HONG KONG -- A Rome-based legal body has opened its inaugural overseas liaison office in Hong Kong, in a move officials say will strengthen the city's ambition to become an international legal hub.

At a ceremony Monday, Hong Kong's chief executive, John Lee, announced the establishment of the International Institute for the Unification of Private Law (UNIDROIT) Asia-Pacific outpost, saying the office would accelerate "deeper regional collaboration and better understanding and implementation of private law." Officials in Hong Kong have stepped up efforts to position the Chinese city as a leading destination for resolving commercial and cross-border disputes amid increasing competition from regional rival Singapore. But the city's legal landscape, long praised for its sophisticated common law system, has undergone significant changes in recent years as Beijing has asserted greater control over Hong Kong's political and legal systems. Critics say national security trials involving former pro-democracy figures have tainted perceptions of the city's rule of law.

Founded in 1926, UNIDROIT is a 65-member intergovernmental body that works to harmonize private and commercial law.

"In practical terms, I would view UNIDROIT's establishment of an office in Hong Kong as significant," said Shahla Ali, a professor at the University of Hong Kong's Faculty of Law. Ali said the regional office could facilitate exchanges between international and regional practitioners. It could also "strengthen Hong Kong's contribution" to the development of commercial law and its role in resolving disputes, she said.

Lee said the UNIDROIT liaison office would collaborate with local organizations, including the International Organization for Mediation (IOMed) in Hong Kong, as well as the Hong Kong Regional Arbitration Center, an intergovernmental body serving countries in Asia and Africa, and the Hague Conference on Private International Law's Asia-Pacific office.

IOMed was established in May 2025, with its founding members largely from developing countries and the Global South. Its primary goal is to resolve commercial disputes through mediation rather than litigation or arbitration, offering a cheaper and faster alternative to court proceedings.

Legal practitioners in Hong Kong said the government has been encouraging businesses to use mediation to resolve cross-border disputes involving international contracts. However, they noted that mediation outcomes are generally not enforceable.

Italian newspaper Il Foglio reported earlier this year that Beijing had approached UNIDROIT in 2024 about establishing a liaison office in Hong Kong, including offering to cover the operating cost of a new office.

Yu Ning, director general at the Department of Treaty and Law at China's Ministry of Commerce, addressed Monday's ceremony in a prerecorded video message. "The liaison office is the result of collaboration and trust between China and UNIDROIT," she said. "China will continue to be a practitioner and defender of multilateralism." As more Chinese businesses expand overseas, cross-border commercial dispute cases are also expected to increase, potentially creating opportunities for Hong Kong to meet growing demand.

Ultimately, that will depend on how international businesses perceive Hong Kong's legal system, said HKU's Ali.

"International dispute resolution users will continue to look to indicators of neutrality as measured through the fairness, independence and predictability of their proceedings, wherever they are seated."