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Multinationals turn away from Hong Kong for dispute resolution

Concerns over the rule of law are threatening Hong Kong's ambitions to become a hub for corporate arbitration, according to lawyers, stoking the appeal of regional rival Singapore for many multinationals.

The Chinese city still handles hundreds of arbitration cases each year. However, companies drafting new contracts are increasingly choosing places other than Hong Kong as the location for arbitration, a dozen lawyers and corporate advisers in Hong Kong, Singapore and London told Nikkei Asia.

Cross-border commercial contracts must specify a location for handling arbitration cases should they arise. Judicial independence and whether arbitral awards are readily enforceable are key factors in making that selection.

source: Nikkei Asia #Jun08

https://asia.nikkei.com/Spotlight/Hong-Kong-security-law/Multinationals-turn-away-from-Hong-Kong-for-dispute-resolution

#RuleOfLaw #HongKong #Arbitration #Dispute #Singapore #London