Strengthening foreign-related rule of law is an inherent requirement for coordinating both domestic and international imperatives, and for balancing development and security. It also serves as a solid legal safeguard for advancing high-level opening-up and effectively addressing international risks and challenges.

In order to guide various market entities to conduct business in accordance with the law, prevent and reduce foreign-related commercial disputes at the source, and help foster a fair, orderly, stable, and transparent business environment, the Shanghai People¡¯s Court of Xuhui District (hereinafter referred to as the Xuhui Court or the Court) held a press conference on June 17.

Li Zeli, Vice President of the Xuhui Court briefed the press on the White Paper on the Adjudication of Foreign-Related and Hong Kong-, Macao- and Taiwan-Related Commercial Cases (2023¨C2025) (hereinafter referred to as the ¡°White Paper¡±), as well as the Five Measures for Judicial Support in Facilitating Enterprises¡¯ Global Expansion. Sun Jianwei, Deputy Chief Judge of the Commercial Trial Division introduced representative cases from foreign-related and Hong Kong-, Macao- and Taiwan-related commercial adjudication handled by the Xuhui Court between 2023 and 2025. The press conference was presided over by Xie Meng, Director of the Political Department and spokesperson of the Court. Deputies to the Xuhui District People¡¯s Congress, journalists from selected central and Shanghai media outlets, and representatives of commercial mediation organizations attended the press conference.

Providing Practical Recommendations in Response to Risks

The White Paper indicates that, from 2023 to 2025, the Xuhui Court concluded over 110 foreign-related and Hong Kong-, Macao- and Taiwan-related commercial cases, showing an overall year-on-year upward trend. These cases are characterized by a broad range of parties involved, distinct international features, continuously evolving dispute types with emerging issues in new sectors, as well as diversified forms of property and relatively large claim amounts.

Following a review of foreign-related and Hong Kong-, Macao- and Taiwan-related commercial cases over the past three years, it is found that market entities engaged in cross-border commercial transactions face risks such as inadequate internal governance and risk prevention mechanisms, insufficient capacity to utilize international commercial dispute resolution procedures, and a mismatch between the supply of foreign-related legal services and market demand. For example, in a case involving liability for damage to shareholders¡¯ interests, a China-foreign joint venture catering company had failed to establish internal mechanisms for resolving governance deadlocks such as shareholder disputes and non-compete conflicts. Once disputes arose among shareholders, the company lacked internal channels for resolution, making it difficult for the parties involved to settle the dispute on their own, which ultimately led to foreign-related commercial litigation.

In response to these risks, the Xuhui Court put forward three policy recommendations: first, to improve internal governance and risk prevention mechanisms; second, to enhance the capacity to apply international commercial dispute resolution mechanisms; and third, to strengthen foreign-related legal services and talent development.

Introducing Distinctive Judicial Service Initiatives

The Xuhui Court, anchored in its strategic role in serving high-level opening-up, has developed a deep understanding of the evolving patterns of foreign-related and Hong Kong-, Macao- and Taiwan-related commercial adjudication in the new era. It has continuously improved the quality and efficiency of adjudication, and is advancing its work in this field along three key dimensions.

The first is focusing on model-case demonstration to form the ¡°Xuhui Experience.¡± The second is advancing multi-stakeholder collaborative governance to enhance dispute resolution capacity. The third is optimizing adjudication management to improve efficiency in handling foreign-related matters. Through guidance from model cases, strengthened government-court coordination, and accelerated process reengineering, the court continues to consolidate its capacity in foreign-related and Hong Kong-, Macao- and Taiwan-related adjudication.

To ensure the effective implementation of the memorandum on ¡°Judicial Services Supporting Enterprises¡¯ Overseas Expansion¡± and to help enterprises enhance their international competitiveness, the Xuhui Court has further addressed the whole-chain needs of cross-border business operations and systematically introduced five judicial service measures: First, front-loading service access points to strengthen early-stage risk prevention for enterprises going global; second, improving the diversified dispute resolution framework to broaden channels for conflict resolution; third, establishing circuit mediation stations to develop a standardized operational mechanism; fourth, optimizing adjudication mechanisms to enhance the efficiency and quality of handling enterprise-related cross-border cases; fifth, ensuring smooth channels for responding to enterprises¡¯ demands and strengthening comprehensive safeguards across all dimensions of overseas business activities.

Providing Judicial Guidance through Representative Cases

At the news conference, the Xuhui Court selected five representative cases for publication in the White Paper, clearly illustrating the adjudication logic for such disputes and providing judicial guidance for their prevention and resolution.

For example, in a case involving a dispute over shareholders¡¯ capital contribution, the court accurately applied the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents to determine the validity of overseas evidence. In another case concerning an international sales contract dispute, the court precisely defined the nature of the foreign-related contract, thereby safeguarding and facilitating enterprises¡¯ overseas expansion.

The rule of law is the best business environment. Anchored in the broader development strategy of the region, the Xuhui Court is committed to fully leveraging its adjudicative functions, handling foreign-related and Hong Kong-, Macao- and Taiwan-related commercial cases with high quality and efficiency, and actively responding to the needs of foreign-related rule of law. Looking ahead, the court will continue to explore new pathways and adopt innovative measures, ensuring equal protection of all commercial entities in accordance with the law. It will further strengthen the cultivation of model cases and clarify commercial legal rules. Through higher-level adjudication and more rigorous work practices, the court aims to provide stronger judicial protection for high-level opening-up.

Experts¡¯ Comment

Guo Yanjun,  Deputy to the Xuhui District People¡¯s Congress; Vice Dean, Professor and Doctoral Supervisor at KoGuan School of Law, Shanghai Jiao Tong University

The issuance of the White Paper and judicial initiatives by the Xuhui Court fully reflects the court¡¯s performance in adjudicating foreign-related and Hong Kong-, Macao- and Taiwan-related commercial cases. By presenting an overview of case handling, proposing policy recommendations, and releasing representative cases, the court aims to extend the function of adjudication, provide judicial guidance, and actively respond to the needs of foreign-related rule of law. In particular, the five specialized measures issued to support enterprises in their overseas expansion are of great significance in ensuring the equal protection of the lawful rights and interests of all market entities by law, fostering a market-oriented, law-based, and internationalized business environment, and serving the country¡¯s strategy of high-level opening-up.

Wang Weiqing, Deputy to the Xuhui District People¡¯s Congress; Tax Partner at Kingdom Law Firm; the 5th and 6th Council Member of China International Taxation Research Institute; CCTV Financial Commentary Analyst

The Xuhui Court has released the White Paper and judicial measures focusing on the whole-chain needs of enterprises engaged in cross-border operations. Such documents feature solid empirical data and representative cases, demonstrating strong practical and guiding value. They closely align with the judicial needs of market entities and provide meaningful operational guidance for preventing and resolving foreign-related risks. By emphasizing ¡°professionalism¡± and ¡°efficiency,¡± the court has effectively responded to societal and corporate expectations. These efforts help build a robust legal framework for enterprises expanding overseas and enhancing their international competitiveness, while also providing strong judicial support for high-level opening-up.