The establishment of a dispute resolution mechanism with international competitiveness and the creation of an international arbitration hub is crucial to the creation of an internationalized business environment, which in turn is vital to the successful development of the Guangdong-Hong Kong-Macao Greater Bay Area, a major national development strategy.

The Greater Bay Area is well-placed to develop an international arbitration hub as it enjoys unrivaled advantages, namely:

Unique location: The region is located on the southern coast of China, boasting strong connection with Southeast Asia, and is an important hub for the Belt and Road Initiative. This unique location has attracted international arbitration organizations and professionals to conduct business and disputing parties to settle their cases in the Greater Bay Area.

A highly open economy: The economy of the Greater Bay Area is highly open and internationalized, with many multinational enterprises and financial institutions. Active economic and trade activities inevitably give rise to a large number of cross-border commercial disputes, creating a market for international arbitration services.

The unique advantage of “one country, two systems” and three jurisdictions: The Greater Bay Area covers three different jurisdictions; namely, the mainland and the Hong Kong and Macao special administrative regions, with diverse legal cultures and systems. This uniqueness is conducive to the exploration of innovative arbitration rules and the creation of an international arbitration platform that integrates the strengths of different jurisdictions.

Strong central government support: The central government attaches great importance to the construction of a legal environment that aligns with international practices, and has issued a series of policies to support the development of international arbitration in the Greater Bay Area. For example, the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area explicitly proposes to “develop an international legal services center and an international commercial dispute resolution center”.

However, while the prospect is bright for the Greater Bay Area to establish itself as the center for international legal and dispute resolution services in the Asia-Pacific region, there are challenges or deficiencies that the sector needs to tackle:

The overall international competitiveness of arbitration institutions operating in the region needs to be enhanced: Compared with international arbitration centers, such as London and Singapore, there is still a gap in the international visibility, influence and credibility of arbitration institutions in the Greater Bay Area, and there is a lack of arbitration brands with global influence.

Insufficient internationalization of arbitration rules: There are still certain differences between the mainland’s arbitration rules and internationally accepted rules, and there is a need to further converge with the international community in terms of the validity of arbitration agreements, the selection of arbitrators, and interim measures.

In conclusion, creating an international arbitration hub in the Greater Bay Area is a systematic project that requires the concerted efforts of the government, arbitration institutions, the legal profession and other parties

Arbitration talent team building needs to be strengthened: There is a shortage of internationalized and professional arbitration professionals, especially arbitrators, lawyers and expert witnesses who are familiar with international arbitration rules and have cross-cultural communication skills.

Arbitration judicial support and guarantee mechanism needs to be improved: The recognition and enforcement of arbitral awards, judicial support for arbitration preservation measures, etc, still need to be strengthened and improved, in order to enhance the disputing parties’ confidence in choosing arbitration.

The path for creating an international arbitration hub in the Greater Bay Area can be generalized as follows:

Nurturing arbitration institutions with international competitiveness: By supporting existing arbitration institutions to grow bigger and stronger, encouraging the establishment of international arbitration branches, attracting internationally renowned arbitration institutions to settle in the Greater Bay Area, and building arbitration brands with global influence.

Promoting the convergence of arbitration rules with international standards: by drawing on advanced international experience, improving arbitration rules, converging with the prevailing international rules in respect of the validity of arbitration agreements, the selection of arbitrators, interim measures, etc, so as to enhance the internationalization of arbitration standards.

Building up arbitration talent: by establishing a sound mechanism for the training of arbitration professionals, strengthening exchanges and cooperation with Hong Kong, Macao and international arbitration organizations, and training a batch of high-quality arbitration professionals with an international outlook and a good understanding of international rules.

Improving the judicial support and guarantee mechanism for arbitration: by strengthening judicial review of arbitration, improving the recognition and enforcement mechanism for arbitral awards, providing stronger judicial guarantee for arbitration, and enhancing the confidence of parties in choosing arbitration.

Strengthening publicity and promotion to enhance international influence: with measures that actively publicize the advantages of arbitration in the Greater Bay Area, and organize international arbitration forums and conferences to enhance the international visibility and influence of arbitration in the region.

In conclusion, creating an international arbitration hub in the Greater Bay Area is a systematic project that requires the concerted efforts of the government, arbitration institutions, the legal profession and other parties. It is believed that with the strong support of national policies, the Greater Bay Area can fully utilize its own advantages to develop itself into an international arbitration hub with global influence.

The author is a law professor, director of the Chinese Association of Hong Kong and Macao Studies, and president of the Association for the Promotion of Rule of Law, Education and Technologies.

The views do not necessarily reflect those of China Daily.