Multi-jurisdictional enforcement of arbitration awards and issues of State immunity

Enforcing arbitral awards against sovereign States continues to present both strategic and practical challenges – particularly where assets, different jurisdictions, and Sovereign immunity arguments intersect. 

These issues were at the centre of a recent London International Disputes Week discussion co-hosted by Withers and Blackstone Chambers. The discussion drew on recent experience acting for Zhongshan Fucheng Industrial Investment Co. Ltd. ('Zhongshan') in its successful arbitration against the Federal Republic of Nigeria and subsequent enforcement efforts.

By way of background, Withers successfully represented Zhongshan in an arbitration against Nigeria for breaches of the China-Nigeria bilateral investment treaty as a result of certain actions taken by actors and entities of the Nigerian state.  The arbitral tribunal, chaired by Lord Neuberger, awarded Zhongshan approximately USD 70 million in March 2021.  After Nigeria failed to pay on the award, Zhongshan commenced enforcement proceedings in various jurisdictions.

A key theme from the discussion was the importance of a coordinated, multi-jurisdictional enforcement strategy. In the Zhongshan case, proceedings were pursued in parallel across a number of jurisdictions, including the BVI, France, the UK and the US. Perspectives from these key enforcement venues from panellists highlighted the differing approaches taken to recognition and execution – and why careful and strategic coordination is often critical to success.  The panel discussion also underlined how enforcement against a State is rarely simple or linear – it requires flexibility and creativity.

As cross-border disputes become increasingly complex, the Zhongshan case illustrates a broader point: securing an award is only the first part of the process. A well-executed, global enforcement strategy is often decisive in translating that success into recovery.

Zhongshan remains the only case where a Chinese investor has successfully secured and enforced an investment arbitration award against an African State.  

For further insight into the issues raised by this case, and to explore our related articles on investment treaty protection, please see: 

• International investments: securing awards and enforcing judgments worldwide
• Withers obtains groundbreaking judgment concerning a bilateral investment treaty
• Investment treaties and their role in protecting Chinese businesses abroad