Editorial | Hong Kong has room to grow into a global hub for arbitration
More Hong Kong lawyers in the London Court of International Arbitration’s database would complement the city’s dispute resolution efforts
The visit bore fruit, allowing interaction with other legal sectors and opening a door for the city’s barristers to be selected for arbitration work in London. Maurellet took part in an official trip to the London Court of International Arbitration (LCIA). He revealed that the institution, established in 1892, would welcome applications from Hong Kong lawyers to be included in its database, making them available to be chosen as arbitrators in disputes it handles. This would be a welcome development.
London is the world’s most popular seat for arbitration, according to an annual global survey conducted by Queen Mary University of London. Singapore and Hong Kong are tied in second place. More than half of the arbitrators selected by the LCIA last year were not British. There have been years when almost 20 per cent of its cases came from Asia. There is plenty of potential for Hong Kong’s arbitrators, given the qualities they can bring. Their common law qualifications, language skills and experience in dealing with Asian parties were all, justifiably, cited as reasons why they would be suitable. It is an opportunity that should be grasped.
Cases administered by the LCIA do not have to be heard in London or even use English law, although most do. The presence of Hong Kong arbitrators on the database would complement rather than detract from the city’s drive to further establish its role as an international centre for alternative dispute resolution.
Hong Kong is the top destination for arbitration in the Asia-Pacific, but unlike Singapore, it does not feature in the top five for other regions. There is room for growth. The role to be played by the city in developing the Greater Bay Area, which also includes Macau and nine mainland cities, will involve offering alternative dispute resolution services. Beijing’s Belt and Road Initiative will also increase demand.
China amended its arbitration law last month, allowing organisations in Hong Kong to offer services in the mainland’s free trade zones. In a landmark development in May, the world’s first international mediation body in Hong Kong was approved. Due to open this year, it will resolve disputes involving states.