Court: Guangzhou Intermediate People's Court (2025)
Facts: A Guangzhou building materials exporter (Company E) signed a ceramic sintered-stone export contract with a Slovenian company (Company F) on CIF terms, settled by letter of credit. After shipment, Company F refused payment and demanded returns, citing color differences and specification deviations. The cross-border dispute stalled due to communication difficulties and high resolution costs. Company E sued in Guangzhou Intermediate Court demanding 1.2 million USD in payment.
Holding:
(1) The court applied party autonomy to determine that Chinese law governed the contract;
(2) It innovatively adopted a compound mediation model combining judicial interpretation and mediator facilitation, inviting mediators familiar with China-Slovenia trade practices;
(3) Cross-border video mediation allocated responsibility: Company E bore a 10% discount for minor specification deviations; Company F immediately paid the remaining 90% and waived return claims.
Significance:
· Provides an efficient resolution path for Belt and Road cross-border trade disputes, reducing enforcement costs;
· Reflects Guangdong courts' mediation-first approach in foreign-related trials, helping Guangdong exporters stabilize overseas markets;
· Clarifies quality inspection and payment obligations under CIF terms, providing reference for similar cross-border building materials trade.