China's Supreme Court holds public hearing on Sino-foreign commercial dispute

The Second International Commercial Court of the Supreme People's Court holds a public hearing in Shanghai on April 10, 2025. (Photo provided to chinadaily.com.cn)

The Second International Commercial Court of the Supreme People's Court held a public hearing in Shanghai on April 10 for a commercial dispute involving Chinese and foreign shareholders and directors over contributions.

The case touched upon typical issues in foreign-related commercial disputes, such as boundaries regarding shareholder rights and the identification of significant related-party transactions in the operation of Sino-foreign joint ventures.

Originally accepted by a Shanghai court, the case was later taken over by the supreme court to exercise jurisdiction due to its complexity.

In order to facilitate the parties involved, the Second International Commercial Court of the SPC conducted the hearing in Shanghai, and invited deputies to the National People's Congress, the country's legislative body, foreign experts and representatives from foreign investment associations, to observe.

Attendees praised the hearing as a model of a standardized, rigorous and efficient legal proceeding. They said the judges demonstrated profound legal expertise, sharp insights into regulations, and adept courtroom skills by accurately pinpointing the focal points of the case, meticulously analyzing evidence, and providing legal interpretations.

They said such public hearings showcased China's professional standards and international perspective in handling foreign-related commercial disputes, setting a benchmark for similar cases.

Foreign observers noted the use of advanced simultaneous interpretation systems during the hearing, greatly facilitated their understanding and participation in the proceeding.

Such a form of hearing provided clear legal guidance for both domestic and foreign commercial entities, highlighting China's commitment to equally protecting the legitimate rights and interests of all parties involved. It also exhibited the country's proactive efforts in creating a top-tier business environment that is market-oriented, internationalized and abides by the rule of law.