Top court helps resolve $10 million cross-border commercial dispute

Thanks to efforts by China's top court, an international commercial dispute involving about $10 million was resolved through mediation Thursday, marking a mutually beneficial outcome for parties across Eurasia.

The First International Commercial Court of the Supreme People's Court said the case stemmed from a contractual dispute between a Swiss company and a firm based in Shenzhen, Guangdong province. The London Metal Exchange had initially ruled in favor of the Swiss company, ordering the Chinese firm to pay nearly $10 million in compensation.

However, the Shenzhen company later deregistered without notifying its Swiss counterpart. Unable to collect the compensation, the Swiss firm turned to the China International Commercial Court, which was established by the top court to handle cross-border disputes.

Adhering to the principle of equal protection for both domestic and foreign parties, the court facilitated a comprehensive exchange of evidence during pretrial meetings. It also worked closely with both sides to understand their needs, taking into account their ongoing trade relationship and potential for future cooperation.

When the parties indicated a willingness to settle, the panel of judges helped mitigate risks related to international currency fluctuations to ensure the stability of the final settlement. The court also helped streamline internal approval procedures at the involved companies, significantly reducing the time needed for the mediation agreement to take effect.

"Our goal was to resolve the dispute substantively in one go, thereby minimizing costs while maximizing the protection of the litigants," said presiding judge Shen Hongyu.

"This case has not only exemplified Chinese courts' commitment to fair, efficient, convenient and low-cost dispute resolution, but also highlighted our judicial responsibility in fostering a first-class business environment characterized by market orientation, rule of law and internationalization," she said.

As of June, the China International Commercial Court has handled 42 international cases, 36 of which have been concluded, according to Long Fei, a senior judge in the court's Fourth Civil Division.

Litigants came from 21 countries, including Italy, Japan, South Korea, Singapore and the United States. Nearly 20 percent of the concluded cases were resolved through mediation, Long said.