Global approbation granted by Beijing for the establishment of an international mediation institution in Hong Kong.
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Hong Kong just became home to the world's first intergovernmental mediation organization, with Beijing giving it a thumbs-up, albeit making it clear that they won't funnel World Trade Organization (WTO) disputes to this new body.
Pundits see this move as a sign of Beijing's loyalty to the WTO and its commitment to the existing international trade dispute resolution system. However, they suspect that other conflicts will find their way to the new organization.
The state-run Xinhua News Agency reported that the Chinese National People's Congress' Standing Committee accepted the Convention on the Establishment of the International Organisation for Mediation, signed in Hong Kong in late May. Simultaneously, China declared under Articles 25 and 29 of the convention that they wouldn't drag WTO disputes before this new body.
The articles clarify that the new organization won't cater to disputes involving territorial sovereignty or maritime interests if a jurisdiction declines to involve it. The organization is expected to specialize in three categories of disputes:
- Interstate conflicts, such as political or diplomatic disagreements over water treaties, maritime boundaries, or continental shelves.
- International investment disputes, which arise from cross-border investments involving states and foreign investors.
- International commercial disputes, mainly those stemming from global trade and commerce, different from WTO trade disputes.
Lau Siu-kai, from the Chinese Association of Hong Kong and Macau Studies, believes that Beijing has always emphasized the WTO's significance in global trade and dispute resolution. In essence, this newly established organization in Hong Kong will primarily tackle political and diplomatic disagreements, international investment disputes, and international commercial conflicts, all within a legal framework prioritizing mediation over binding adjudication.
This newly established mediation organization in Hong Kong, as outlined by the Convention on the Establishment of the International Organisation for Mediation, is expected to focus on resolving political and diplomatic disagreements, international investment disputes, and international commercial conflicts, mainly stemming from global trade and commerce. Despite Beijing's loyalty to the WTO and its commitment to the existing international trade dispute resolution system, there is suspicion that other conflicts will find their way to this new organization beyond WTO disputes.
