SCIA sets up China's first overseas hearing centre in the U.S.

This year witnesses important progress being made in the China-US relations. Recently, during the U.S. President Trump’s visit to China, commercial contracts and mutual investment agreements signed by the countries have amounted to more than 250 billion US dollars, ranging from investment projects to trade projects in goods and services. To better resolve disputes and promote cooperation between enterprises of the two countries, Shenzhen Court of International Arbitration (also known as “South China International Economic and Trade Arbitration Commission”, hereinafter referred to as “SCIA”) sets up the first overseas hearing centre of China’s international arbitration institutions in the U.S. – SCIA Hearing Centre-North America.

SCIA Hearing Centre-North America is located in Los Angeles relying on the North American Representative Office of Shenzhen with the support from the Invest Shenzhen and other organisations. It is a collaborative innovation that effectively services the needs of users in both China and the U.S. and represents a great move of China’s endeavour to forge the world-class international business environment. SCIA Hearing Centre-North America has the following three major functions: Firstly, to facilitate the overseas hearing of SCIA cases, which means international commercial arbitration cases in North America can be heard in this hearing centre. Recently, an arbitration agreement was reached between a Shenzhen enterprise that invests in the U.S. and an enterprise in California, consenting to submit their disputes to SCIA with its arbitration rules to apply. To lower costs and improve efficiency, both parties hope to have their case heard in the U.S. It is believed that with the improvement of the bargaining power of Chinese enterprises and credibility of international arbitration in China, there will be an increasing number of China-related commercial disputes to be arbitrated at SCIA's overseas hearing centre. Secondly, to facilitate overseas promotion of the business environment under the rule of law in China. Through hearing at this centre, foreign enterprises will have first-hand experience in the application of “China’s Rules” and a better understanding of China’s business environment under rule of law. In addition, SCIA will provide training services regarding arbitration rules to its 353 foreign arbitrators (49 in the U.S., 11 in Canada and 2 in Mexico) on a regular basis and thus to enhance the overseas influence of “China’s Rules” and “China’s Standards”. Thirdly, to strengthen the overseas radiation of the Pilot Zone under Rule of Law in China. By setting up the overseas hearing centre, SCIA enlarges the international influence of the Pilot Zone under Rule of Law in Qianhai, China and such has also demonstrated China’s determination in promoting the business environment under rule of law in its free trade zones.

The exploration and practice of establishing the SCIA Hearing Centre-North America are of great significance, which marks the deepening of the “Going Global” strategy of China’s international arbitration and that the “China’s Rules” are participating in the international competition at a higher level. It also represents a great move of the China’s arbitration institution from Shenzhen to the world, demonstrating the contribution of “China’s Wisdom and China’s Plan.” This measure greatly matches the reform and opening-up policy, “Belt and Road” Initiative and the formation of “The Greater Bay Area of Guangdong, Hong Kongand Macao”, and it will play an important role in forging a world-class international business environment and building the hub for international arbitration in China.