Establishment of a Belt and Road Dispute Settlement Mechanism

Abstract

Considering the large number of civil, commercial and investment disputes that arise between Chinese investors and their counterparts along the Belt and Road, it is necessary to establish a dispute settlement mechanism. The open, cooperative and non-institutionalized features of the Belt and Road Initiative require the reform and improvement of China's domestic dispute settlement mechanism for foreign civil, commercial and investment disputes; and bilateral and multilateral dispute settlement mechanisms between or among China and the Belt and Road countries should be strengthened. When appropriate, China may propose the establishment of a multilateral dispute settlement mechanism that is especially designed for the Initiative. The status quo of dispute settlement mechanisms between China and the Belt and Road countries necessitates the establishment of a preset mechanism that uses arbitration as the primary approach, litigation as the secondary approach, and mediation as an alternative.