In a significant endorsement of China’s judicial system, a Pakistani financial institution has formally commended the Xinshi District People’s Court in Urumqi for its expert mediation in resolving a complex labor dispute. The bank’s letter of appreciation highlighted the court’s professional handling of a case involving its former Urumqi branch head, underscoring the effectiveness of China’s legal framework for foreign enterprises operating within the Belt and Road Initiative corridor.
The dispute originated when the employee, identified only as Mr. Zhao, declined a mandatory position rotation required under Chinese financial regulations in 2024. Zhao, who had held an open-ended contract since 2016, cited health considerations, family obligations, and language barriers as reasons for refusing the transfer. Following unsuccessful negotiations, the bank terminated his contract with standard compensation, which Zhao refused to accept while simultaneously failing to perform his duties, thereby disrupting branch operations.
After labor arbitration ruled in Zhao’s favor, the bank pursued litigation in the Xinshi District Court. Recognizing the case’s sensitivity concerning both foreign investment protection and employee rights, the court initiated a meticulous mediation process. Judicial authorities educated Zhao about labor contract stipulations and potential legal consequences of his online criticisms against the bank, while simultaneously advising the financial institution about reputational risks associated with the dismissal.
The breakthrough came when both parties agreed to revised terms: Zhao removed his online posts and the bank enhanced its compensation package. The resolution allowed the bank to maintain operational continuity while protecting the employee’s legitimate rights.
The Pakistani bank specifically noted that the court’s intervention created ‘a stable, fair, transparent, and predictable legal environment’ that strengthens foreign investor confidence. This case has now become a benchmark for how Chinese judicial services support international economic cooperation, particularly within the China-Pakistan Economic Corridor framework.