Chinese courts are ramping up efforts to handle foreign-related commercial and maritime cases, emphasizing mediation to support high-level opening-up and promote high-quality marine development.

On Thursday, the Supreme People's Court highlighted six notable foreign-related cases, underscoring mediation's role in boosting judicial efficiency. These cases involve issues such as cross-border investment, equity transfer, sales contracts, ship operation management, maritime salvage, and the recognition and enforcement of foreign arbitration awards. Litigants come from countries including South Korea, Italy, Denmark, Yemen, and Portugal.

One case involved a Yemeni businessman who, in June 2022, ordered a solid tube ice machine valued at over $250,000 from a company in Guangzhou, Guangdong province. The contract specified key components and technical parameters. However, the businessman refused delivery, citing discrepancies in component brands and specifications. The Guangzhou company insisted the product met contractual terms and sought payment.

Both parties sought judicial intervention. The court identified the dispute as an international contract issue, involving cross-border transaction complexities and differing legal interpretations. To address technical concerns, the court commissioned a professional agency for an evaluation report and involved a Yemeni mediator to facilitate communication.

Once the businessman understood Chinese laws and trade practices, he agreed to negotiate. The dispute was ultimately resolved through mediation.

The Supreme People's Court stated that this case illustrates the professionalism and effectiveness of China's foreign-related commercial judiciary, respecting international transaction practices and the needs of all litigants. The resolution through mediation bolstered foreign trust in the Chinese judicial system, enhancing a market-oriented, law-based, and international business environment, according to the SPC.

The court noted that resolving foreign-related disputes via mediation requires judges to accurately apply international treaties and foreign laws, urging them to enhance their professionalism in defining rights and obligations to achieve optimal case resolutions.