Commentary: Hong Kong’s Next Pivot From Legal Service Hub to Global Rule-Maker

1. In China’s 14th Five-Year Plan, Hong Kong was tasked with establishing itself as an Asia-Pacific center for international legal and dispute resolution. The recommendations for the 15th Five-Year Plan now focus on "deepening" this mandate, signifying a transition from building legal infrastructure to optimizing and expanding its scope. The underlying goal is for Hong Kong to move from passively adhering to international rules, to actively shaping China’s role in global legal governance, making the rule of law central to Hong Kong's future competitiveness [para. 1].

2. This key shift from establishing foundational legal capacity to substantive functional development means that Hong Kong has already assembled leading arbitration and mediation institutions. The Chinese central government's priority now is not about whether Hong Kong can serve as a legal hub but about how Hong Kong can leverage its influence internationally [para. 2].

3. As a result, Hong Kong faces increased expectations for both capacity and responsibility. It is anticipated to protect Chinese enterprises operating globally and take an active role in setting institutional rules in international legal governance, thus transforming from a regional enabler to a crucial global rule-maker [para. 3].

4. For such modernization to take root, measuring legal competitiveness must transcend institutional quantity or case loads, and instead focus on a richer, more integrated set of capabilities [para. 4].

5. The first element is institutional synergy. Recent advances like cross-boundary recognition of civil and commercial judgments are significant, but the next step involves establishing routine frameworks for complex matters, such as bankruptcy restructuring, cross-border M&A, intellectual property, and digital assets, with the aim of setting benchmarks for global legal cooperation [para. 5].

6. The second element is the acceleration of legal technology. Hong Kong is well-placed to lead innovations such as AI legal tools, blockchain evidence, and online dispute resolution, establishing a first-mover advantage in digital governance and international data compliance standards [para. 6].

7. The third core requirement is talent development. Nurturing multi-skilled legal professionals—with expertise in both common and civil law, strong bilingual ability, and a global commercial perspective—is identified as fundamental [para. 7].

8. As the global legal landscape becomes more fragmented, Hong Kong is redefining its structural role, transforming from an executor of international legal processes to a coordinating node that helps shape global standards [para. 8].

9. Unique under the “One Country, Two Systems” model, Hong Kong is China’s only common law jurisdiction and the only one globally offering bilingual (English-Chinese) operations. This confers a critical bridging function, especially as economic power shifts towards rule-centric global governance. Hong Kong’s value lies in its compatibility with Chinese law, common law, and worldwide legal norms [para. 9].

10. The trust earned from an independent judiciary, transparent courts, and a robust common law tradition underpins Hong Kong’s legal status. Its arbitral awards are enforceable in over 170 jurisdictions. Increasingly, Hong Kong is not just adapting to, but helping to draft international rules by participating in global organizations and treaty negotiations, providing a unique platform for translating Chinese legal principles into global practice [para. 10].

11. In the future, international legal competition will depend on institutional compatibility and predictability. Hong Kong must move toward a rule-driven model, setting standards in new areas like digital assets and green finance, and shift from only providing services to exporting comprehensive legal frameworks, leveraging platforms such as the Belt and Road Initiative [para. 11].

12. Ultimately, Hong Kong’s sustained advantage will be based on the trust generated by institutional stability and judicial independence. Deepening its legal hub status thus involves supporting China’s broader opening while also promoting Chinese legal tenets globally—demonstrating that the rule of law underpins sustainable global competition and trust [para. 12].

13. Author information and disclaimer: The article was contributed by Liu Yang, a partner at Haiwen & Partners and Chief Representative at the International Chamber of Shipping China Liaison Office. The views are the author’s and do not represent those of Caixin [para. 13][para. 14].