Hong Kong Arbitration Community Unfazed bynational securityLaws

Hong Kong Bar Association Chairman Victor Dawes has expressed confidence that the international arbitration community remains largely unconcerned about Hong Kong's national security laws. Dawes believes that those familiar with the city's arbitration process trust in the independence and experience of the judiciary to handle cases fairly.

Why this matters: The confidence of the arbitration community in Hong Kong's judiciary is crucial for the city's status as a leading arbitration hub, which has implications for international trade and commerce. As Hong Kong navigates its role in the face of regional competition and concerns over national security legislation, its ability to maintain trust in its arbitration process will have far-reaching consequences for businesses and investors worldwide.

"I think people who are in the know, who are within the arbitration community, you see very few questions are asked about national security legislations in the arbitration circle because they are familiar with the process," Dawes stated. He emphasized that an independent arbitral tribunal would not be affected by the security laws passed in Hong Kong, including the domestic legislation enacted in March 2023 and the law imposed by Beijing in 2020.

Some legal analysts have raised concerns that the 2020 legislation could add risks for foreign firms in all legal disputes, including arbitration, potentially driving them to choose jurisdictions outside China such as Singapore. However, Dawes shared an anecdote about convincing an overseas client who was initially worried about losing in arbitration against a Chinese state-owned enterprise that Hong Kong was no different than other places in terms of outcomes and fairness.

Dawes highlighted the independence of Hong Kong's judiciary, staffed by experienced judges, as a key factor that should give the business community greater incentive to choose the city as an arbitration hub. He and Joanne Lau, Secretary General of the Hong Kong International Arbitration Centre, agreed that visitors to Hong Kong would gain a better understanding of the local situation and ease any concerns about the national security laws.

The Colloquium on Arbitration event, jointly organized by the Hong Kong Bar Association and the Hong Kong International Arbitration Centre, was held on Saturday and attended by about 140 people from around 20 legal jurisdictions. The event serves as a prelude to the 26th International Council for Commercial Arbitration Congress, which will take place from May 5 to May 8, 2024.

Dawes and Lau also addressed Hong Kong's role amid the rise of emerging arbitration institutions in mainland China and regional counterpart Singapore. They emphasized Hong Kong's strengths, including its experience handling China-related disputes, language abilities, and understanding of cross-border business culture. Secretary for Justice Paul Lam Ting-kwok noted that Hong Kong has consistently been voted one of the top five preferred seats for arbitration globally since 2015.

As Hong Kong continues to navigate its role as a leading arbitration hub, the confidence expressed by Victor Dawes in the city's judiciary and the upcoming International Council for Commercial Arbitration Congress demonstrate the ongoing efforts to maintain its position in the face of regional competition and concerns over national security legislation.

Key Takeaways

• Hong Kong Bar Association Chairman Victor Dawes is confident in the city's arbitration process despite national security laws.
• The independence and experience of Hong Kong's judiciary are key factors in maintaining trust in its arbitration process.
• Concerns over national security laws may drive foreign firms to choose other jurisdictions, such as Singapore.
• Hong Kong's strengths in arbitration include its experience with China-related disputes and cross-border business culture.
• Hong Kong has consistently been voted one of the top five preferred seats for arbitration globally since 2015.