Landmark ICSID victory for the People’s Republic of China

The dispute arose from a major mixed‑use redevelopment project in Shandong province. Hela Schwarz commenced the ICSID arbitration in 2017, alleging that the PRC had unlawfully expropriated land use rights held by its subsidiary during the redevelopment and, consequently, breached the PRC’s obligations under the PRC-Germany bilateral investment treaty (BIT). Hela Schwarz made these allegations despite its subsidiary already having been offered compensation by the local government in accordance with local laws and consistent with the treatment of others impacted by the redevelopment.

Ending more than eight years of proceedings and following multiple rounds of written submissions and a five-day hearing held in London in December 2022, the Tribunal’s final award dated December 10, 2025 confirmed that the PRC complied with its investment treaty obligations. The Tribunal dismissed Hela Schwarz’s claims in full on jurisdiction and merits grounds.

The A&O Shearman team was led by Singapore partner Emmanuel Jacomy and Hong Kong partner Edward Taylor, supported by Singapore senior associate Eric Li.

More details of this case can be found here.