The
International Organisation for Mediation (IOMed) headquarters, a
China-initiated body, is seen under construction for global dispute
resolution, in Hong Kong, China, May 29, 2025. REUTERS/Tyrone Siu/File
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China sets up international mediation body in Hong Kong
HONG
KONG, May 30 (Reuters) - China signed a convention setting up an
international organisation for mediation in Hong Kong on Friday that
Beijing hopes will be on par with the International Court of Justice and
bolster the city's international credentials.
The move comes amid growing geopolitical tensions
that have been exacerbated by U.S. President Donald Trump's global
trade war and fuelled risks of a sharp worldwide economic downturn.
The
mediation body aims to cement Hong Kong's presence as a top centre to
resolve disputes between countries, leader John Lee said earlier this
week, adding that it's status would be on par with the International
Court of Justice and the Permanent Court of Arbitration of the United
Nations in The Hague.
Indonesia,
Pakistan, Laos, Cambodia and Serbia were among the countries attending
the signing ceremony. Representatives from 20 international bodies
including the United Nations were also expected to join, public
broadcaster RTHK said.
A
video shown at the signing, which was presided by Chinese Foreign
Minister Wang Yi, said the scope of cases that would be handled include
disputes between countries, between a country and nationals of another
country and between private international entities.
The
mediation group could advance China's influence internationally and
promote a more assertive role for the world's second-largest economy in
global governance, some analysts said although its success remains to be
seen.
Alicia
Garcia-Herreo, chief Asia Pacific economist at Natixis, said the move
was good news for Hong Kong, however she cited arbitration centres in
Chinese cities Xian and Shenzhen which had not worked well.
"Hong
Kong has been offered as an alternative but I still think that
borrowers, especially borrowers or anybody with a Belt and Road contract
(BRI) related or with a Chinese leg will feel less protected nowadays,"
she said.
Hong
Kong tied with Singapore for second place, behind London, as the top
choice for a seat of arbitration in 2025, according to the 2025
International Arbitration Survey conducted by Queen Mary University of
London.
Hong
Kong's Justice Secretary Paul Lam said that the new body would help
Hong Kong cope with challenges that arise when "hostile external forces
are attempting to de-internationalise and de-functionalise" the city.
The
new organisation's headquarters will be located at a former police
station in the bustling Wan Chai district, and is due to open by the end
of this year or early 2026.
Authorities
in Hong Kong have been struggling to revive the financial centre after
sometimes violent protests in 2019 and COVID lockdowns hammered tourism
and retail industries.
Additional reporting by Edmond Ng, Anne Marie Roantree in Hong Kong, Joe Cash, Shi Bu and the Beijing newsroom; Writing by Farah Master; Editing by Tom Hogue and Michael Perry