKIAC has handled 362 cases involving a party from a BRI jurisidction, and one third of the cases HKIAC handled in 2017 involved a Mainland Chinese party and a party from a BRI jurisdiction.
- HKIAC regularly handles cases of the type that will arise out of the BRI. In 2017, 19.7% of cases were corporate and finance disputes, 19.2% were construction disputes, and 8.8% were maritime disputes.
- Arbitration in Hong Kong provides users with a final binding decision, which is enforceable in over 150 countries globally through the New York Convention. The Guide to the New York Convention can be found here.
- 92% of BRI jurisdictions have ratified the New York Convention making it the most viable dispute resolution tool for cross-border transactions under the BRI. A complete list of the original BRI countries that have ratified the New York Convention can be found here.
- HKIAC awards have a strong track record of enforcement in BRI countries and an unrivalled record of enforcement in Mainland China.
- Under the HKIAC Rules, parties can choose whether to pay the tribunal on the basis of an hourly rate or according to a scale calculated on the basis of the amount in dispute.
- HKIAC offers premium hearing space overlooking Victoria Harbour for disputes involving a state listed on the OECD development assistance list. 70% of the BRI countries are on the OECD list.
- HKIAC has cost effective administrative fees compared to other major international arbitration institutions.
- HKIAC Rules can be strategically used to control costs and increase efficiency in multi-party multi-contract disputes, of the kind that typically arise in construction, joint venture and finance disputes.
- HKIAC Rules allow multiple arbitrations to be consolidated, additional parties to be joined to arbitrations, and single arbitrations to be commenced under multiple contracts.
- Emergency arbitrators can be appointed where urgent relief is required.
Neutrality and Independence
- Hong Kong enjoys a unique position being part of China under the “one country two systems” doctrine, while maintaining a separate and independent legal system based on common law.
- Hong Kong upholds the rule of law, which is overseen by an independent judiciary (ranked first in Asia for judicial independence for the past 24 years), with a proven pro-arbitration stance.
Hong Kong and HKIAC are attractive options for Chinese parties who seek geographical proximity and cultural familiarity, and for non-Chinese parties who seek independence, neutrality and international best practice. Hong Kong's role as a centre for international dispute resolution for the BRI has also been recognised and endorsed by the PRC government.
Mitigate risk in BRI projects by selecting an HKIAC dispute resolution clause that will provide for the reliable resolution of disputes through settlement or a binding decision that is enforceable in over 156 countries worldwide.
For further details on HKIAC’s arbitration services click here.
As a one-stop-shop for dispute resolution, HKIAC can also provide mediation, adjudication and domain name services to BRI parties who may wish to combine a number of methods to resolve their disputes.