TITLE:
Legal Framework for Resolving Commercial Disputes in CPEC: A Comparative Analysis
AUTHORS:
Guoqiang Luo, Dawood Ahmad
KEYWORDS:
Legal Framework, China-Pakistan Economic Corridor, Commercial Disputes, Conflict Resolution
JOURNAL NAME:
Beijing Law Review,
Vol.17 No.1,
March
27,
2026
ABSTRACT: This study examines the mechanisms for resolving commercial disputes arising under the China-Pakistan Economic Corridor (CPEC), emphasizing that Pakistan’s legal system is the primary framework for addressing such disputes. It aims to identify the key deficiencies in Pakistan’s dispute resolution mechanisms by comparing them with China’s system. The research adopts a comparative legal analysis approach, reviewing statutory frameworks, institutional mechanisms, and judicial practices in both countries. It assesses primary legal documents, bilateral agreements, and case law to evaluate the efficiency and adaptability of each system in handling CPEC-related commercial conflicts. The study finds that Pakistan’s legal system remains constrained by outdated procedures, weak enforcement, and limited institutional specialization, while China’s International Commercial Court (CICC) offers a modern, integrated mechanism for meeting litigation, mediation, and arbitration needs. These differences impact investor confidence, transparency, and long-term project sustainability under CPEC. The study is limited to Pakistan and China, focusing primarily on legal and institutional mechanisms rather than economic or political dimensions. Further research could expand to other Belt and Road Initiative (BRI) economies for comparative assessment. The findings emphasize the need for Pakistan to harmonize its commercial dispute resolution laws, establish specialized courts, and strengthen judicial cooperation with China to ensure a predictable, transparent, and investor-friendly environment. This paper contributes to the limited literature on comparative legal frameworks within CPEC by providing an integrated assessment of dispute resolution mechanisms in both China and Pakistan. It proposes a multifaceted model combining litigation, arbitration, and mediation to enhance investor trust in the long-term viability of CPEC.