SCIA Concludes Cooperation Agreement with ICSID in Washington, D.C.

On the afternoon of June 26, 2018 (local time), Mr. SHEN Sibao, Council Chairman of Shenzhen Court of International Arbitration (SCIA) and Mr. LIU Xiaochun, President of SCIA were invited to lead a delegation to visit the International Centre for Settlement of Investment Disputes (ICSID). SCIA entered into a Cooperation Agreement with ICSID. The Agreement was signed on behalf of SCIA by LIU Xiaochun, President of the SCIA, and on behalf of ICSID by Meg KINNEAR, Secretary-General of ICSID.

Scenes at the signing of the Agreement

Scenes at the signing of the Agreement

According to the Agreement, ICSID and SCIA will provide each other with hearing and supporting facilities as well as translation, case management and other related services. Meanwhile, both sides will jointly promote arbitration, mediation and other ADR methods in the business and legal communities; they will also exchange information and jointly organize events in the above fields. The signing of the Agreement laid a solid foundation for deep cooperation between both sides, and the global influence of Shenzhen international arbitration has been further reinforced. 

Scenes at the signing of the Agreement

Scenes at the signing of the Agreement

ICSID is currently recognized by the international community as the most authoritative institution devoted to international investment dispute settlement. It was established in 1966 by the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention, officially effective as from October 1966). Its head office is located in the World Bank headquarters of Washington, D.C. and its European office is located in Paris. ICSID is specifically established to facilitate dispute settlement between host states and foreign investors through arbitration and mediation, aiming at boosting mutual trust between states and investors so as to encourage continued increase of foreign investment.

With the progress of Chinese enterprises’ “going global” strategy and the “Belt & Road” initiative, an increasing number of investment arbitration cases between Chinese investors and foreign host states is foreseeable. To adapt to the market demand, SCIA took the lead in China in introducing investment arbitration in 2016. SCIA Arbitration Rules include investment disputes into its jurisdiction, starting Chinese arbitration institutions' exploration to handle investment arbitration.

As ICSID’s hearing partner in Asia, SCIA is based in Qianhai Shenzhen-Hong Kong cooperation zone, a pilot zone of rule of law, located at the core of Guangdong-Hong Kong-Macau great bay area and the hub of “Belt & Road”. The Agreement was signed by both sides on the 40th anniversary of China’s reform and opening-up and the 35th anniversary of Shenzhen international arbitration, which means that ICSID services “land” in Qianhai through its cooperation with SCIA,  further strengthening the construction of China’s international arbitration hub. Positive influences will be seen in the following four aspects: first, it is beneficial for Chinese enterprises to use the tool of investment arbitration and protect their lawful rights and interests when “going global”; second, it is beneficial for both sides to jointly provide more accessible and professional investment arbitration services for investors in other Asian countries and regions; third, it is more beneficial for professionals from China and other Asian countries to participate in investment arbitration in China; fourth, according to the Agreement, ICSID hearing facilities in the World Bank will also be used for SCIA commercial arbitration cases in the eastern United States, and both sides will provide hearing-related services for each other, which is beneficial for Chinese companies to resolve commercial disputes conveniently in the United States.

Chairman SHEN Sibao making remarks

President LIU Xiaochun making remarks

Chairman SHEN Sibao and President LIU Xiaochun leading a delegation to visit ICSID

Chairman SHEN Sibao and President LIU Xiaochun leading a delegation to visit ICSID

ICSID hearing facilities

ICSID hearing facilities

ICSID hearing facilities

ICSID hearing facilities

ICSID hearing facilities