Foreign-related laws to be enhanced

Lujiazui, Shanghai's financial center, forms a perfect backdrop to Shanghai's Bund. [Wang Gang/For China Daily]

China is enhancing its legal framework governing foreign-related issues in order to better meet its opening-up and high-quality economic development, officials from the Ministry of Justice said on Friday.

As China expands measures for further opening-up, the legal and security risks for its citizens and businesses abroad also rise.

In response, the country is building a mechanism to integrate foreign-related legislation, enforcement and legal services, while fostering talent to meet such demands, said Wang Zhenjiang, vice-minister of justice, during a news conference in Beijing.

China currently has over 50 laws that specifically address foreign-related issues and more than 150 laws with foreign-related provisions. However, there are still gaps and weaknesses in the legal framework governing foreign-related affairs, Wang said.

The ministry plans to refine existing laws, providing stronger legal support to protect Chinese citizens and enterprises abroad. It has also been tasked with strengthening legislation in key, emerging and foreign-related fields, as well as improving foreign legal services, he said.

These efforts include the revision of laws like the Foreign Trade Law and Customs Law to align with high-standard international economic and trade regulations. These revisions aim to promote opening-up and address the global trends of digitalization and green trade.

"We are also prioritizing the development of international legal services, with initiatives such as establishing international commercial arbitration centers in key locations like Beijing, Shanghai and the provinces of Guangdong and Hainan. Legal services related to cross-border commerce, including lawyers, notarization and mediation, are also being strengthened," he said.

Chinese law firms have set up 207 branches in 37 countries and regions, with over 12,000 lawyers specializing in foreign-related services combining with China's notarization and certification policies, effectively facilitating the entry of Chinese businesses and citizens overseas, he said.

The ministry said since 2023 it has selected 150 demonstration institutions for foreign-related legal services, supported Chinese law firms in establishing service outlets in markets involved in the Belt and Road Initiative, and selected 295 notary institutions to conduct remote video notarization services in collaboration with overseas embassies and consulates.

Efforts are also underway to cultivate world-class arbitration institutions and law firms, establish a comprehensive legal service platform for the BRI, and improve mechanisms for verifying foreign laws, Wang said.

Yang Xiangbin, director of the ministry's Bureau of Public Legal Services Administration, said arbitration is a globally recognized legal service for resolving commercial disputes. China is currently revising its Arbitration Law, marking the first major update in 30 years. The revision aims to align China's arbitration system with international standards, enhancing its global influence while maintaining a distinctive Chinese approach.

So far, China has 282 arbitration institutions employing over 80,000 arbitrators and staff members. In 2023, arbitration institutions nationwide handled 607,000 cases, a 27.8 percent year-on-year increase, with disputes totaling 1.16 trillion yuan ($163.7 billion), up 17.7 percent from the previous year.

Meanwhile, the establishment of international commercial arbitration centers in China is progressing rapidly since the program's launch in 2022, he said.

In 2023, eight pilot institutions processed 79,000 cases, amounting to 600 billion yuan in value — 52 percent of the national total. Their foreign-related cases accounted for 72 percent of the national total.