Hong Kong’s role as a regional hub for dispute resolution is set to expand, after China’s top legislature revised arbitration laws to allow city-based mediation organisations to operate directly in mainland free-trade zones, the South China Morning Post reports.
Starry Lee Wai-king, Hong Kong’s sole delegate to the National People’s Congress (NPC) Standing Committee, said the new framework would let arbitration institutions from outside the mainland establish a corporate presence in zones such as Qianhai and Nansha, instead of relying on individual arbitrators.
She added that the changes would also enable mainland organisations to expand internationally, calling it a “win-win” move that would raise the profile of arbitration across the Greater Bay Area (GBA).
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Courts in the GBA, Lee said, would also now be able to refer mediation cases to Hong Kong institutions.
The announcement follows May’s establishment of the International Organisation for Mediation in Hong Kong, an intergovernmental platform with 33 founding members ranging from Algeria and Indonesia to Belarus and Cuba.
Legal experts noted that the move could boost Hong Kong’s standing with international investors, many of whom prefer familiar and trusted systems for arbitration – such as that found in Hong Kong. Law professor and legislator Priscilla Leung said the city’s reputation in this field already made it an attractive venue for cross-border dispute settlement.
