PROTECTING CROSS BORDER COMMERCIAL RELATIONSHIP BETWEEN MALAYSIA AND CHINA AS A CASE STUDY: AN ALTERNATIVE DISPUTE RESOLUTION PERSPECTIVE

Abstract

The cross-border economic relationship experienced by Malaysia has seen continuous growth over the years, with China emerging as Malaysia's largest trading and business partner, as well as a significant source of foreign direct investment. However, this relationship has not been without its share of challenges and issues in the aspect of cross-border business, trade, and the formation and execution of commercial contracts and agreements between the involved parties. To ensure a comprehensive approach to compliance in cross-border commercial relationships, it is imperative to have effective dispute resolution mechanisms in place. Alternative dispute resolution (ADR) mechanisms, including negotiation, mediation, arbitration, online dispute resolution, and expert determination, can serve as valuable tools to address contractual issues and overcome legal comprehension challenges. These challenges often arise due to language barriers, cultural differences, and the existence of varying legal systems within the historical and contemporary legal norms and developments of both jurisdictions, which encompass civil and common law traditions. By employing these mechanisms, parties can find cost-effective, efficient, and flexible ways to resolve conflicts while preserving the long-term cross-border business relationships between two distinct legal environments. Alternative dispute resolution mechanisms hold the potential to enhance business, trade, and commercial interactions at various levels, encompassing both public and private ventures. Consequently, they can significantly improve cross-border compliance and contribute to creating a more stable and conducive business environment. By utilizing ADR methods, parties can navigate and resolve commercial and business disputes, thereby upholding the integrity of bilateral business arrangements and fostering enduring commercial interests over time. Embracing ADR mechanisms can serve as a means for China and Malaysia to fortify their trade and business partnerships and cultivate a more stable and holistic business environment, not only within the ASEAN region but also on a global scale.