{"id":39499,"date":"2025-12-03T12:04:13","date_gmt":"2025-12-03T12:04:13","guid":{"rendered":"https:\/\/www.cdr-news.com\/?p=39499"},"modified":"2025-12-09T10:54:19","modified_gmt":"2025-12-09T10:54:19","slug":"law2025-belt-road-presents-divergent-legal-cultural-and-practical-norms","status":"publish","type":"post","link":"https:\/\/www.cdr-news.com\/categories\/arbitration-adr\/law2025-belt-road-presents-divergent-legal-cultural-and-practical-norms\/","title":{"rendered":"LAW2025: Belt & Road presents divergent legal, cultural and practical norms"},"content":{"rendered":"\n

CDR<\/em><\/strong>\u2019s London Arbitration Week panel looked at cultural and practical distinctions in disputes arising from China\u2019s Belt & Road Initiative and other major infrastructure projects.<\/strong><\/p>\n\n\n\n

International infrastructure disputes, especially those arising from China\u2019s vast Belt & Road Initiative<\/a> (BRI), generate a vast quantity of disputes work across Asia, the Middle East, Africa and Europe, according to an event during the inaugural London Arbitration Week<\/a>.<\/p>\n\n\n\n

Hosted by CDR<\/em>, \u2018Infrastructure Arbitration: Belt & Road and Beyond\u2019, heard from a panel of arbitrators and counsel on the variety of dispute resolution mechanisms used for these high-value and politically important projects.<\/p>\n\n\n\n

CDR<\/em> editor-in-chief Andrew Mizner confirmed the sheer scale of the BRI, with official statistics valuing the total quantum of construction and investment contracts at USD 1 trillion, and at USD 124 billion for the first half of 2025 alone: \u201cSuch a large project would merit attention at any time. But when international trade and finance are under extreme pressure, that attention is only magnified.\u201d<\/p>\n\n\n\n

Dr Colin Ong KC, who practises as a barrister and arbitrator at 36 Stone and Singaporean firm Eldan Law, summarised the dispute resolution mechanisms available, pointing out that there is still not a precise definition of the jurisdictions involved: \u201cThe number of BRI countries ranges from 66 to 120, depending on how you define the BRI projects,\u201d he said, adding: \u201cOne thing is certain: you need a Chinese party involved in the contract.\u201d He also spoke of the huge and diverse geographical area covered by the initiative, which has seen construction projects being initiated across the Association of Southeast Asian Nations (ASEAN) region, the Arabian Peninsula and Africa.<\/p>\n\n\n\n

In terms of current dispute resolution mechanisms, Dr Ong explained the Chinese preference for mediation in the wake of the advent of<\/a> the Singapore Convention on Mediation<\/a>, which raised its profile as a final and binding choice of alternative dispute resolution (ADR).<\/p>\n\n\n\n

He suggested that an impartial BRI-dedicated dispute resolution centre, based in a similarly neutral location such as the Peace Palace in The Hague or in Singapore, could foster mutual understanding of widely differing cultural norms, by hearing disputes, publishing \u201csanitised awards, and having academies providing training \u2013 that\u2019s one way to solve disputes caused by cross-cultural [mis]understanding, and to reduce hostility where civil and common law worlds meet\u201d.<\/p>\n\n\n\n

Belt and Road philosophy<\/strong><\/h3>\n\n\n\n

Stephen Nathan KC, a barrister at Blackstone Chambers with litigation and arbitration experience including in Southeast Asia, confirmed the BRI\u2019s massive scale, and described the project\u2019s ethos thus: \u201cThe whole idea of it reflects the classic Chinese government approach, looking at things from a long-term perspective \u2013 investment in foreign countries \u2013 rather than the short-termism in the West which is defined by short-term politics.\u201d Nathan noted the Chinese government\u2019s greater acceptance and encouragement of arbitration over a relatively short 15-year period, and pointed out that the few Southeast Asian countries who have not adopted the United Nations Commission on International Trade Law Model Law on International Commercial Arbitration (UNCITRAL Model Law), have adopted similar provisions which achieve much the same result, concluding: \u201cArbitration is readily available in Southeast Asia in the context of BRI contracts and disputes arising from them.\u201d<\/p>\n\n\n\n

Sarah Mather, a legal director at Kennedys in London, described the situation in the Middle East, calling upon her previous experience working in Dubai. She reported at a 2017 BRI conference where Chinese President Xi Jinping \u201cspoke of \u2018a sustainable system that keeps risk under control, boosts mutual understanding and respect between different countries\u2019. This [trust and cooperation] ethos and [associated] principles have more in common with a new engineering contract (NEC), and you just don\u2019t see that in the Middle East where everything is under FIDIC\u201d or the F\u00e9d\u00e9ration Internationale Des Ing\u00e9nieurs-Conseils<\/em>, a framework she found \u201cadministratively burdensome\u201d. With adjudication boards in the region also characterised by \u201clong laborious procedures\u201d, she concluded: \u201cMediation is not widely accepted in the Middle East; but it probably should be.\u201d<\/p>\n\n\n\n

Giving the Central Asian perspective was Professor Kamalia Mehtiyeva of University Paris-Est Cr\u00e9teil and president of the newly launched Baku Arbitration Centre. She characterised the BRI as going beyond the ambit of simple commercial partnerships and infrastructure: \u201cThere\u2019s always an underlying political and regional strategic cooperation behind it. One of the reasons why BRI projects are structured as a joint venture or private participation in infrastructure, is that the state remains an important economic factor; however, funding is needed. This explains the dispute resolution methods, and the approach.\u201d She spoke of such development as an \u201cobvious solution\u201d to the lack of uniform understanding between regional states, and the comparatively undeveloped arbitration infrastructure in the former Soviet republics and beyond, and expressed hope that the situation would continue to improve.<\/p>\n\n\n\n

William Jia Huai-Yuan, a partner and director of DeHeng Law Offices\u2019 Dubai office who splits his time between Dubai and Riyadh<\/a>, spoke of the range of construction dispute resolution methods available in the Middle East, including disputes boards as well as arbitration and litigation, and the difficulty in advising which one to use. \u201cWhen a client or Chinese contractor asks me about a dispute resolution clause, I would say it depends on the judicial environment,\u201d he said, declaring that 20 years later, he is now much more confident about going to local courts in Dubai. He contrasted this with Saudi Arabia where he always suggested mediation, because any overt legal action might effectively disqualify a contractor from being awarded further work in the kingdom, on account of the small number of Saudi investors in existence.<\/p>\n\n\n\n

Different methods<\/strong><\/h3>\n\n\n\n

On the best way to resolve infrastructure disputes, Nathan opined that \u201carbitration is quicker than litigation, invariably and with rare exceptions\u201d, while the success of mediation is \u201chugely dependent on the quality of the mediator\u201d. Mather suggested the two ADR methods could operate in tandem: \u201cIt is helpful to have mediation alongside arbitration, keep the mediator involved and have several meetings with them afterwards.\u201d<\/p>\n\n\n\n

Mehtiyeva wanted to see more attention paid to the cultural aspect when arbitral institutions appoint arbitrators, who should have knowledge \u201cnot only of the dispute, but also the region\u201d, a point echoed by Ong: \u201cSome cultures will say \u2018yes\u2019 or \u2018no\u2019, but in other [countries] like Indonesia it\u2019s rude to say \u2018no\u2019.\u201d Jia saw little need for new ways of resolving disagreements among the many methods available currently: \u201cAll the dispute resolution mechanisms are enough to settle disputes now.\u201d<\/p>\n\n\n\n

London Arbitration Week:<\/em><\/p>\n\n\n\n

Belt & Road presents divergent legal, cultural and practical norms<\/em><\/a><\/p>\n\n\n\n

Call to refresh arbitration and protect rule of law<\/em><\/a><\/p>\n\n\n\n

Arbitration slammed for losing its way<\/em><\/a><\/p>\n\n\n\n

Construction spats lacking right legal teams and direction<\/em><\/a><\/p>\n\n\n\n

Construction challenges; Ciarb changeover<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

CDR\u2019s London Arbitration Week panel looked at cultural and practical distinctions in disputes arising from China\u2019s Belt & Road Initiative and other major infrastructure projects. <\/p>\n","protected":false},"author":14,"featured_media":39500,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[30],"tags":[4885,12156,6443,891,292,11402,1208,11379,11380,174,1018,5200,4416,396],"class_list":["post-39499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arbitration-adr","tag-36-stone","tag-baku-arbitration-centre","tag-belt-and-road-initiative","tag-blackstone-chambers","tag-china","tag-eldan-law","tag-kennedys","tag-london-arbitration-week","tag-london-arbitration-week-2025","tag-mediation","tag-middle-east","tag-singapore-convention-on-mediation","tag-southeast-asia","tag-uncitral-model-law"],"yoast_head":"\nLAW2025: Belt & Road presents divergent legal, cultural and practical norms - 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