JTN-China Dispute Resolution Newsletter_June 2026

NEWS ALERT

1. Revised PRC Maritime Law and Accompanying Judicial Interpretation Take Effect

On 1 May 2026, the comprehensively amended PRC Maritime Law and the Supreme People’s Court’s accompanying Judicial Interpretation on Temporal Validity entered into force, marking the Maritime Law’s first major overhaul since 1992. The revised framework is deeply rooted in international harmonization. Key chapters—including Passenger Carriage, Ship Collisions, Marine Salvage, and Limitation of Liability for Maritime Claims—fully incorporate major international conventions (such as the 1974 Athens Convention, 1910 Collision Convention, 1989 Salvage Convention, and 1976 LLMC). Additionally, provisions governing ship mortgages, maritime liens, cargo carriage, general average, charter parties, towage, and marine insurance have been updated to reflect widely adopted standard form contracts and global best practices. Key highlights of this milestone revision include, but are not limited to: (1) Digitalization: recognizes the legal status of electronic transport records based on the principles of functional equivalence and non-discrimination. (2) Green Shipping: introduces a dedicated chapter on ship-sourced oil pollution liability, filling a critical gap in China’s private maritime law. (3) Countermeasures: establishes provisions to safeguard China’s shipping and shipbuilding sectors against unlawful containment or restrictive foreign measures. (4) Liability Caps: prudently increases limits of liability for maritime claims and passenger personal injury or death. (5) Statutory Timelines: expands the recognized grounds for interrupting statutory limitation periods. As one of the world’s busiest maritime jurisdictions, China has distilled over thirty years of judicial and shipping experience into this legislative milestone. These institutional innovations will significantly bolster China’s maritime rule of law and its foreign-related legal framework.

https://www.court.gov.cn/fabu/xiangqing/498581.html

2. State Council Promulgates the Regulations on Countering Unjustified Foreign Extraterritorial Jurisdiction

Under State Council Decree No. 835, China has enacted the Regulations on Countering Unjustified Extraterritorial Application of Foreign Legislation. The regulation was passed on 27 March 2026, and effective 13 April 2026. This landmark administrative decree marks a transition from ad-hoc policy responses to a formalized, national-level rule of law framework. Consisting of 20 concise provisions, the regulation establishes a complete institutional chain: (1) Identification & Blocking: establishes formal mechanisms to evaluate and officially ban offensive foreign measures. (2) Injunctions & Remedies: introduces “prohibition orders” against complying with foreign laws and grants Chinese companies a private right of action to sue for civil damages in domestic courts. (3) State Countermeasures: authorizes retaliation and listings under the Unreliable Entity List. (4) Exemptions & Penalties: allows compliance licensing pathways for exceptional cases while prescribing strict penalties for unauthorized adherence to blocked foreign regimes. The codification of statutory blocking injunctions, civil lawsuit risks, and strict penalties significantly alters the cross-border compliance landscape. Companies operating in or with China must urgently re-evaluate their compliance strategies to manage conflicting international legal  obligations.

https://www.gov.cn/gongbao/2026/issue_12706/202604/content_7067358.html

3. State Council Issues Provisions on Outbound Investment

On 17 April 2026, the State Council passed the Provisions on Outbound Investment, which will be officially implemented on 1 July 2026, unifying the fragmented Outbound Direct Investment (ODI) framework into a comprehensive administrative regulation. Key highlights include: (1) Full-Lifecycle Safeguards and Diversified Dispute Resolution: The Provisions build a “pre-, mid-, and post-investment” protective chain that integrates state risk monitoring and consular assistance with market-based self-rescue, explicitly encouraging investors to resolve conflicts through consultation, mediation, arbitration, and litigation. (2) Outbound Investment Barrier Investigations: The Provisions explicitly mandate that if Chinese investors encounter trade-related investment barriers or other operational obstacles in host countries, competent departments under the State Council have the authority to organize and conduct formal investigations. (3) Multi-dimensional Reciprocal Countermeasures: In response to countries, regions, or international organizations that adopt discriminatory prohibitions, restrictions, or similar measures, relevant departments may enforce corresponding reciprocal countermeasures based on the actual circumstances. Furthermore, for foreign organizations or individuals that endanger China’s national sovereignty, security, and development interests, or enforce discriminatory measures against Chinese investors and outbound investments, the competent departments are legally empowered to take corresponding countermeasures. (4) Strict Market Order and Compliance Boundaries: The Provisions define clear legal liabilities and strict penalties for actions that disrupt market order or violate laws concerning technology exports, data security, and export controls, guiding expanding enterprises to cultivate robust compliance awareness.

http://politics.people.com.cn/n1/2026/0602/c461001-40731918.html

4. Supreme People’s Court Releases Third Batch of Typical Cases of Foreign-Related Commercial and Maritime Mediation 

On 16 April 2026, the Supreme People’s Court released its Third Batch of Typical Cases of Foreign-Related Commercial and Maritime Mediation. The 6 cases cover key areas such as: (1) resolving a nearly decade-long RMB 310 million Sino-Korean investment dispute through circuit trials, achieving a “package” settlement; (2) leveraging bilingual “one-stop” mediation to secure immediate payment in a foreign maritime salvage case; and (3) completing online and offline vessel arrest, settlement, and release within 24 hours to resolve a RMB 40 million dispute. These cases demonstrate Chinese courts’ active application of “Eastern mediation wisdom” and smart court technology for efficient dispute resolution.

https://news.cctv.com/2026/04/16/ARTIdIO5fEPRk62Pd8blVMNu260416.shtml

5. Supreme People’s Court Releases 2025 Intellectual Property Typical Cases

On 20 April 2026, during the 2026 IP Publicity Week, the Supreme People’s Court released the “2025 Typical Intellectual Property Cases of People’s Courts”. Key highlights include: (1) demonstrating judicial protection in foreign-related high-tech, multinational trademark branding, and anti-unfair competition, such as protecting the “Lord George’s Tragedy” trademark and combatting malicious poaching of high-tech talent; (2) stringent trade secret protection – in a trade secret theft case involving multiple defendants, the court reaffirmed the illegality of internal collusion for trade secret misappropriation; and (3) significantly enhancing the application of punitive damages in bad-faith infringements, such as applying a triple damages multiplier in a criminal-civil overlapping case involving refurbished enterprise network switches. The release showcases Chinese courts’ commitment to cultivating an international legal environment, encouraging multinational corporations to proactively leverage Chinese judicial remedies for their core technologies.

https://www.court.gov.cn/zixun/xiangqing/497941.html

6. Supreme People’s Court Releases Second Batch of Typical Cases on Judicial Safeguards for the Western Land-Sea Corridor

On 23 April 2026, the Supreme People’s Court released its Second Batch of Typical Cases on Judicial Safeguards for the “Western Land-Sea Corridor” (a massive national logistics and trade infrastructure initiative connecting Western China to ASEAN markets) to unify judicial standards. Key highlights include: (1) Establishing the liability boundaries of multi-modal transport operators for cargo damage under maritime law. One ruling established that when an operator accepts a Lump-sum Price, they cannot demand extra fees for foreseeable operational risks and bear the comprehensive duty of care for cargo preservation throughout the entire transit corridor. (2) In handling cross-border financial disputes, courts have demonstrated efficient methods for handling complex legal conflicts and respecting party autonomy while facilitating the litigation process. For example, when a joint-and-several guarantee contract specifies a different jurisdiction than the principal contract, the guarantee court can independently assess the debt from evidence on record without a prior foreign judgment. These cases highlight the judicial achievements of the courts in resolving challenges in ascertaining foreign law and regulating cross-border trade, investment, and logistics.

https://www.court.gov.cn/zixun/xiangqing/498271.html

7. Supreme People's Court Releases First Batch of Typical Cases of Ascertainment and Application of Foreign Law

On 23 April 2026, the Supreme People’s Court disclosed its first batch of 5 typical cases on the China International Commercial Court (“CICC”) portal to guide the ascertainment and application of foreign law. Key established rules include: (1) affirming courts as the primary responsible subjects for foreign law ascertainment, prohibiting the simple default to Chinese law claiming foreign law is “unascertainable”; (2) supporting diversified ascertainment channels, such as professional institutions and legal-policy innovation centers co-established with academic institutions; and (3) permitting reasonable costs to be borne by the losing party. These cases provide procedural predictability and significantly address foreign entities’ concerns regarding biased applications of local law.

https://cicc.court.gov.cn/html/1/218/62/163/425/12923.html

8. BAC Launches Sports and Entertainment Arbitration Center

On 1 June 2026, the Beijing Arbitration Commission (BAC/BIAC) officially unveiled its powerhouse Sports and Entertainment Arbitration Center. The center was launching under the commission’s ambitious “1+N Commercial Arbitration Layout”. Key highlights include: (1) adjudicating high-stakes commercial disputes involving cross-border IP licensing, talent agency contracts, and sports broadcasting rights; (2) integrating specialized sports arbitration with traditional commercial frameworks; and (3) establishing an industry legal service alliance to provide end-to-end safeguards and dispute prevention for the creative sectors. With the cultural and entertainment sectors booming locally and globally, standard litigation no longer cuts it. The BAC’s new center delivers the bespoke, sophisticated, and confidential arbitration that modern cultural industry demands.

https://mp.weixin.qq.com/s/72kIV1o0a6SnLHZHob4-ww

9. Hong Kong High Court Announces Plan to Establish the Hong Kong International Commercial Court (HKICC)

On 28 May 2026, the Hong Kong Judiciary announced plans to establish the Hong Kong International Commercial Court (HKICC) within the next year. Operating as a specialized division under the High Court, the HKICC will adjudicate complex, high-value international and crossborder commercial disputes under the “One Country, Two Systems” framework, complementing Hong Kong’s existing arbitration and mediation services, and offering global businesses and investors a comprehensive suite of dispute resolution options. As reported, cases in HKICC will be heard by local judges with extensive commercial law experience, and prominent and experienced judges or legal practitioners from other common law jurisdictions may also be invited to adjudicate cases on an ad-hoc basis. Dedicated practice directions will be issued by the Hong Kong Judiciary in the future to specify the categories of cases falling within the court’s jurisdiction and the detailed court procedures. We will closely monitor these developments and provide updates as they arise.

https://www.xinhuanet.com/legal/20260528/94ba3e4231024b6a95c965925937f765/c.html

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