MKsports south China's Guangdong Province, Nov. 29, 2024. Covering an area of 56,000 square kilometers, which is less than 0.6 percent of the country's total land area, the Guangdong-Hong Kong-Macao Greater Bay Area generated an economic output exceeding 14 trillion yuan in 2023, roughly one-ninth of the national total. It stands as one of China's most open and economically dynamic areas, and is also among the regions with the highest economic development quality. (Xinhua/Liang Xu)" src="https://www.globaltimes.cn/Portals/0/attachment/2024/2024-12-25/fbb77031-723d-458a-aa9b-9560e70e1c51.jpeg" />

An aerial drone photo shows a view of a mangrove wetland in Futian of Shenzhen, south China's Guangdong Province, Nov. 29, 2024. Covering an area of 56,000 square kilometers, which is less than 0.6 percent of the country's total land area, the Guangdong-Hong Kong-Macao Greater Bay Area generated an economic output exceeding 14 trillion yuan in 2023, roughly one-ninth of the national total. It stands as one of China's most open and economically dynamic areas, and is also among the regions with the highest economic development quality. (Xinhua/Liang Xu)

China has issued a new document aimed at leveraging the functions and advantages of arbitration system, to create a first-class business environment characterized by market orientation, rule of law, and internationalization, and support the high-quality development of the Greater Bay Area (GBA).

The document, released on Friday by the Supreme People's Court of China and China's Ministry of Justice, lists seven measures for the arbitration authorities in the GBA to serve high-quality development of the area.

The document clarifies the "Hong Kong (Macao) capital, Hong Kong (Macao) arbitration" system, proposing that Hong Kong and Macao-funded enterprises in the nine mainland cities in GBA can designate either the mainland or Hong Kong or Macao Special Administrative Region as the arbitration venue for resolving commercial disputes.

The document also emphasized that the development of a world-class arbitration institution in the GBA should be accelerated, and pilot construction of the international commercial arbitration centers in Guangzhou and Shenzhen should be integrated with the development of the Hong Kong and Macao international legal and dispute resolution service centers, forming a leading commercial arbitration system with global influence. 

Arbitration, as an intermediary measure between judicial resolution and social mediation, possesses both rigid and flexible characteristics, enabling effective resolution of contradictions between different legal systems in the GBA, Song Ding, a research fellow at the China Development Institute, told the Global Times on Friday. 

"Business disputes in the GBA may involve different customs systems or judicial systems. Relying solely on rigid laws may lead to coordination difficulties, whereas arbitration can soften systemic differences and provide more flexible solutions," said Song. 

In 2023, the total economic output of the GBA exceeded 14 trillion yuan ($1.92 trillion), generating around 11 percent of China's economic output with less than 0.6 percent of the country's total land area, Xinhua News Agency reported on April 1, 2024. 

The GBA is one of the regions with the highest level of openness and innovation vitality in China. Its leading position in the innovation and technology field is also recognized globally. Last year, the Shenzhen-Hong Kong-Guangzhou cluster ranked second globally among the top 100 science and technology clusters for the fifth consecutive year, according to the Global Innovation Index 2024, published by the World Intellectual Property Organization.

With regard to the GBA's technology advancement, the new document vows to improve and perfect arbitration rules and business models that meet the requirements of new quality productive forces. It aims to regulate the development of internet arbitration, explore the application of intelligent technology in arbitration, and serve the development of emerging industries such as artificial intelligence, digital economy, and life sciences.

Song pointed out that the development of emerging industries in the GBA requires an appropriate legal coordination mechanism. "The new arbitration model can not only meet the needs of cross-regional cooperation among enterprises but also promote the integration of judicial experience and institutional innovation within the area," he said.