A veteran lawyer said Hong Kong offers competitive legal and mediation support for mainland firms undertaking major projects in Belt and Road regions.

David Blumental stressed that having legal backup is key these days as the "force majeure" clause could be triggered in certain Middle East projects amid the region's ongoing conflict.

"Force majeure" refers to a situation where an unexpected event, such as a war, crime, or an earthquake, prevents a party from fulfilling their obligations under contracts.

Blumental, an acquisitions and mergers expert at law firm Simmons & Simmons, noted that more and more mainland enterprises could face uncertainties as they expand their foothold in the Belt and Road region.

"So the parties need to review the contracts carefully," he told RTHK at the 11th edition of the Belt and Road Summit in Wan Chai.

"We've always had 'force majeure' in the contracts; we always negotiate, but we often think, 'well, we'll never need it'. But now we're actually using it," he said.

"And these are cases that - over many years of doing these sorts of projects - we have rarely, rarely seen true events of force majeure, but now we're seeing them as the world has changed.

"So this is a very important learning [experience] for us as well."

Pointing to the complexity of large international project contracts, Blumental said Hong Kong, which practises common law, can utilise its strengths to support arbitration and mediation procedures.

"So Hong Kong has a unique advantage in this, particularly in the world that surrounds us here in Asia is principally civil law," he said.

"We also have the Hong Kong International Arbitration Centre, which has very developed rules and a large body of sophisticated arbitrations.

"So there's expertise, that's very important for Hong Kong and makes Hong Kong a competitive location alongside places like Singapore, London, and Dubai, for example."

The lawyer urged Hong Kong's professional industries to tap into Belt and Road markets by leveraging their global experience, while partnering with mainland firms with strong engineering and construction expertise.



Edited by Raymond Yeung