Lawmakers Set to Refine Regulations for a Thriving Economic Future in the GBA

So attended the Third Session of the 14th National Committee of the Chinese People’s Political Consultative Conference, China’s top political advisory body, in Beijing from March 4 to 10, along with more than 2,000 other members of the committee. On the sidelines of the meeting, Beijing Review reporter Tao Zihui interviewed So about the integration of Hong Kong’s legal services into the region’s development. Edited excerpts of their conversation follow:

Beijing Review: China proposed the Belt and Road Initiative (BRI) in 2013 to boost connectivity along and beyond the ancient Silk Road routes. You have advocated for Hong Kong’s legal sector to engage in the initiative and the GBA’s development. How can Hong Kong more effectively capitalize on the strategic opportunities from national development?

Thomas So Shiu-tsung: I have always believed that Hong Kong’s role as a bridge in our country’s overall development remains steadfast, to facilitate connectivity both internally and externally. Although the essence of this bridge endures, the elements it carries have evolved over time. From carriages and people, to cars and trucks, and now to information, the bridge remains, but its traffic has transformed.

We must reflect and plan ahead. From the initial flow of physical capital, to the interconnection of information networks in the new century, and now to the bidirectional integration of resources under the BRI—where international capital once flowed into the mainland through Hong Kong, and now mainland enterprises use Hong Kong as a gateway to emerging markets, with a shift in focus from developed to developing countries. While preserving the bridge’s structural stability, we must continue to create irreplaceable connectivity value through rule convergence, talent development and service model innovation amid shifting national strategies.

As the integration of legal service resources within the GBA is advancing, what professional qualities should young Hong Kong lawyers possess to stay ahead?

In 2014, as vice president of the Law Society of Hong Kong, I led an initiative to enable Hong Kong lawyers to practice on the mainland through a special qualification mechanism. With the advancement of the GBA strategy, we successfully advocated for a policy allowing lawyers from Hong Kong and Macao SARs to provide legal services in the nine Guangdong cities in the GBA after passing a special exam and meeting certain criteria.

Since then, nearly 500 lawyers from Hong Kong and Macao have sat for the exam with outstanding results, expanding practice opportunities and fostering mutually beneficial cooperation between mainland and Hong Kong and Macao law firms. Mainland firms have enhanced their international capabilities by collaborating on foreign-related cases, while Hong Kong and Macao lawyers have learned from mainland firms’ innovative technology-driven operations and client management. This two-way exchange has effectively broken down traditional barriers in legal services, especially in business promotion and digital transformation, where mainland practices have provided valuable insights for Hong Kong lawyers.

Looking ahead, I believe that in 10-20 years, we may have a unified GBA lawyer team, enhancing regional legal services and building an internationally competitive system. Faced with industry competition, it’s crucial to accelerate legal service integration in the GBA and broaden our international perspective. Young Hong Kong lawyers should enhance their capabilities in three areas: mastering the legal systems of both the mainland and the SAR, as well as bilingual communication; capturing market dynamics and expanding resources in emerging markets; and embracing legal technology reforms and innovating law firm management and services with AI.

Hong Kong’s professional organizations are relatively slower to reform, so we must actively catch up and leverage technology for reform. Additionally, professional service organizations should collaborate, with lawyers, accountants, financial institutions and other foreign-related service teams working together to support enterprises going overseas.

The key lies in breaking through traditional paths through continuous reforms: on the one hand, leveraging technology to improve service efficiency and transforming tools like AI from auxiliary roles into competitiveness elements; on the other hand, closely aligning with national strategies and establishing specialized service capabilities tailored to the legal needs of BRI participants.

By aligning with our country’s overall development, we can upgrade our value and open up broader development spaces. The future is bright and promising.

How do you think the establishment of the headquarters of the International Organization for Mediation (IOMed) in Hong Kong will influence Hong Kong’s legal system and dispute resolution landscape?

Hong Kong has been diligently preparing for the establishment of the IOMed’s headquarters, slated for later this year. This groundbreaking intergovernmental body, dedicated to mediating international disputes, will be the first of its kind globally and the inaugural intergovernmental organization based in Hong Kong. This underscores the Central Government’s trust in the SAR’s legal system and solidifies its role as an international dispute resolution hub.

The IOMed aligns with China’s policy of promoting harmonious dispute resolution, echoing our country’s commitment to peaceful conflict management. With decades of experience in dispute resolution, I’ve witnessed Hong Kong’s prowess in cross-border litigation and international arbitration. However, these methods often lead to relationship strain. Mediation, instead, fosters consensus for long-term mutual benefit, resonating with the Chinese cultural value of harmony.

Mediation should be the first resort before arbitration. Now that Hong Kong is chosen to host the headquarters of the IOMed, societal sectors, especially business communities, must unite to build a mediation-centric early dispute resolution mechanism. Contracts of large enterprises and chambers of commerce should include mediation clauses. Hong Kong’s pre-litigation mediation success offers valuable lessons. Additionally, promoting the unification of mediator reservoirs and rules within the GBA and establishing an online mediation platform are needed.

What are the highlights and achievements of the online arbitration collaboration platform established by the eBRAM International Online Dispute Resolution Centre in July 2024 across the GBA in terms of resource integration, talent exchange and rule unification?

This demonstrates the progress in developing and integrating dispute resolution services through collaborative efforts among various arbitration institutions within the GBA. The platform has inked contracts and memorandums of understanding with several esteemed arbitration and mediation institutions across the nine cities in Guangdong, Hong Kong and Macao that make up the GBA, with a focus on aligning qualifications and rules.

Cooperation memorandums tailored to each city have been signed, beginning with easily implementable arbitration service collaborations aimed at serving parties and integrating resources. For instance, Foshan, known for its furniture and lighting industries, can offer expert support in related cases; Hong Kong, with its legal and technological prowess, can facilitate expert exchanges for joint case handling and service improvement.

Additionally, the platform fosters talent exchange, including personnel visits between the Foshan Arbitration Commission Secretariat and Hong Kong. Efforts are underway to reach a consensus on arbitration case handling rules and promote unification. Considering the differing arbitrator qualification systems in Hong Kong and the mainland, the potential for unification is being explored. Ultimately, a unified arbitration and mediation platform in the GBA will be established, achieving comprehensive integration and enhancing the region’s overall systems and collaborative efficiency in arbitration and mediation.