International investments: securing awards and enforcing judgments worldwide

Whether you're a private individual, organization or a family office, investors looking for international investment opportunities can ensure that their investments are protected and future-proofed at the outset. But what happens if things go wrong? 

In this video, find out how our global arbitration team utilized their cross-jurisdictional capabilities to secure an award for our client, a Chinese investor, and successfully enforced it globally.

The case, which has been widely reported internationally, is the only instance in which a Chinese investor has both secured and enforced an investment arbitration award against an African State, making it a first of its kind.

Zhongshan vs Nigeria: Helping an international investor secure an arbitral award against a State and enforce it globally

Zhongshan Fucheng Industrial Investment Co Ltd (‘Zhongshan’) invested in the development of a free‑trade zone in Nigeria. When a local state government sought to terminate the project, forcibly evicting Zhongshan and harassing its employees, the dispute was taken to arbitration. 

One key focus of the case was witness preparation, and our team in Asia was instrumental in coordinating the process. All our witnesses were Chinese, which meant we needed to bridge not only the language gap, but also the cultural differences around international arbitration.

Although we won on the merits of the case, Nigeria did not initially comply with the award. Non-payment can be incredibly frustrating, but converting awards into payment is an area in which Withers has developed extensive expertise.

We initiated proceedings in six different countries, including the US, UK and BVI, where Withers has offices. We also drew on our network of contacts at local firms in Canada, Belgium and France as part of the global strategy.

The US was a particularly significant jurisdiction. US courts have broad discovery powers, which can enhance enforcement efforts by shedding light on global assets and banking relationships. 

In this case, we achieved an important win in the DC circuit.

What should international investors take away from this case? 

Firstly, if you are planning to make an international investment, it can be useful to consider investment treaty protection from the outset. Secondly, even when facing a State opponent, a well-planned enforcement strategy can allow you to recover what you're owed. We are very well placed to advise at every stage.

You can find out more about investment treaties and their role in protecting Chinese businesses abroad in this article.