China and India Plans to Study Legal Structure of Each Other Before Making Investments

Published Date : Apr 10, 2015

China has been making plans for huge investments in India; however, they want to study the Indian legal system first.  They have also expressed willingness to sign around five MoUs with the government of India. On Wednesday, Wu Aiying, the Chinese justice minister had a meeting with the Indian law minister Sadananda Gowda and had a discussion on legal system of India and its alternate mechanism of dispute resolution.

The NDA government has further agreed to send a group of officials to China so that even they can study the legal system of China which will help in fine tuning India's criminal justice system. Sadananda Gowda stated that China has very high disposal rates and India is willing to learn from them.

China is also interested to understand the Indian management for convicted prisoners. Hitherto, this issue comes under the domain of the home ministry. On the flip side, India also wants to have a complete picture of China’s criminal justice system. In order to seek Chinese investment as part of the Prime Minister’s 'Make in India' campaign, the ruling government is planning aggressively to motivate the Chinese organizations to build their manufacturing units in the country. Sadananda Gowda further informed that the Chinese government has also suggested some MoUs as they expect for mutual cooperation on many legal issues. He further added that, this is the issue where these two countries want interaction for alternate dispute resolution system in both the countries. Settlement of cases at the pre-litigation stage always helps in reducing pendency.

For attracting large number of foreign investments, the government has made amendments in the Arbitration Act, as it is essential for a judge to preside over many commercial disputes to get settled cases in a span of nine months. Owing to which, they will give a positive signal to the international business community.