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Enhancing Global Engagement: The Role of Chinese Courts in Business Development

In a rapidly changing global landscape, Chinese courts are stepping up efforts to ensure a fair and accessible legal environment for both domestic and foreign entities. Amid a significant increase in foreign-related cases, these judicial reforms are essential to advancing China's modernization and global business presence.

Zhang Jun, the president of the Supreme People's Court, highlighted that openness is a pivotal aspect of Chinese modernization and that the rule of law serves as the backbone for high-level global engagement. As part of China’s commitment to this cause, a dramatic rise in foreign-related civil and commercial cases has been witnessed. According to data from the 14th Five-Year Plan (2021-25) period, Chinese courts handled around 128,000 first-instance cases involving parties from more than 100 countries, marking a remarkable 65% increase compared to the previous five years.

The statistics from 2025 alone reveal that Chinese courts managed over 67,000 foreign-related commercial and maritime disputes, reflecting a 44% surge year-on-year. This trend underscores the ongoing globalization of supply chains and the fast-paced growth of digital trade, which have inevitably led to a surge in disputes related to international goods contracts, service trade, and cross-border transactional issues.

As Chinese firms venture further into international markets and overseas investments are on the rise—especially under the Belt and Road Initiative—the complexities of these cases have escalated. Zhang noted that the diversity of these disputes not only signifies China's deeper integration into the global economy but also emphasizes a shift in focus from trading goods to creating a regulatory and institutional framework that is more open and robust.

To cope with the increasing caseload while catering to the varied needs of litigants, courts across China are striving to offer more equitable, efficient, and accessible services to all parties involved in litigation. The establishment of the first and second international commercial courts in Shenzhen and Xi'an in 2018 served as a significant milestone, providing litigants with multiple options for dispute resolution, including mediation, arbitration, or straightforward litigation.

By the end of 2025, these specialized courts had settled 37 cases that involved parties from 21 different nations. Moreover, Chinese courts have launched international commercial tribunals in 18 cities, including major economic hubs like Beijing and Shanghai, handling over 1,700 foreign-related commercial and arbitration cases in 2025—an increase of 24% from the previous year.

Zhang underscored the importance of respecting the preferences of litigants regarding their methods of dispute resolution. He cited a notable case involving a foreign oil tanker at Qingdao port, which was resolved within a day due to swift coordination between various maritime courts and the effective use of mediation, both online and offline.

The influence of China’s judicial system continues to expand on the international stage, aligning with ongoing improvements in adjudication processes and legal service offerings. For instance, following a collision between a Liberian container ship and a Panamanian oil tanker in 2022, the parties involved opted to have their case resolved by the Ningbo Maritime Court, underscoring the increasing international trust in China’s legal framework.

In another significant development, a Norwegian company sought the Shanghai Maritime Court's recognition of a UK court's judgment amid the absence of a formal judicial cooperation treaty between the two nations. The successful recognition of this judgment, based on the principle of reciprocity, created a precedent for future mutual recognition of commercial judgments, showcasing China’s legal confidence and responsibility.

From 2024 to 2025, courts in China received 1,620 requests for the recognition of foreign judgments and processed 1,510 of these applications. This illustrates China’s commitment to protecting the rights of both domestic and international parties during foreign-related trials, thereby maintaining an inclusive and transparent judicial system.

In a world fraught with uncertainties, Zhang emphasized the judiciary's role in providing legal stability to confront external challenges. He underscored that maintaining a secure and transparent legal framework is crucial for safeguarding foreign investments and fostering international economic cooperation.

Chinese judicial authorities have actively participated in the formulation of important foreign-related legislation, including the Foreign Investment Law, aimed at enhancing the country’s judicial framework. The successful establishment of the UN Convention on Negotiable Cargo Documents in December 2025, which originated from Chinese judicial practices, is a testament to China's proactive engagement in global legal standards.

Through consistent and efficient judicial practices, Chinese courts are poised to mitigate external risks and stabilize market confidence, thereby fostering an environment conducive to global trade and investment.