HARMONISING COMPLIANCE IN CHINA AND MALAYSIA CROSS BORDER COMMERCIAL RELATIONSHIP: AN ALTERNATIVE DISPUTE RESOLUTION PERSPECTIVE

Abstract

The cross-border commercial relationship between China and Malaysia has continued to grow over the years, with China being Malaysia’s largest trading and business partner and a major source of foreign direct investment. However, the relationship has not been without issues and challenges within the realm of cross-border business, trade and commercial formation of contracts and agreements and its implementation between both contracting parties. Holistic dispute resolution mechanisms are therefore crucial towards harmonising compliance in cross-border commercial relations between China and Malaysia. Alternative dispute resolution (ADR) mechanisms such as negotiation, mediation, arbitration, online dispute resolution, and expert determination can be used to overcome contractual issues and legal comprehension challenges such as the language barrier, cultural differences, in view of differing legal systems within historical and contemporary legal norms and developments. These mechanisms can provide parties with a cost-effective, efficient, and flexible means of resolving conflicts while preserving long-term cross-border business inter-relationships between two unique jurisdictions comprising China and Malaysia.   Alternative dispute resolution mechanisms can strengthen business, trade, and commercial engagements at many levels-both public and private ventures- and thus considerably enhance cross-border compliance, and foster a more stable ease of doing business environment. Alternative dispute resolution mechanisms can facilitate harmonious compliance in cross-border commercial relations between China and Malaysia. The use of these mechanisms could overcome commercial and business disputes and uphold bilateral business integrity and build long -term commercial interests in the long run. By adopting ADR mechanisms, China and Malaysia can strengthen their trade and business ties and foster a more stable and holistic business environment at both ASEAN and global environment.