Speech by SJ at 2023 Hong Kong Summit on Commercial Dispute Resolution in China (English only) (with photo)

     Following is the speech by the Secretary for Justice, Mr Paul Lam, SC, at the 2023 Hong Kong Summit on Commercial Dispute Resolution in China today (October 14):
 
Mr Guo (Chairperson of Beijing Arbitration Commission/ Beijing International Arbitration Center, Mr Guo Wei), distinguished guests, ladies and gentlemen,
 
     Good afternoon. I am very honoured to be given the chance to speak today at the 2023 Hong Kong Summit on Commercial Dispute Resolution in China. I would like to begin by extending my heartfelt gratitude to the Beijing Arbitration Commission (BAC) for the successful organisation of this Summit.
 
     In today's event, distinguished speakers and experts of different fields have shared their views on the development of dispute resolution in China and conducted sector specific discussions, including energy, investment, finance, construction and intellectual property rights. It has provided an invaluable platform for legal practitioners of the Mainland and Hong Kong to engage in insightful discussions on the evolving landscape of commercial dispute resolution in our country.
 
The Belt and Road Initiative and the Rule of Law
 
     This year marks the 10th anniversary of the Belt and Road Initiative. The third Belt and Road Forum for International Cooperation will be held in Beijing next week with the theme "High-quality Belt and Road Cooperation: Together for Common Development and Prosperity". As mentioned in the white paper entitled "The Belt and Road Initiative: A Key Pillar of the Global Community of Shared Future" released by the State Council of People's Republic of China on October 10, which was last Tuesday, "The ultimate goal of the BRI (Belt and Road Initiative) is to help build a global community of shared future. As an important public good for improving global governance, the initiative provides a platform for turning the vision into reality."
 
     The rule of law is essential to development and prosperity. Target 3 in Goal 16 of the Sustainable Development Goals (SDGs) set by the United Nations in 2015 is to: "Promote the rule of law at the national and international levels and ensure access to justice for all." The United Nations General Assembly has recognised, in target 16.3 of the SDGs, that the rule of law is not only about criminal law and transitional justice, but also about mature rule-based commerce as a stabilising factor, and one which can mobilise resources for development, including due process and a strong judicial and legal infrastructure.
 
     In the context of BRI, President Xi Jinping stated in a letter to the China Forum on International Legal Cooperation in Guangzhou back in 2019 that promoting the joint construction of the Belt and Road requires the protection of the rule of law, and he expressed the hope that everyone will actively promote the development and improvement of relevant legal systems, so that the rule of law can better play in the process of jointly building the "Belt and Road" effect.
 
     The Summit today is most timely as resolving commercial disputes in a fair, efficient and peaceful manner plays an important part in maintaining and promoting the rule of law, in particular, in the context of BRI.
 
Hong Kong's unique role in the Belt and Road Initiative
 
     Hong Kong has always played a unique role in the BRI. At the eighth Belt and Road Summit held in Hong Kong last month, the Vice-Premier Ding Xuexiang specifically mentioned that Hong Kong has leveraged its own advantages, particularly in legal services, to actively participate in the joint construction of the Belt and Road and continues to strengthen co-operation with the Belt and Road countries in various fields. He reiterated that the Central People's Government supports Hong Kong to maintain our common law system and to consolidate its status as a centre for international legal and dispute resolution services in the Asia-Pacific region, thereby playing a more important role in jointly building the Belt and Road.
 
     I wish to refer to some statistics, facts and figures, which are, and should be indisputable, to explain why I am confident that Hong Kong shall remain and thrive as one of the top places for international commercial arbitrations and dispute resolutions.
 
     In 2022, there were a total of 515 new cases submitted to the Hong Kong International Arbitration Centre. Of these new cases, 344 were arbitrations, which is the highest number received in over a decade. It is worth mentioning that over 50 per cent of the arbitrations concerned contracts entered into after 2020. It is noteworthy that the Hong Kong National Security Law (NSL) was enacted on June 30, 2020. These statistics have demonstrated that Hong Kong continues to be an attractive place for commercial dispute resolution, particularly by arbitration, notwithstanding the enactment of the NSL.
 
     It is not difficult to understand why this is so if one considers some significant developments regarding arbitration in Hong Kong in recent years.
 
Hong Kong's recent development on arbitration
 
     Since the return of Hong Kong to our motherland, Hong Kong has signed nine arrangements on mutual legal assistance in civil and commercial matters with the Mainland, three of which are related to arbitration.
 
     One of these arrangements is the Interim Measures Arrangement (Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and of the Hong Kong Special Administrative Region) signed in April 2019. Following the implementation of the Interim Measures Arrangement in October 2019, Hong Kong has become the first and only common law jurisdiction outside the Mainland where, as a seat of arbitration, parties to arbitral proceedings administered by designated arbitral institutions would be able to apply to the Mainland courts for interim measures. These interim measures include preservation of assets and evidence, which are of great practical importance to maintain the status quo pending the final disposal of the arbitral proceedings.
 
     Currently, 100 applications have been processed, while 70 decisions were made by the Mainland courts involving over RMB25 billion worth of assets. Under these decisions, more than RMB15.7 billion worth of assets were preserved.
 
     On the other hand, in June 2022, the Arbitration and Legal Practitioners Legislation (Outcome Related Fee Structures for Arbitration (ORFSA)) (Amendment) Ordinance 2022 came into effect, which permits lawyers and clients to enter into outcome related fee structure agreements for arbitration. The new regime allows a broad range of fee options, including conditional fee agreements, damages-based agreements and hybrid damages-based agreements. The introduction of such new regime enables Hong Kong to keep up with the latest practice in international arbitration so as to maintain Hong Kong's competitiveness as a centre for international dispute resolution services. Along with the third party funding regime for arbitration, Hong Kong now provides multiple funding options which enable flexible fee arrangements in arbitrations. As of September 2023, 87 arbitration cases were conducted with third party funding and four was conducted with the newly introduced ORFSA regime.
 
     To maintain and promote Hong Kong's status as an international legal dispute resolution centre, it is necessary to make it convenient for people from overseas or from the Mainland to take part in arbitrations in Hong Kong in different capacities. The Pilot Scheme on Facilitation for Persons Participating in Arbitral Proceedings in Hong Kong launched in June 2020 allowed visa-free nationals who are arbitrators, lawyers, experts and parties to arbitration to come to Hong Kong to participate in arbitral proceedings without the need to obtain any employment visa. Since March 1 this year, the Pilot Scheme has been expanded to cover all visitors, including those who would require a visit visa or entry permit to enter Hong Kong and also residents of the Mainland, Macao and Taiwan.
 
     Lastly, it is crucial to remember that the courts in Hong Kong have always been very supportive of the use of arbitration; and hence adopted a very pro-arbitration approach. The Hong Kong judiciary respects parties' autonomy in their choice of dispute resolution mechanism and only intervenes in limited circumstances to ensure the propriety and fairness of the process.
 
     This pro-arbitration approach has been reaffirmed in a very important recent Hong Kong Court of Final Appeal's judgment in C v D decided on June 30, 2023. The contract provided that if the dispute could not be resolved amicably within 60 days of the request for negotiation, the dispute should be referred by either Party "for settlement exclusively and finally by arbitration in Hong Kong at the Hong Kong International Arbitration Centre (HKIAC) in accordance with the UNCITRAL (United Nations Commission on International Trade Law) Arbitration Rules" then in force. Invoking that clause, the respondent referred the dispute to arbitration at the HKIAC before a tribunal of three arbitrators. The appellant in that case objected to the arbitration going ahead on the ground that the pre-arbitration procedures had not been complied with, but the tribunal found that those procedures had been duly observed and went on to hold the appellant liable for breach of contract, reserving the question of damages for the next phase. The appellant then brought proceedings to set aside the tribunal's partial award, contending that the arbitrators were wrong to decide that the pre-arbitration requirements had been complied with. The issue was, therefore, whether the Court has power to review and set aside that decision. The answer would depend on the proper application of section 81 of the Arbitration Ordinance which incorporates Article 34 of the UNCITRAL Model Law.
 
     It was held that there is a presumption that the issue of non-compliance with a precondition to arbitration is a question of admissibility, rather than jurisdiction. In other words, absent contrary evidence, the issue should be decided by the arbitral tribunal, rather than by the court. Upon proper construction of the arbitration agreement in that case, the court held that both the main contractual dispute and the dispute as to the fulfillment of the pre-arbitration condition fell within the parties' contemplation and intended submission to arbitration. As a result, the court would not intervene in that case.

     Among the 120 jurisdictions with arbitration legislation based on the UNCITRAL Model Law, this is the first case decided by the final appellate court in a Model Law jurisdiction. This judgment reaffirms the pro-arbitration nature of Hong Kong’s arbitration regime by respecting party autonomy, and limiting court interference in arbitration proceedings, and satisfying the objective of arbitration as a "one stop shop" to achieve efficient dispute resolution.  

Conclusion
 
     Looking ahead, there is no doubt that the rule of law will play an indispensable role in BRI for the ultimate purpose of building a global community of shared future. And, in this respect, Hong Kong shall continue to capitalise on its unique status and distinctive advantages under the principle of "one country, two systems", and strengthen its position as a leading centre for international legal and dispute resolution services in the Asia-Pacific region.
 
     On this note, may I once again express my gratitude to BAC for holding this Summit. May I also thank all the distinguished speakers and all the participants for sharing your valuable insights and expertise. Thank you very much.

Photo  



Welcome home reception for Hong Kong, China delegation to 19th Asian Games Hangzhou held today (with photos)

     The Hong Kong Special Administrative Region (HKSAR) Government and the Sports Federation & Olympic Committee of Hong Kong, China (SF&OC) hosted a welcome home reception at Central Government Offices this afternoon (October 14) to congratulate home athletes of the Hong Kong, China Delegation on their triumphant return to the 19th Asian Games Hangzhou (Asian Games) and praise their performance in the Games, as well as expressing gratitude to the coaches and medical teams for their contributions.
      
     Speaking at the ceremony, the Chief Executive, Mr John Lee, said that the outstanding performance is the outcome of athletes' efforts, and at the same time, reflecting that the Government is on the right track in allocating resources for sports development. The Government's estimated expenditure on sports development in 2023-24 is around $7.4 billion, representing an increase of about 40 per cent as compared to five years ago and the focus on promotion is in five aspects, namely to promote sports in the community, support elite sports, promote Hong Kong as a centre for major international sports events, professionalism in the sports sector and development of sports as an industry.
      
     The Asian Games was held in Hangzhou between September 23 and October 8. The Hong Kong, China Delegation has sent a total of 680 athletes, whose remarkable achievements in winning a total of 53 medals, namely eight golds, 16 silvers and 29 bronzes, a record-breaking total attained by Hong Kong athletes in the Asian Games. Details of the medalists of the competition are set out in the Annex.
     ã€€
     Also attending the reception today were the President of the Sports Federation & Olympic Committee of Hong Kong, China SF&OC, Mr Timothy Fok; the Chief Secretary for Administration, Mr Chan Kwok-ki; the Acting Commissioner of the Office of the Commissioner of the Ministry of Foreign Affairs of the People's Republic of China in the HKSAR, Mr Li Yongsheng; the Secretary for Culture, Sports and Tourism, Mr Kevin Yeung; the Chef de Mission of the Hong Kong, China Delegation to the Asian Games, Mr Kenneth Fok; the Permanent Secretary for Culture, Sports and Tourism, Mr Joe Wong; the Under Secretary for Culture, Sports and Tourism, Mr Raistlin Lau; and the Director of Leisure and Cultural Services, Mr Vincent Liu. 

Photo  Photo  Photo  Photo  Photo  Photo  Photo  



Hong Kong Customs seizes suspected cocaine worth about $2.2 million at airport (with photo)

     Hong Kong Customs yesterday (October 13) detected a passenger drug trafficking case at Hong Kong International Airport and seized about two kilograms of suspected cocaine with an estimated market value of about $2.2 million. One woman was arrested.

     A 55-year-old female passenger arrived in Hong Kong from Windhoek, Namibia, via Addis Ababa of Ethiopia and Dubai of the United Arab Emirates yesterday. During customs clearance, Customs officers found the batch of suspected cocaine concealed in the false compartments of her carry-on handbag. She was subsequently arrested.

     The arrested woman has been charged with one count of trafficking in a dangerous drug. She will appear at the West Kowloon Magistrates' Courts on October 16.

     Following the resumption of normal travel and exchanges with the Mainland and other parts of the world, the number of visitors to Hong Kong has also been increasing steadily. Customs will continue to apply a risk assessment approach and focus on selecting passengers from high-risk regions for clearance to combat transnational drug trafficking activities.

     Under the Dangerous Drugs Ordinance, trafficking in a dangerous drug is a serious offence. The maximum penalty upon conviction is a fine of $5 million and life imprisonment.

     Members of the public may report any suspected drug trafficking activities to Customs' 24-hour hotline 2545 6182 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Photo  



Dutch entrepreneurs learn about opportunities to collaborate with Hong Kong in achieving climate goals and advancing ESG practices (with photos)

     Dutch entrepreneurs attending a seminar in Wassenaar, the Netherlands, on October 12 (Netherlands time) knew about the abundant business opportunities available to them to partner with Hong Kong as it strives to reach carbon neutrality before 2050 and advance Environmental, Social and Governance (ESG) practices.

     The seminar and dinner, titled "Sustainability and ESG in and with Hong Kong – How to make it work!", was a biannual event for the Dutch business community organised by the Netherlands Hong Kong Business Association and the Netherlands China Business Council, with the support of the Hong Kong Economic and Trade Office in Brussels (HKETO, Brussels) and Invest Hong Kong.

     The seminar provided an opportunity for Dutch companies to explore potential partnerships with Hong Kong in the context of global climate goals and the implementation of ESG practices. Business leaders from Hong Kong, other parts of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the Netherlands shared their experience and expertise during panel sessions on "Sharing best practices in ESG and sustainability" and "Green investing is making money while saving the planet". 

     In her welcoming remarks, the Deputy Representative of the HKETO, Brussels, Miss Fiona Li outlined Hong Kong's plan and challenges in promoting decarbonisation and sustainable development, and how Hong Kong can promote the global agenda.

     The Special Representative for Hong Kong Economic and Trade Affairs to the European Union, Miss Shirley Yung, said in her speech that Hong Kong can play to its strengths and make a significant contribution to the global fight against climate change in areas of green finance and green tech. 

     "As one of the world's biggest international financial centres, Hong Kong is poised to become a premier centre for green and sustainable finance that serves the green transformation in Mainland China, the region and the rest of the world," she said.

     She noted that more than 100 green tech companies and start-ups operate at Cyberport and Science Park, and that the city combines its strengths with those of its neighbours.  

     "For example, the Global Innovation Index, which ranks countries and economies based on their innovative capacity each year, has just ranked the Shenzhen-Hong Kong-Guangzhou science and technology cluster second in the world," she said.

     Miss Yung encouraged Dutch businesses to make use of Hong Kong's excellent services and platform to expand in the region, the GBA, Mainland China and beyond. 

Photo  Photo  



Speech by SITI at Opening Ceremony of 2023 Future Science Prize Week (English only) (with photo)

     â€‹Following is the speech by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the Opening Ceremony of 2023 Future Science Prize Week today (October 14):

Dennis (Co-Chair of the Program Committee of 2023 Future Science Prize Week, Professor Dennis Lo), Professor Yang Xueming (Co-Chair of the Program Committee of 2023 Future Science Prize Week), Mr Richard Liu (Rotating Chairman of Council of the Future Forum 2023), Professor Gregory Winter (2018 Nobel Prize Laureate in Chemistry), Professor Shankar Balasubramanian (2022 Breakthrough Prize Laureate in Life Science), distinguished guests, ladies and gentlemen,
 
     Good morning. I am delighted to be here today for the opening ceremony of the Future Science Prize Week 2023. First of all, on behalf of the Hong Kong SAR Government, I would like to extend a warm welcome to all the scientists and speakers coming to Hong Kong.

     When I heard last year that the Future Science Prize Week including the award ceremony would be moving to Hong Kong for the very first time, I could not hide my excitement and immediately expressed my strong support. Two months ago, I attended the press conference of the Future Science Prize 2023 and witnessed the heartfelt sharing from the winners. With the official launch of the Future Science Prize Week today, I finally have the opportunity to meet the winners and congratulate them in person!

     As the Chief Executive has just said, the location of today's opening ceremony at the Hong Kong Science Park, is symbolic and meaningful. In particular, the landmark auditorium where we gather here is named after Professor Charles Kao, 高錕教授, the "Father of Fiber Optic Communications", with whom we are all very familiar. He won the Nobel Prize in Physics in 2009 and had spent much of his life in Hong Kong, contributing to science and education, as well as nurturing Hong Kong's next generation. We are very fortunate to have so many great world-class scientists in our city, which shows that Hong Kong has an excellent soil for nurturing I&T talent. I am of full confidence that the I&T ecosystem in Hong Kong will continue to be increasingly vibrant.

     With the staunch support from our motherland, Hong Kong is fully committed to the I&T development and is working at full steam to become an international innovation and technology centre. We all continue to give full play to our important role as a bridge connecting the Mainland and rest of the world, and leverage Hong Kong's advantages as an international city to foster global I&T collaboration by supporting more world-class academic exchanges in Hong Kong, just like today. I am confident that the Future Science Prize Week programmes will help further enhance the awareness and interest in science and technology among the younger generation, and create a stronger scientific atmosphere in the community.

     Today's opening ceremony marks the official start of the four-day Future Science Prize Week programmes, kicked off by the Life Science session, where heavyweight scientists will soon lead us on an exploration of mysteries of life and health. Please stay tuned for more exciting programmes in the coming days and join us on this amazing I&T journey.

     Science and technology is advancing by leaps and bounds, and that is our mission to popularise science for the future and to build a better and brighter future for our next generation. In the face of various challenges around the world, science and technology will continue to unlock more for the benefit of humanity.

     Before I close, I would like to thank Dennis and the Organising Committee for all their excellent efforts to make this possible. I am also most grateful to have the top-tier and renowned speakers for their generous sharing of knowledge and insight. May I wish you all a fruitful and enjoyable experience at the Future Science Prize Week in Hong Kong. Thank you very much!

Photo