Inaugural Issue January 2021 ASIA-PACIFIC INTEREST GROUP NEWSLETTER Note from the Co-Chairs INSIDE THIS ISSUE We are delighted to introduce to members of the ASIL Asia-Pacific Interest Group Feature: Expert Perspectives and beyond, the inaugural ASIL Asia-Pacific Interest Group Newsletter. The year on RCEP 2020 will long be remembered for the coronavirus pandemic, but 2020 was also a 2 year for a number of important developments in international law in the Asia-Pacific region. Along these lines, this newsletter spotlights some of these developments Can Hong Kong Preserve its over the past year. By way of background, the central idea behind the newsletter ini- Role as a Hub for Resolution of tiative is the recognition that far from being marginal to developments in interna- China-related tional law, Asia has moved to the center of both public and private international law. International Arbitration? Whether major trade pacts like the 2020 Regional Comprehensive Economic 6 Partnership or multilateral dispute resolution agreements as in the 2018 United Nations Convention on International Settlement Agreements Resulting from Regional Updates Mediation (the “Singapore Medication Convention”), the Asian region has been set- 9 ting the standard for creating legal frameworks to promote multilateralism, eco- nomic growth, and prosperity. At the same time, the Asian region has born legal conflicts and controversies that have attracted the attention of the world over, including maritime and border disputes such as the 2013 South China Sea Asia-Pacific Interest Group Arbitration and the India-Pakistan conflict in Kashmir; war in Afghanistan; and human rights concerns such as the Rohingya refugee crisis and the treatment of CO-CHAIRS Uyghurs in Xinjiang, to name a few examples. It is difficult to keep up with the pace Matthew S. Erie and complexity of events. While this newsletter does not attempt to be comprehen- (University of Oxford) & sive, it does flag key developments and trends. The newsletter not only includes Weixia Gu news updates but also expert analysis on region-wide developments as well as hot (University of Hong Kong) button legal issues. We are privileged to have Ms. Chiann Bao, a leading expert in EDITOR arbitration in Asia, to serve as the newsletter’s editor. Ms. Bao has been assisted by Chiann Bao a team of junior law-trained practitioners and scholars from a number of Asian juris- (Arbitration Chambers) dictions who have conducted research for this newsletter. We are grateful to Ms. Bao and her editorial team. We welcome any feedback from readers in terms of scope RESEARCH ASSISTANTS and content for future newsletters. Aditya Tumakaka, Mehreen Naushad, Nursultan Umurgazin, Matthew S. Erie, University of Oxford Charles Mak, & Yuan Fang Weixia Gu, University of Hong Kong Faculty of Law ASSISTANT TO THE EDITOR Vikki Hui Note from the Editor Views contained in this publica- I am pleased to share with you the inaugural issue of the ASIL Asia-Pacific Interest tion are those of the authors in Group Newsletter. At a time when we have become more siloed than ever as a result their personal capacity. The of the pandemic and also as a result of geopolitical trends, it is imperative that we American Society of International remain vigilant in sharing information and establishing forums for healthy discussion Law and this Interest Group do and debate. The Asia-Pacific region has seen great activity in international law circles not generally take positions on in the past year and this newsletter seeks to cover a few of the hottest and most substantive issues, including those addressed in this periodical. important topics of the year. —continued on page 2 Asia-Pacific Interest Group Newsletter Inaugural Issue - January 2021 Feature: Expert Perspectives on RCEP by Chié NAKAHARA, Partner, Nishimura & Asahi (Japan) What are your perceptions as to what RCEP is, and its implications? On November 15, 2020, the Regional Comprehensive Economic Partnership (“RCEP”), a free trade agreement ini- CAO: I see RCEP as signaling a coming of age of the Asia- tiated in 2013, was signed – the first-ever virtual signing of Pacific region and its various economies. The agreement’s an agreement that Association of Southeast Asian Nations signature was achieved upon the tremendous growth and (“ASEAN”) has undertaken. RCEP involves the 10 ASEAN increased interconnection of the region’s economies over members and 5 other countries, namely, China, Japan, the past few decades. Looking forward, in signing RCEP, I South Korea, Australia, and New Zealand. This massive think all the signatory countries have shown a strong indica- development is intended to broaden and deepen ASEAN’s tion of belief as to the further growth potential of the entire engagement with RCEP-participating countries, which region. Now that RCEP provides a clear legal framework for account for approximately 30% of the global GDP and 30% further promoting economic exchanges in the region, it may of the world’s population. RCEP is well-positioned to be a be that the Asia-Pacific may gradually become where the significant boost to economic growth in the region, post- largest deals in the future will occur and where the largest COVID-19 pandemic. Hence, this Feature section, which quantity of deals in the future will be based. showcases interviews with leading experts and industry insiders, could not be more timely. The interviewees KOH: The signing of RCEP is a bright spark in the midst of include, in alphabetical order: Mr. Lijun CAO, an expert in the COVID-19 pandemic, signalling the positive collabora- international arbitration, based in China and a partner at tive efforts of the contracting parties in the future forward, Zhong Lun Law Firm; Dr. Deborah ELMS, the founder and which is a major victory for multilateralism. Considering the Executive Director of the Asian Trade Centre; Ms. Swee Yen coverage of RCEP, its implications are wide-ranging, as it KOH, an investment arbitration expert and a partner at effectively creates one of the world’s largest free trade Wong Partnership; Jason TAN, the lead counsel from zone with tariffs eliminated for about 92 percent of the Singapore’s Attorney General’s Chambers for RCEP negoti- goods traded and the presence of a single rule for each ations; and the interviewer, Chié NAKAHARA, an expert in product that applies across all 15 contracting parties. international arbitration, based in Japan and a partner at Nishimura & Asahi. —continued on page 3 Note from the Editor —continued from page 1 Our feature article presents the perspectives of four interna- dles matters involving Hong Kong-seated China-related arbi- tional law experts on the recently signed treaty, the Regional trations, sheds light on the concerns as well as Comprehensive Economic Partnership (“RCEP”). These opportunities that exist in these circumstances. experts share their insights on questions such as how the treaty has been received in their respective jurisdictions and Finally, we have brief regional updates which provide a flavor any relationship that might exist between RCEP and the of the more interesting international law-related develop- Comprehensive and Progressive Agreement for Trans-Pacific ments that took place during the course of this year. Partnership (“CPTPP”) as well as China’s Belt and Road Initiative (“BRI”). I am grateful to Dr. Erie and Dr. Gu for their trust in me to bring this project to life as well as the helpful assistance The next article discusses Hong Kong and its prospects in from the contributors as well as the assistant to the editor. preserving its role as a hub for China-related international I hope that you will find this inaugural issue to be informa- arbitration. No doubt readers will appreciate the political tive and thought-provoking and look forward to receiving sensitivities involving Hong Kong over the past couple of any feedback you may have. Thank you for reading. years. The author of this article, a foreign lawyer working at a Chinese law firm based in Hong Kong who regularly han- Chiann Bao, Arbitration Chambers 2 Asia-Pacific Interest Group Newsletter Inaugural Issue - January 2021 Feature: Expert Perspectives on RCEP —continued from page 2 TAN: The tremendous undertaking of RCEP with the being said, I believe that RECP, together with the CPTPP, emphasis on ASEAN centrality during the negotiations has will work together to strengthen the economies of the con- cemented ASEAN’s place in the regional economic archi- tracting parties, building on their respective strengths in tecture. While the earlier ASEAN plus one FTAs (which are technology, manufacturing, agriculture, and natural FTAs concluded between ASEAN and a free trade partner, resources. RCEP is a feather in the cap for global trade and e.g. ASEAN-China FTA) had laid the ground, I see RCEP as multilateralism. RCEP shows that China and ASEAN have setting a new precedent for ASEAN as an economic bloc the responsibility to jointly fight against anti-globalisation and how it interacts with the rest of the world. and trade protectionism, and strive to bring bright pros- pects to the region and the world. It is of note that despite ELMS: RCEP includes three important elements. First, it the severe economic impact of the COVID-19 pandemic, delivers direct economic benefits creating a market in Asia the trade volume between China and ASEAN has risen for Asia. Second, it should be viewed as a baseline with against the downward trend. In fact, ASEAN overtook the future adjustments to broaden and deepen the included EU to become China’s largest trading partner during the commitments. This could include the acceleration of tariff January-June period in 2020. The signing of RCEP echoes cuts and the elimination of additional services and invest- China’s BRI to promote regional integration and further ment restrictions.