Over recent years, Shanghai has made significant strides in becoming a preferred venue for resolving international commercial disputes.

According to a recent business ranking by the World Bank, Chinese courts ranked second in public recognition and third in perceived fairness among 103 global economies. Shanghai was the only city on the Chinese mainland representing the country in the ranking.

Building professional framework

Shanghai has developed a specialized framework for foreign-related trials, featuring designated courts, specialized adjudication bodies, and professional judges, significantly enhancing the jurisdictional appeal of its courts.

Established in December, the Shanghai International Commercial Court serves as a central platform for resolving international commercial disputes.

In the first three quarters of 2025, the court handled 1,600 cases involving foreign commercial disputes and arbitration judicial reviews, with a total disputed amount exceeding 21.5 billion yuan ($3.02 billion). Parties involved came from 39 countries and regions.

To strengthen professional adjudication, the court created an international commercial expert committee, initially appointing 20 high-level experts, including eight from overseas. The committee provides intellectual support for handling major disputes.

Digital empowerment

To address the perennial challenges in cross-border litigation — time consumption, high costs, and geographical barriers — Shanghai courts have integrated digital technology throughout the judicial process.

The Shanghai International Commercial Court reports a 100 percent digital service rate for new cases and a 77.9 percent adoption rate for online hearings.

Courts are equipped with advanced simultaneous interpretation systems and intelligent hearing platforms that overcome language and spatial barriers.

Judicial big data applications have also evolved from "case adjudication" to "risk early warning".

The Free Trade Zone Tribunal of the Pudong New Area Court has developed a big data analysis system that collects and analyzes FTZ-related cases from Shanghai and other Chinese courts, precisely identifying high-risk companies.

Diversified dispute resolution

Shanghai is also pioneering diversified dispute resolution mechanisms that align with international rules.

In a dispute over equity repurchase between a Singaporean investor and a Shanghai company, the Shanghai International Commercial Court introduced a "third-party-funded mediation" mechanism. This solution allowed the foreign investor to recover its investment while safeguarding the Chinese company's operations, avoiding a zero-sum litigation outcome.

The Pudong New Area Court has further established a one-stop service center for foreign-related commercial disputes, bringing together arbitration institutions, mediation organizations, and legal service providers.

The results of these institutional innovations are tangible. According to the World Bank's assessment, Shanghai's judicial costs and time efficiency surpass the average for high-income OECD economies, with its "quality of judicial processes" index ranking first among global cities.

Sources: China Daily, thepaper.cn