RESOLVING BUSINESS DISPUTES AT THE EARLIEST STAGE POSSIBLE

By Huang Jiangqin

Business mediation is an alternative dispute resolution method that helps avoid court litigation.An effective means of settling commercial disputes and protecting interests, business mediation allows companies to have an equal say to achieve win-win results based on flexible rules.In recent years, mediation has played an increasingly important role in handling international commercial disputes and optimizing the global business environment.

Organized by the China Chamber of International Commerce in collaboration with business associations,legal service agencies,universities, and think tanks around the world, the International Commercial Dispute Prevention and Settlement Organization(ICDPASO) was established in October 2020 with an aim to promote a law-based international business environment by providing services including dispute prevention, commercial mediation, and commercial arbitration.

Liu Chao, ICDPASO secretary-general and head of Department of Legal Affairs of China Council for the Promotion of International Trade, sat down with China Report ASEAN to share his opinions on commercial disputes faced by countries participating in the Belt and Road Initiative (BRI) and countermeasures to solve them.

Since BRI cooperation adheres to the principles of extensive consultation,joint contributions,and shared benefits,implementation of the initiative requires a shift from the old mindset.

China Report ASEAN: What legal risks and commercial disputes are countries along the Belt and Road often exposed to?Why do these risks and disputes arise?

Liu Chao:Our research has found that countries along the route face legal risks from 120 aspects in more than 20 fields. For example, in the field of international trade,risks and disputes tend to involve investment, finance,construction, and intellectual property rights.

Such risks and disputes existed before the BRI was implemented. With more and more parties from various sectors participating in BRI cooperation, economic activities in countries along the route have increased.At the same time, risks of business disputes have been rising as a result of constantly changing commercial rules and the differences in laws and regulations, policies, cultures,and customs in different countries. Businesses in these countries, therefore, saw a growing demand for fast, fair,and low-cost means of dispute resolution.

China Report ASEAN:What roles has the ICDPASO played in promoting BRI implementation?

Liu:Previous practice in business mediation focused more on resolving disputes,and parties involved always sought a complete victory against the other side. Since BRI cooperation adheres to the principles of extensive consultation, joint contributions, and shared benefits,implementation of the initiative requires a shift from the old mindset. Dispute prevention can help minimize business costs and encourage cooperation. When disputes inevitably arise, concerned parties expect fast and fair problem-solving at low costs rather than the protracted procedure often seen in international practice.

In this context, the ICDPASO was founded on October 15,2020, to not only seek dispute resolution but also foster greater dispute prevention.Since establishment, we have handled more than 400 cases through negotiation,consultation, and conciliation,and most have ended with satisfactory results. Instead of litigation, arbitration, and mediation, these disputes were successfully resolved in their embryonic stage.

The International Conference on Global Governance of Digital Economy 2023,organized by the ICDPASO Secretariat,the Beijing Institute of Technology, and Deloitte China.

After collecting opinions from around the world for more than six months, we published the ICDPASO Commercial Mediation Rules on May 24 of last year and revised it in July.In the future, the ICDPASO will continue our work on dispute prevention and develop and issue rules for arbitration and mediation. We are committed to creating a dispute resolution mechanism different from all existing systems and offering businesses fast, fair, and lowcost services.

China Report ASEAN: Do you have any suggestions for companies in countries along the Belt and Road on avoiding risks and solving problems arising in business?

Liu:This effort involves several aspects. The first and foremost is identification of risks. Measures such as personnel training, forums,and seminars and study of laws of different countries can help businesses recognize potential risks in international commerce.

Second, after identifying possible risks, companies should take proactive measures to establish a compliance system for each type of risk and try to avoid potential problems in overseas operations through rule-based methods.

The third is quick and fair settlement at a low cost. Founded with support from business associations,legal service agencies, and universities from more than 40 countries, the ICDPASO is both a non-governmental international organization and a community of shared future.We are devoted to providing all parties in the community with excellent commercial dispute mediation services. In the post-pandemic era, we will make determined efforts to expand our services to benefit business communities around the world.