OPINION – International role for the Special Administrative Regions in the legal fields and recent developments in the international status of the HKSAR

By José Luís de Sales Marques

Two recent events of international significance demonstrate how the two Special Administrative Regions are important components of China’s global presence and its growing importance as a responsible power committed to multilateralism and dialogue as means to achieve world peace, sustainable development, and good global governance.

The first of these events is the creation of the Hong Kong-based International Organization for Mediation (IOMed), an intergovernmental body established in May 2025 to provide mediation services for international disputes.

It is an ambitious initiative which bridges inter-state disputes, disputes between a state and a national of another state, such as those opposing a state to an investor, and international commercial disputes.

All cases are submitted to the mediation body by mutual consent, fostering a constructive spirit of resolving complex cases through consultation and peaceful means while respecting differences in legal and political systems. This marks significant progress compared with the disruptive, confrontational, and unilateral approaches that certain powers and parties have recently adopted, often disregarding international norms, multilateral organisations, and existing conflict-resolution mechanisms.

IOMed was initiated by 19 countries, including China, in a process that began in 2022, with 33 nations eventually becoming founding members. These are mainly developing countries from Africa, Asia, and South America, and include four Portuguese-speaking nations – Angola, Equatorial Guinea, Guinea-Bissau, and Timor-Leste. It is the world’s first intergovernmental legal organisation dedicated to resolving international disputes through mediation, a principle enshrined in the UN Charter. Yun Sun, writing for Brookings (6 June 2025), noted that the concept originated from the dispute surrounding the Grand Ethiopian Renaissance Dam on the Blue Nile among Ethiopia, Sudan, and Egypt. As the dam’s reservoir directly affected downstream water availability, Ethiopia’s decision to begin water conservation in 2020 led to a major dispute with the other two countries. The settlement was mediated by China, which had partially funded the project and was also involved in designing and operating the power grid.

This new intergovernmental body was inaugurated on 20 October 2025 in Hong Kong, with Vice Foreign Minister Hua Chunying in attendance. Its headquarters are located at the Old Wan Chai Police Station, a colonial heritage building. Teresa Cheng Yeuk-wah, legal counsel and former Secretary for Justice of the HKSAR (2018–2022), was appointed Secretary-General of the organisation’s Secretariat. There are two mediation panels: one dedicated exclusively to state-to-state mediations and another general panel for all other cases. The governing body, the IOMed Council, is composed of one representative from each member state.

This is a landmark event for the HKSAR and the international community, reaffirming China’s commitment to promoting the rule of law on the global stage under the concept of the Global Governance Initiative. Moreover, it clearly indicates that Hong Kong’s reputation as a trustworthy and experienced international legal hub for private disputes has now been extended to those involving states. This represents a significant enhancement of its international standing and a new step in applying the principle of “One Country, Two Systems”.

The engagement of the HKSAR as a specialised actor on the international stage, leveraging its history and specificity as a Special Administrative Region of the PRC, mirrors the role Macau plays in relation to the Portuguese-speaking countries. However, under the same principle, meaningful differences arise from the distinct historical backgrounds and economic functions of the two regions. Hong Kong is a major service platform linking China and the world, providing financial, legal, technical, and logistical services. It plays a crucial role in the internationalisation of the yuan, the prominence of its financial markets, and its well-established reputation as an international arbitration centre. The incorporation of a new intergovernmental organisation within the HKSAR thus represents an upgrade to its international status.

Macau, by contrast, defines itself as a world centre of tourism and leisure, including gaming. Beyond these tangible features, its most significant characteristics lie in the cultural, legal, economic, and institutional value derived from its historical connections with the Portuguese-speaking countries.

Accordingly, its international role – designated by the Central Government – has been that of a platform for relations between China and the Lusophone world since 2003, formally known as the Forum for Economic and Trade Co-operation between China and the Portuguese-speaking Countries.

Knowledge and trust in the system are fundamental pillars for the region to be perceived as an international financial player, even in a specialised niche, thereby contributing to the 1+4 diversification strategy within the framework of the Greater Bay Area

It was under this framework that the 13th Forum of Presidents of the Supreme Courts of Portuguese-speaking Countries and Regions took place in Macau in mid-October 2025, under the theme “Law and Justice as Drivers of Cultural Integration and Socioeconomic Development”. The Forum, hosted by Macau’s Court of Final Appeal, brought together judicial representatives from seven Portuguese-speaking countries.

In his inaugural address, Chief Executive of the MSAR Sam Hou Fai – formerly President of the Court of Final Appeal and host of the 2003 edition of the same Forum – reaffirmed Macau’s role as a bridge between China and the Portuguese-speaking world through legal and judicial cooperation. He stressed that “we must use the certainty of law to offset uncertainty and the fairness of justice to safeguard social and economic development,” adding that Macau, with its Chinese roots, Western connections, and cultural blend, is well positioned to advance legal communication, judicial trust, and mutual benefits.

Judge Song Man Lei, the new President of the Court of Final Appeal, underlined the changes achieved over the past two decades to “refine the judicial system, adopt a series of reforms to improve the allocation of judicial resources and increase the efficiency of justice,” while preserving the city’s legal heritage. She noted that Portuguese legal protocol and language continue to be maintained in judicial proceedings. João Cura Mariano, President of Portugal’s Supreme Court of Justice, hinted at developing a digital platform to enable the timely sharing of relevant judicial decisions among jurisdictions, as well as an Observatory of Lusophone Justice dedicated to comparative studies of systems and best practices.

While adapting to new realities within the region and the nation, Macau’s legal system – based on the Portuguese legal matrix – remains one of the institutional factors that most benefit the region in its dealings with the Lusophone world. In an upcoming article in Foreign Direct Investment (FDI), this author and Zhang Haiyan, Professor at NEOMA Business School (France) and IEEM, argue that the Macau Forum, by providing a platform for policy dialogue, investment facilitation, and cultural exchange, reduces institutional distance between China and the Portuguese-speaking countries and creates conditions conducive to FDI.

In this context, the ongoing legal reforms in Macau’s financial sector will significantly enhance effectiveness and capital allocation with respect to Portuguese-speaking countries – provided they are properly promoted in those jurisdictions. Knowledge and trust in the system are fundamental pillars for the region to be perceived as an international financial player, even in a specialised niche, thereby contributing to the 1+4 diversification strategy within the framework of the Greater Bay Area.

As the city is illuminated by the sounds, colours, and flavours of another Festival da Lusofonia – the celebration of Lusophone culture and joie de vivre at the Taipa Houses Museum in Taipa – the role of the two Special Administrative Regions as China-based multicultural platforms for cooperation with third countries and regions in the legal field is being further enhanced. This is a most welcome development and a clear statement that, under the principle of “One Country, Two Systems”, these SARs are relevant players in conducting international actions within the framework of China’s Global Initiatives in Development, Security, Civilisations, and Governance.