Guangdong leads in standardizing foreign-related internet arbitration

In recent years, the Guangzhou Arbitration Commission (GZAC) has introduced recommended standards for internet arbitration, known as the "Guangzhou Standards".

These guidelines aim to streamline and standardize internet arbitration processes by addressing aspects such as remote hearings hardware and software, identity verification, and the electronic delivery of legal documents. This marks a significant step towards establishing internationally-recognized standards for internet arbitration. The "Guangzhou Standards" are currently being promoted by over 150 domestic arbitration institutions and more than 50 overseas organizations.

An official from Guangdong's Justice Department noted that the province has been focusing on building world-class arbitration institutions in recent years. This effort includes supporting collaboration between arbitration institutions within the province and those in the Hong Kong and Macao special administrative regions, aligning local practices with international standards, and advancing the pilot construction of an international commercial arbitration center. These initiatives are designed to make Guangdong a preferred destination for resolving international commercial disputes through arbitration.

Last year, a foreign-related arbitration award involving cross-border electronic delivery of legal documents issued by the Shenzhen Court of International Arbitration (SCIA) was recognized and enforced by the High Court of Singapore based on relevant international conventions. Some experts believe this case sets a valuable precedent and will have a profound impact on cross-border electronic delivery of legal documents in international arbitration.

"By further stabilizing the expectations of domestic and foreign parties regarding the independence and fairness of arbitration, the SCIA's influence has steadily grown in recent years," said Liu Xiaochun, president of the SCIA. "It has consistently handled commercial disputes with a combined value exceeding 100 billion yuan ($13.77 billion) for three consecutive years, ranking among the top in the world."

Leveraging the geographical advantages of the Guangdong-Hong Kong-Macao Greater Bay Area, Guangdong has continuously promoted the alignment and integration of international legal service rules and mechanisms through cooperation and exchanges with arbitration institutions and related organizations worldwide.

During a recent hearing on an international air transport cargo damage dispute, the Zhuhai Court of International Arbitration (ZCIA) applied the Montreal Convention as the governing law, ruling that the transportation company should bear responsibility for the cargo damage, to the satisfaction of the parties involved.

"In terms of foreign-related arbitration, we have innovatively explored a series of arbitration mechanisms and rules that align with international standards," said Yu Xuewang, president of the ZCIA. "We also leverage our unique geographical advantage, handling 40 percent of arbitration cases involving Macao nationwide."

The GZAC is actively promoting the "3+N" arbitration hearing model, which integrates the mainland hearing model based on the socialist legal system with Chinese characteristics, the common law hearing model of Hong Kong, and the civil law hearing model of Macao, while continuously incorporating arbitration laws and procedural characteristics of other countries and regions. The commission is committed to fostering institutional openness and innovation in rules, aiming to create more open, inclusive, and diverse court hearing procedures.

In August 2024, the GZAC pioneered the release of the "Arbitration Secretary Standards," providing normative guidance for the professionalization and specialization of arbitration secretaries.