'Common law system gives HK edge in handling disputes'

An experienced lawyer has highlighted Hong Kong's competitive edge in providing legal and mediation assistance to mainland firms engaged in large-scale Belt and Road initiatives. The importance of legal backup is emphasized, as force majeure clauses in contracts could become relevant in Middle East-based projects due to ongoing conflicts.

Force majeure refers to unforeseen events like wars, crimes, or natural disasters that hinder a party's ability to meet contract obligations. As mainland enterprises expand their presence in the Belt and Road region, they may encounter uncertainties, and contracts need to be carefully reviewed. David Blumental, an acquisitions and mergers expert at Simmons & Simmons, has observed that force majeure clauses are rare in his experience, but the changing global landscape has led to increased usage.

Hong Kong's common law system provides a distinct advantage, particularly as the surrounding Asia region predominantly follows civil law. The Hong Kong International Arbitration Centre, with its well-established rules and extensive experience in arbitration, further strengthens Hong Kong's position as a competitive location for such projects.

Blumental encourages Hong Kong's professional industries to capitalize on Belt and Road opportunities by leveraging their global expertise and partnering with mainland firms that possess strong engineering and construction capabilities.