Some interesting comments on moves by companies to switch from Hong Kong as the governing law and place of arbitration in contracts in the wake of China's tightening grip on the Territory.
In contracts involving foreign companies and counterparts in South East Asia, Hong Kong and Singapore are often viewed as preferred independent arbitration locations. Any shift away from Hong Kong may be a boon for Singapore.
When acting for foreign companies, the method of dispute resolution is often crucial. In some jurisdictions, foreign arbitral awards may be enforceable upon registration whereas foreign court judgments can only be used as evidence in local civil proceedings.
It is understandable that companies may be nervous using Hong Kong as a place of arbitration when the long term implications of the changes in Hong Kong remain unknown.
Companies consider writing Hong Kong out of legal contracts
February 2021
© PELEN 2021
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