Streamlined paper trail shows city's firm resolve for global integration

Editor's note:

Shanghai authorities have officially launched the nation's first foreign-related judicial documentary series, "Foreigners Tell Stories: A Rule-of-Law Business Environment." This highly anticipated sequel builds on the success of its first season, which garnered worldwide attention. The second season delves deeper into Shanghai's ambitious "Five Centers" initiative.

Georg Boehm, Chief Operating Officer of Troester Machinery (Shanghai) and a CEIBS Global EMBA 2019 alumnus, recently shared his experience on doing business in Shanghai, at a recent gathering of the China Europe International Business School (CEIBS) themed on German enterprises in Shanghai.

At the forum, Boehm invited Joerg Gaberl, general manager of GIB, a German firm with business deals with some Chinese enterprises, to talk about his litigation experience. Not long ago GIB was involved in a lawsuit at a local court in Shanghai.

Gaberl revealed that during the litigation process, GIB needed to supply to local court in Xuhui a total of five documents and an affidavit. Thanks to the adoption of the Convention Abolishing the Requirement of Legalization for Foreign Public Documents at the court, all relevant procedures were gone through within 15 working days. "The efficiency of the judiciary process is tangible, pointing to the superior business environment in the city of Shanghai," he said.

According to Song Sijie, a judge at a Xuhui District People's Court's commercial court, in March 2023 China formally adopted the Convention Abolishing the Requirement of Legalization for Foreign Public Documents, and the convention went into effect on November 2023.

Prior to this, legal documents concerning foreign countries would usually require a double-validation process that involved embassies or consulates of both the country of issuance, and the country where the documents would be accepted. The streamlined process in the wake of the adoption of the convention significantly reduced the time and costs in international circulation of the legal documents.

Significant savings have been achieved in this particular case since Germany is also a signatory to the convention. In light of the convention, the court examined meticulously the five documents by following due process of the law, leading to significant reduction in the time for trial. Earlier, settling similar disputes could take up to two or three months due to the time needed for collection of evidence overseas. With the time now drastically reduced, the parties concerned could look forward to an early verdict in light of justice.

Boehm's China experience dated back to 2005. Whether through this litigation process as narrated by Gaberl, or his own experience of conducting a business in China, Boehm feels strongly the resolve of the city, as well as China in general, to integrate with the rest of the world.

"I hope that more foreign enterprises would flock to this fertile land of Shanghai to start a business, as part of common effort to build happiness!" said Boehm.