A study on cross-border arbitration in construction disputes within the Belt and road initiative and Greater Bay area : opportunities and challenges

Abstract

The study aims to understand the opportunities and challenges faced by Hong Kong in securing market shares in Belt and Road construction arbitration. The Belt and Road Initiatives were founded in 2017. The majority of cross-border infrastructure projects are in developing nations and aim to integrate and foster regional economic growth. Dispute are not uncommon in construction projects. However, the different legal systems and their significant political, financial, and social consequences in the developing countries have further increased the likelihood of conflicts in this kind of cross-border infrastructure. In light of this, Hong Kong has long been recognised as a premier location for international legal and dispute services. Furthermore, Hong Kong is also an ideal location for PRC firms working in the Belt and Road countries. As a result, the Belt and Road construction disputes have opened up tremendous opportunities for Hong Kong. Despite opportunities, Hong Kong faces intensifying competition from rival hubs like Singapore and many aspiring arbitration institutions like Beijing, etc. The study begins by examining the background information on the Belt and Road initiatives and Greater Bay Area. Arbitration is the most common mechanism used to resolve these cross-countries construction disputes. Despite the substantial amount of infrastructure and construction projects under the Belt and Road Initiative, there exists a research gap regarding Belt and Road construction-related arbitration. It is hoped that the research will help in developing an comprehensive understanding of the opportunities and challenges, thereby providing recommendations to assist Hong Kong in attracting a greater share of Belt and Road initiatives. This could enhance Hong Kong's regional arbitration standing within the current competitive arbitration landscape. Moreover, the recommendation is expected to serve as a reference for Hong Kong arbitration positioning within the Greater Bay Area. Literature and various industry reports have been reviewed to understand the current landscape of BRI construction arbitration. Singapore and Beijing dominate market shares; hence, Hong Kong might draw insights from their experiences to enhance case attraction in the future. An analysis of the strategies and unique attractions of Singapore and Beijing is conducted. This establishes a basis for designing questions to be asked in the questionnaires and interviews to determine if certain strategies may be implemented in Hong Kong. The questionnaires and interviews are distributed to HKIAC arbitrators, including those from Hong Kong and other Belt and Road jurisdictions, to gather a thorough understanding and develop recommendations. From the results of the questionnaire and interviews, there are few key strategies that Hong Kong may consider to apply in the future. This includes encouraging more BRI arbitrators to work in Hong Kong, employing targeted marketing rather than generic marketing, and engaging in active collaboration with other arbitration institutions to learn from their practices. Furthermore, conducting more conferences and forums in Belt and Road nations can enhance the promotion of Hong Kong, eliminate perceptions regarding bias, and highlight its distinctive advantages, including cost-effectiveness and transparency compared to other jurisdictions. Additionally, enhancing the synergistic effects with the GBA. In the end, although online arbitration platforms encounter strong competition from traditional procedures, there exists a substantial market for Belt and Road construction arbitration. Therefore, online arbitration systems established by professional organizations should emphasize their distinctive features, particularly procedural elements, to draw users.