Published: 19:53, June 5, 2025
Hong Kong is emerging as a global mediation hub
By Oriol Caudevilla

In the same way that Hong Kong’s economy has been labeled by some media outlets as “over” when it is actually far from that but just transforming and adapting to the current times, Hong Kong’s legal system has also been frequently criticized, very unfairly in my opinion. But with last Friday’s official launch of the International Organization for Mediation (IOMed), Hong Kong is set to gain a new identity as an international hub for mediation. Thanks to the “one country, two systems” principle and the city’s robust legal system, Hong Kong has been chosen as the location for the headquarters of the IOMed. This marks the first time an international intergovernmental organization has been headquartered in Hong Kong.

Hong Kong is very strong when it comes to alternative dispute resolution. Over the years, the Department of Justice of the Hong Kong Special Administrative Region government has made every effort to establish the city as a leading center for international legal and dispute resolution services in the Asia-Pacific region, and many well-respected international institutions have made Hong Kong their most significant operation base outside their home jurisdictions, fostering Hong Kong’s development as one of the leading international legal and dispute resolution services hub in the Asia-Pacific region and beyond.

In his 2024 Policy Address, Chief Executive John Lee Ka-chiu declared the SAR government’s goal of  enhancing the city’s status as a regional center for international legal and dispute resolution services.

READ MORE: IOMed set to peacefully resolve international disputes

To this end, he announced a series of measures such as stepping up promotion of mediation services, developing a sports dispute resolution system, and commencing the training of international legal talent; the Hong Kong International Legal Talents Training Academy will be officially launched this year, familiarizing legal talent with international law, common law, civil law, national legal systems, and other legal aspects.

If Hong Kong can tap into new opportunities as a regional center for international legal and dispute resolution services, it is precisely because of its robust legal system.

The SAR’s legal system is underpinned by the principles of the rule of law and judicial independence. The constitutional framework for the legal system is provided by the Basic Law enacted by the National People’s Congress (NPC) of the People’s Republic of China in accordance with Article 31 of the country’s Constitution. The Constitution and the Basic Law together form the constitutional basis of the SAR. The SAR’s legal system is based on the common law, supplemented by statutes.

When it comes to the Judiciary, as prescribed in the Basic Law, the SAR has been authorized by the NPC to exercise independent judicial power, including the power of final adjudication. It has also been stated in express terms that the courts of the HKSAR shall exercise judicial power independently, free from any interference. Members of the Judiciary shall be immune from legal action in the performance of their judicial functions.

Hong Kong’s robust rule of law and sound legal system are widely recognized in the international community. The city was ranked 23rd out of 142 jurisdictions surveyed in the 2024 World Justice Project Rule of Law Index — the same position it held in 2023. In the East Asia and Pacific region, Hong Kong was ranked sixth out of the 15 jurisdictions surveyed (also the same position it held in 2023). It is worth noting that Hong Kong was ranked higher than many Western countries, including the United States (26th). Within the individual performance categories, Hong Kong did even better. While it was ranked 21st for “criminal justice”, it came in ninth for “order and security”, and sixth for “criminal investigation system”. Also, Hong Kong was ranked 10th for “absence of corruption”. The World Justice Project — which describes itself as an “independent, multidisciplinary organization working to create knowledge, build awareness, and stimulate action to advance the rule of law worldwide” — publishes its Rule of Law Index annually, and is the world’s leading source for original, independent data on the rule of law.

READ MORE: Promoting peaceful resolution of disputes through IOMed

To sum up, Hong Kong’s legal system has proved to be a huge success, given that it has allowed Hong Kong to navigate not only through the handover but also through difficult times. The signatories’ decision to establish the IOMed’s headquarters in Hong Kong is further confirmation of the city’s sound legal system and robust rule of law.

 

The author is a fintech adviser, researcher, and former business analyst for a Hong Kong listed company.

 

The views do not necessarily reflect those of China Daily.