Recently, an arbitration award of the Hainan International Arbitration Court (HIAC) was successfully recognized and enforced by the High Court of Malaya.

The rule of law constitutes the most effective foundation for an optimal business environment. The international arbitration work of the HIAC, an important force in setting up a legal business environment for the Hainan Free Trade Port, has comprehensively promoted institutional system and mechanism reform, system creation, rule innovation, talent team building, international exchanges & cooperation along with performing other important work over the past five years, leaping from being a "local arbitration institution" to a "high ground for international dispute resolution", creating an attractive calling card for the development of the Hainan Free Trade Port.

The HIAC provided professional legal services to exhibitors at the 5th China International Consumer Products Expo. (Photo courtesy of the HIAC)

Institutional Restructuring forms a strong ballast

The arbitration award, which was successfully enforced in Malaysia, arose from a dispute over an international contract for the sale of goods between a company in China and a company in Malaysia. The contract stipulated that any dispute between the two parties would be subject to arbitration by the HIAC. The case would be decided under the United Nations Convention on Contracts for the International Sale of Goods and Malaysian law, and the arbitration language was English.

After accepting the case, the Hainan International Arbitration Court's international case management team initiated a full-process English management model, strictly followed international arbitration procedure norms, and ensured the transparency of the procedure and the fairness of the ruling. The two parties agreed on the selection of a Malaysian arbitrator from the HIAC’s arbitrator list. After the judgement was rendered, the ruling was recognized by the High Court of Malaya, demonstrating the international effectiveness of Hainan arbitration.

This case paints a vivid picture of the high-quality, efficient case handling and strengthening internationalization of the HIAC.

In 2020, the HIAC was the first court in China to complete institutional restructuring, establish a corporate governance structure led by a board of directors, and implement a governance mechanism with effective checks and balances in decision-making, execution, and supervision. This transformation allowed the court to exhibit the six international hallmarks of decision-making bodies: governance mechanisms, arbitration rules, arbitration teams, mediation mechanisms, enforcement bodies, and full alignment with advanced international arbitration standards and common practices. Over the past five years, the court has formulated and optimized over forty rules and regulations, laying a solid institutional foundation for arbitration reform in Hainan.

In July, 2022, the Commission for Overall Law-based Governance of the Communist Party of China Central Committee decided to open a pilot program of international commercial arbitration centers in Beijing, Shanghai, Guangdong and Hainan. Hainan was chosen as the site of an international commercial arbitration center serving the Hainan Free Trade Port and facing the Pacific and Indian Oceans. China's Supreme People’s Court has also included the Hainan International Arbitration Court in the one-stop diversified dispute resolution mechanism for international commercial disputes.

More Dispute Resolution Options Improve Resolution Quality and Efficiency

The First International Commercial Court of the Hainan Free Trade Port tasked the International Mediation Centre of the HIAC to mediate a sales dispute involving a Hong Kong resident. In order to best facilitate both parties, the mediator conducted remote mediation, addressing the following issues: contract termination filing, refund of goods, compensation for losses, and more, finally resulting in a mediation agreement and the successful resolution of the dispute.

In order to assist those involved in international cases and reduce the cost of dispute resolution, the Hainan International Arbitration Court and the First International Commercial Court of the Hainan Free Trade Port have established a "one-stop dispute resolution platform", which sends eligible cases to the HIAC International Mediation Centre for mediation before litigation. After successful mediation, arbitration procedures are initiated with the unanimous consent of all parties, and an arbitration mediation statement or award having the same legal force as a court ruling is prepared based on the mediation agreement.

This innovative measure creates a flexible connection between litigation, mediation, and arbitration, reduces the burden on courts, assists involved parties, ensures the enforceability of mediation agreements, and also injects strong legal momentum into the optimization of the Hainan FTP business environment.

In 2020, the HIAC established the International Mediation Centre, taking the lead in exploring a dual-track operation mechanism combining mediation with arbitration. After successful mediation, if the parties agree, the case can be directly transferred to arbitration and a ruling document can be issued, giving the mediation agreement both authority and enforceability. To date, the HIAC has established cooperative relationships with more than ten courts and mediation institutions, set up a diversified dispute resolution platform, effectively reduced pressure on the courts, and improved dispute resolution efficiency.

Over the past five years, the HIAC has accepted nearly 14,000 arbitration cases with a total value of more than 36 billion yuan, and has maintained a record of no arbitration awards being revoked by the court for five consecutive years. These numbers include 194 international cases. Both the amount and subject matter of commercial and international cases have achieved a historic breakthrough. Parties involved in the cases are citizens of over 20 countries and regions, with geographic coverage continuing to expand.

Innovative Development Expands Industry Services

In March, 2025, at the 2025 China Seed Congress and Nanfan Silicon Valley Forum, the Hainan International Arbitration Court issued the first domestic seed industry arbitration rules. “This is China's first specialized arbitration rule tailored for the protection of seed industry intellectual property rights and resolving seed industry disputes. It’s highly consistent with actual seed industry dispute needs and has important contemporary significance,” said Wang Jiabao, deputy director-general of the Department of Agriculture and Rural Affairs of Hainan Province.

On April 14, Hall 4 of the 5th China International Consumer Products Expo was crowded. The HIAC International Mediation Centre service team gave an introduction in the hall to the advantages of Hainan arbitration to international attendees. This marked the fifth year that the HIAC has provided services at the CICPE. As the event’s only officially designated commercial arbitration institution, the HIAC has developed a ‘full supply chain, full-time’ legal protection system for the expo by integrating domestic and international arbitration and mediation resources while also optimizing the cross-border service process.

“Hainan arbitration boasts an international service level, but is in need of more countries and companies to learn about and choose it. Showcasing the strengths of Hainan arbitration through international service exhibitions is the best promotion for Hainan arbitration,” said a representative of the HIAC.