Hong Kong to handle arbitration cases in deal with international court

Hong Kong will begin to hold arbitration for disputes involving states and private and public companies, after China and the city signed agreements with an international court.

The agreement with the Permanent Court of Arbitration, based in The Hague, Netherlands, means Hong Kong could handle many of its outstanding cases involving Asian parties.

The PCA provides dispute resolution services to the international community, handling cases such as the simmering maritime dispute between the mainland and the Philippines.

Deputy Foreign Minister Liu Zhenmin signed the Host Country Agreement with the PCA in Beijing yesterday, while Hong Kong's Secretary for Justice Rimsky Yuen Kwok-keung signed a related memorandum that would let the city conduct the hearing of such disputes.

Yuen said there was increasing demand for arbitration services for disputes in Asia involving states, intergovernmental organisations, and private parties, and the city could conduct cases as assigned by the PCA.

"Not only does Hong Kong enjoy judicial independence, it accords utmost importance to the rule of law, and hence is an ideal venue for conducting international arbitration," Yuen said.