In its ninth consecutive year of reform efforts, the Shanghai High People's Court has introduced its 2026 action plan to further optimize the city's law-based business environment through innovative measures in commercial dispute resolution, judicial protection of market order, and bankruptcy trial efficiency.

New action plan

The plan focuses on three main strategies: "enhancing commercial dispute resolution mechanisms", "strengthening judicial protection of market order", and "improving the efficiency of bankruptcy trial reforms".

Supported by two key pillars, "digital empowerment" and "coordinated collaboration", the plan outlines 17 initiatives and 53 specific tasks across five major areas to optimize the law-based business environment.

Enhancing commercial dispute resolution mechanisms

The plan aims to establish a commercial dispute resolution system that is "locally tailored and internationally aligned" to meet the diverse, efficient, and professional dispute resolution needs of business entities.

Domestically, it seeks to streamline litigation, mediation, and arbitration processes, develop commercial mediation, and introduce a "demonstrative judgment + batch mediation" model. The plan also supports the implementation of new systems under the arbitration law, such as ad hoc arbitration.

Internationally, it strives to develop judicial services and protection capabilities with an international perspective and professional standards, promote the substantive operation of the International Commercial Expert Committee, and publish typical cases involving foreign-related commercial and maritime matters.

Strengthening judicial protection of market order

The plan emphasizes a balance between "protection and regulation" and the integration of "judgment and enforcement" to address business entities' needs for a fair, healthy market order.

Initiatives include compiling intellectual property governance reports to support leading industries and addressing behaviors that disrupt market order or evade debts, such as orchestrated online manipulation, public-opinion blackmail, professional compensation claims, and malicious business closures.

Improving the efficiency of bankruptcy trial reforms

The plan outlines a dual approach of "internal quality improvement" and "external collaboration". It includes establishing full-process standards for handling bankruptcy cases and improving the review mechanism for cases transitioning from enforcement to bankruptcy.

The plan also supports the implementation of a coordination mechanism for bankruptcy-related administrative affairs and the development of a cross-border bankruptcy cooperation manual to enhance the effectiveness of business rescue and market exit in bankruptcy cases.

Emphasizing digital empowerment and coordinated collaboration

The plan highlights the role of digitalization in enhancing business efficiency and fostering collaborative efforts. It calls for leveraging digital tools in litigation services, bankruptcy processing, and data-enabled services for businesses.

By improving cooperation mechanisms, integrating theory with practice, and promoting typical cases, the plan aims to enhance the law-based business environment from "institutional improvement" to "cultural formation".

World Bank recognition

According to the World Bank Enterprise Surveys, Shanghai scored 100 and 99.98 in "judicial independence and impartiality of courts" and "confidence in courts," respectively. These scores placed the city at the highest level among the 103 economies evaluated by the World Bank.

Source: Shanghai High People's Court