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Court judgments offer stability to maritime sector

By YUAN SHENGGAO | China Daily | Updated: 2026-11-02 00:00
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A new-type floating production, storage and off-loading vessel is under final assembly in Nantong, Jiangsu province. YU JINGMIN/FOR CHINA DAILY

The Nanjing Maritime Court is bolstering Jiangsu province's high-level opening-up by providing top-tier maritime judicial services.

Leveraging rule of law to optimize the business environment, the court is bridging domestic and foreign legal systems while adopting high-standard international trade rules. This ensures the stability and predictability of maritime adjudication, creating a favorable environment for business growth.

Systemic innovation

The court's efforts yielded results in the Supreme People's Court's 2025 typical maritime adjudication cases. Notably, its handling of a case involving the recognition and enforcement of a Hong Kong arbitral award provided a clear answer.

A dispute over final payment arose between a Philippine shipping company and a Chinese mainland shipbuilder regarding two near-complete barges. The Philippine company won a Hong Kong arbitration award for delivery and delay compensation. However, enforcing the award on the Chinese mainland faced a hurdle when the builder claimed bankruptcy liquidation to suspend the process. In a decisive move, the Nanjing Maritime Court rejected this argument, clarifying that recognizing a Hong Kong award is a "creditor confirmation" process, not a direct asset seizure, and thus should not be halted by bankruptcy claims. The ruling cleared the way for enforcement of the award. Ultimately, the award was recognized on the mainland, and the ships were handed over, concluding the dispute.

This case highlights the Nanjing Maritime Court's rigorous application of the cross-boundary arrangement between the mainland and Hong Kong. By fostering a supportive environment, the court continues to strengthen its role as a key venue for international maritime dispute resolution.

China's expanding global engagement is driving a surge in international maritime trade. This has raised the bar for dispute resolution, with parties now seeking faster, higher-quality and more streamlined legal services.

To meet these evolving demands, the Nanjing Maritime Court has refined its mechanism for handling foreign-related cases. The court issued a guideline on building a preferred destination for international maritime dispute resolution, proposing 10 measures to offer a "Jiangsu solution" to international maritime dispute resolution.

Additionally, the court has updated rules on serving judicial documents and ascertaining foreign laws. It has introduced bilingual litigation guides, simplified procedures for verifying extraterritorial official documents, and created fast-track channels for vessel seizures and releases. These measures aim to provide efficient, transparent procedures and fair, reasonable outcomes.

As well, the Nanjing Maritime Court has improved its diversified mechanisms for resolving international maritime disputes. It has established maritime circuit tribunals at the Jiangsu (Nanjing) Foreign-related Legal Service Center and the Suzhou Free Trade Zone Legal Service Center, participating in the construction of pilot zones for foreign-related legal services.

According to the court, 80 percent of its foreign-related maritime cases are currently resolved through mediation, achieving "case closure and dispute resolution". This creates new opportunities for applying the maritime Fengqiao Experience, a community-level social governance model that originated in Fengqiao, a township in East China's Zhejiang province, in the 1960s.

Professional safeguarding

In line with the Jiangsu provincial government's deployment requirements for the "one center, one base and one hub" initiative — which refers to the building of a globally influential industrial science and technology innovation center, an internationally competitive advanced manufacturing base and a two-way opening-up hub with global reach — the Nanjing Maritime Court has leveraged its maritime judicial functions to safeguard the stability of these industry chains through high-efficiency judicial services.

In recent years, focusing on the advancement of the offshore engineering equipment and high-tech ship cluster jointly developed by Nantong, Taizhou and Yangzhou, the court has adjudicated over 200 maritime cases covering the entire industry chain, including ship design, construction and insurance.

The court has adopted innovative measures such as "sealing without halting work" and "debt guarantees plus direct rent payment". These approaches not only protect creditors' rights but also prevent delays in the shipbuilding schedule. Consequently, the court has aided the completion and delivery of two anchor-handling tug supply vessels worth over 100 million yuan ($15 million) while under seizure, helping the shipbuilder emerge from its predicament and resume normal operations.

Aligning with Jiangsu's broader development strategy, the Nanjing Maritime Court issued several measures for more robust safeguards to build the province into a maritime powerhouse, introducing practical steps focusing on maritime technological innovation and the growth of new shipping formats.

To support emerging models like "cross-border e-commerce plus overseas warehouses", the court has summarized rules regarding common disputes over warehouse deliveries, port pickups and last-mile distribution. This guides enterprises in standardizing contracts, handover procedures and documentation, helping them reduce cross-border performance risks.

Addressing common disputes over cargo damage, involving strategic supplies like grain, ore and crude oil, the court has fulfilled its maritime adjudication functions. In over 20 cases, it issued maritime injunctions to order the release of detained goods, ensuring the safe and smooth operation of port and shipping channels.

Focusing on enterprises "going global", the Nanjing Maritime Court extends its services beyond the courtroom. It visits industry associations to propose solutions for high overseas litigation costs and long arbitration periods. The court compiled the guidelines on preventing legal risks in the maritime sector to reassure Jiangsu shipbuilders. Furthermore, by adjudicating marine insurance and finance cases, it supports domestic insurers in recovering claims from domestic and foreign shipowners and encourages the financial sector to empower high-quality marine economic development.

Pursuing excellence

The Nanjing Maritime Court is enhancing its global influence by prioritizing litigant needs and landmark cases. In a landmark ruling, the court supported a Chinese firm's tort claim under China's Anti-Foreign Sanctions Law against a European buyer, securing over 84 million yuan and offering a clear judicial guide against "long-arm jurisdiction." It was named a 2025 Top 10 Case.

To provide forward-looking guidance, the court issued measures for the rapid judicial response to improper foreign sanctions. Since 2025, it has handled 1,411 foreign-related cases — an average annual increase of 60.9 percent — spanning 98 countries and regions. Notably, in 13 cases with no link to China, foreign parties voluntarily chose the court.

The court's professionalism was highlighted in a collision case in which, by applying the 1972 Convention on the International Regulations for Preventing Collisions at Sea, the judge determined liability based on navigation trajectories, with both parties accepting the judgment without appeal.

"Maritime trials are characterized by their international, professional and technical nature," said Li Yuming, head of the Nanjing Maritime Court.

"Judges must adhere to international conventions and respect international practices. We must firmly establish modern maritime trial concepts, deeply integrate shipping practices, and cultivate the mindset for adjudicating maritime commercial cases. Through every single case, we aim to tell the story of China's maritime justice, amplify its legal voice, and foster a world-class business environment that is internationalized, convenient and governed by the rule of law," Li said.

The Nanjing Maritime Court judges conduct a follow-up visit to a high-tech vessel manufacturer. YU JINGMIN/FOR CHINA DAILY

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