Resolving disputes between parties of different nationalities through arbitration by a third-country arbitration institution is referred to as “international arbitration.” Traditional international arbitration hubs are Paris, France, and London, UK. However, Hong Kong is recognized as Asia’s leading international arbitration hub. Despite Hong Kong’s sovereignty being returned to China in 1997, it continues to follow common law and maintains the “One Country, Two Systems” framework, making it a gateway for foreign companies entering China.
The Hong Kong Department of Justice’s International Law Division has played a significant role in solidifying Hong Kong’s status as an international arbitration hub by handling multilateral treaties, bilateral agreements, and other international legal issues. The Department of Justice comprises six legal divisions, each led by a Law Officer. The Law Officer for International Law directly reports to the Secretary for Justice on matters related to international law and legal cooperation. ChosunBiz recently interviewed James Ding, Hong Kong’s Law Officer (International Law), who visited South Korea to attend the “APEC 2025 Informal Senior Officials’ Meeting (ISOM)” as the Chair of the Economic Committee.
What are your responsibilities as the Law Officer (International Law)?
“I oversee all international law issues for the Hong Kong government. This includes reviewing international treaties such as the Paris Climate Agreement from Hong Kong Government’s perspective and advising various departments on international legal matters like Free Trade Agreements (FTA). Our division also handles mutual legal assistance, including extradition. For example, we recently decided to freeze illegal funds remitted to Hong Kong banks from other jurisdictions. Furthermore, with the official launch of the ‘Hong Kong International Legal Talents Training Academy’ last month, we have been focusing on cultivating talent in international law through practical training, seminars, and exchange programs.”
What are Hong Kong’s strengths as an international arbitration hub?
“Hong Kong’s strengths lie in its common law system and bilingual framework. It is the only jurisdiction in China that follows common law, with its legal system built upon this foundation. English and Chinese are both official languages, enabling legal proceedings to be conducted in both languages. These features make Hong Kong a preferred starting point for companies entering China. Additionally, Hong Kong offers a systematic approach to resolving disputes involving companies from the Guangdong-Hong Kong-Macao Greater Bay Area.
Another advantage is the abundance of legal talent. Hong Kong’s legal profession under the common law system is divided into Solicitors, who handle advisory work and drafting contracts outside the courtroom, and Barristers, who specialize in courtroom advocacy. Currently, about 10,000 solicitors and 1,500 barristers are active in Hong Kong. There are about 1,000 law firms, and approximately 1,500 registered foreign lawyers. This talent pool has propelled Hong Kong’s development as an international legal hub.
Hong Kong also has a mutual assistance agreement with mainland China on ‘Court-ordered Interim Measures’. This means that parties to arbitral proceedings seated in Hong Kong and administered by eligible arbitral institutions which have been designated would be able to apply for interim measures from the relevant courts in mainland China. For instance, if an asset-freezing order is made in Hong Kong, the same measure can be implemented in China after undergoing certain procedures, making it possible to prevent attempts to evade the asset freeze. This level of cross-border enforcement is unique to Hong Kong and China and does not apply to other arbitration hubs like Singapore or London.
These advantages led to Hong Kong being ranked the third most popular arbitration hub globally in a survey by Queen Mary University in the UK.”
How does economic integration with mainland China affect Hong Kong?
“Hong Kong has a completely independent judiciary separate from mainland China, with its own Court of Final Appeal. Thus, even when China ratifies an international treaty, separate procedures are required for it to apply to Hong Kong, and vice versa. For example, China is not a signatory to the Hague Convention on the Civil Aspects of International Child Abduction, but the Convention continues to apply to Hong Kong. Hong Kong currently participates in over 260 multilateral agreements.
Mainland China also actively supports Hong Kong’s role as an international law hub. Currently, the establishment of the International Organization for Mediation (IOMed), which aims to promote win-win cooperation among disputing parties, is underway, and China took the lead in setting up its preparatory office in Hong Kong last year. IOMed is expected to become the world’s first intergovernmental legal organization, specializing in mediation for resolution of international disputes. Mainland China also supported setting up the regional office of the Asian-African Legal Consultative Organization (AALCO) in Hong Kong.”
Could you explain the role of the APEC Economic Committee and its key issues?
“The APEC Economic Committee (EC) is one of APEC’s main sub-organizations, focused on structural reforms to enhance member economies’ growth and productivity. Its goals include improving regulatory environments, promoting competition, enhancing corporate governance, increasing the efficiency of public services, and advancing economic inclusivity. I was elected as the Chair of the EC in 2019 and have been re-elected twice. Drawing on my experience as Hong Kong’s Law Officer (International Law), I strive to help the committee achieve its objectives by maximizing the use of legal tools.
A recent key issue is Online Dispute Resolution (ODR), which involves resolving international disputes via digital platforms without physical meetings. APEC adopted the APEC Collaborative Framework for ODR of Cross-Border B2B Disputes (ODR framework) in 2019, and implementation began in 2022. ODR conducts all processes online, including mediation, evidence submission, and hearings, significantly reducing both costs and time. From available statistics, the introduction of ODR has shortened dispute resolution time from 440 days to 37 days. Following a sequence of “negotiation → mediation → arbitration,” around 70% of disputes are resolved before reaching arbitration, further saving on legal fees. As one of the seven APEC economies that have opted-into the ODR framework, Hong Kong, China has developed a robust ODR system early on, further cementing its position as an international arbitration hub.”
How does Hong Kong, China contribute to APEC’s cooperation and development?
“Hong Kong, China actively supports APEC’s capacity-building efforts. Specifically, we donated approximately USD 1 million (about 1.5 billion won) this year to enhance economic and legal infrastructure in the Asia-Pacific region. The funds are primarily used to organize capacity-building workshops (including on ODR) across various locations in the region. Since understanding ODR is essential for adopting the framework, APEC plans to hold additional workshops to encourage broader participation in ODR throughout the APEC region. Last year, we conducted an ODR workshop in Indonesia, which successfully facilitated the economy’s adoption of the ODR framework.”
