Fair use of law urged as foreign cases rise 50%

Chinese courts have been urged to improve their adjudication over foreign-related cases by emphasizing fairness, impartiality, accessibility, efficiency and a people-centered approach, in a bid to strengthen judicial support for China’s high-level opening-up.

The directive was issued by the Supreme People’s Court, the country’s top court, at a meeting earlier this week. It coincided with the release of data showing that Chinese courts handled about 40,000 first-instance civil and commercial cases involving foreign elements in 2025, nearly 50 percent more than the previous year.

As the number of foreign-related cases rises and legal demands grow more complex, the top court called on judges nationwide to uphold the principle of equal protection for both domestic and foreign litigants and to actively integrate mediation into litigation.

“Courts across the country should resolve disputes involving intellectual property, foreign trade and investment, cross-border finance, as well as maritime and commercial matters in a fair and efficient manner, and work to make China a preferred venue for international IP, commercial and maritime dispute resolution,” it said.

The SPC also urged deeper theoretical and practical exchanges with judicial institutions of countries participating in the Belt and Road Initiative, highlighting the need to fulfill treaty obligations, adhere to the principles of equality and reciprocity, and lawfully recognize and enforce foreign civil and commercial judgments and arbitral awards.

“Providing lawful support for foreign judicial assistance requests reflects our confidence in the rule of law,” it said.

The top court further emphasized the need to align more closely with high-standard international economic and trade rules as part of institutional opening-up.

It also called for stronger legal research on new issues arising from island-wide special customs operations at the Hainan Free Trade Port, and urged judges to better integrate litigation with mediation and arbitration.

Data released on Monday showed that IP contract disputes rose by 30.4 percent in 2025, while cases involving IP ownership and infringement increased by 3.7 percent. “These figures demonstrate China’s strong innovation momentum and reflect growing demand for high-quality judicial services,” the court said.

The SPC urged courts nationwide to adopt tougher measures, including the use of punitive damages, to clamp down on IP violations. The court also called for judicial research in emerging fields such as the digital economy and artificial intelligence to better address new legal challenges.

In addition, Chinese courts were instructed to intensify efforts against acts that disrupt market order and infringe on trade secrets, with the aim of ensuring fair competition and promoting high-quality economic development.

Criminal cases involving disruption of the socialist market economy order increased by 2.2 percent in 2025, while civil disputes related to unfair competition, including trade secret infringements and bid-rigging, rose by 10.6 percent, underscoring ongoing challenges in maintaining a fair and competitive market environment. MDT/China Daily