The Belt and Road Initiative (BRI) employs various legal structures to manage and govern its extensive network of projects across multiple countries. These structures reflect the complexity and international scope of the initiative, involving bilateral agreements, multilateral institutions, and national laws.
Bilateral Agreements: A significant portion of BRI’s framework is based on bilateral agreements between China and host countries. These agreements often include terms on investment, construction, operation, and maintenance of infrastructure projects. They are tailored to meet the specific legal, economic, and political conditions of each partner country.
Multilateral Institutions: BRI also involves multilateral cooperation through institutions like the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund. These institutions provide financial support for BRI projects and ensure that there are governance structures in place to manage the risks associated with large-scale infrastructure investments.
National Laws: Projects under the BRI must comply with the national laws of the countries where they are located. This includes regulations related to environmental protection, labor rights, and corporate governance. Chinese companies and their partners need to navigate these legal landscapes, which can vary significantly from one country to another.
Soft Law Mechanisms: BRI utilizes various forms of soft law, such as memorandums of understanding (MoUs), which outline the intentions of the parties involved but are generally not legally binding. These MoUs often set the stage for more detailed negotiations and agreements.
Dispute Resolution Mechanisms: Given the international nature of BRI, there are provisions for international arbitration and dispute resolution to handle conflicts that arise during the execution of projects. These mechanisms are crucial for ensuring that disputes are settled impartially and based on international law.
ICAS-Bulletin-February-28-2024_9.pdf