Beijing's recent decision to set up three international commercial courts to resolve disputes arising from its Belt and Road Initiative (BRI) has been viewed as a logical next step, experts said.
And China can now set up an internationally accepted dispute resolution system that businesses can turn to, they added.
Official Chinese media last month reported that China's Supreme People's Court will set up international courts in Beijing, Shenzhen and Xi'an, the capital of Shaanxi province, to handle BRI-related cases.
The BRI will connect over 60 per cent of the world's population - in more than 60 countries across Asia, Europe and Africa - through a massive logistics and transport network of roads, ports, railway tracks, pipelines and power plants, for the seamless flow of capital, goods and services.
The participating countries cover about 30 per cent of the world's gross domestic product and 35 per cent of world trade.
Mr Keith Brandt, managing partner of law firm Dentons Hong Kong, said China's move is an understandable response to the reluctance of many Chinese state-owned enterprises, which feel compelled to cede conflict resolution to foreign arbitration commissions.
He said: "The argument advanced appears to be, why shouldn't dispute resolution be undertaken on home territory - when the very underlying reason for the opportunity that has given rise to potential conflict emanates from the initiative of the state-owned sectors' benefactor, the Chinese central government?"
Those joining the BRI would have to accept that "disputes along the BRI are too delicate and important to be resolved in Hong Kong", said Mr Robson Lee, who is a partner at United States law firm Gibson Dunn's Singapore office.
Singapore Business Federation chairman Teo Siong Seng said China's effort to create a fair and just international mechanism to settle disputes linked to the BRI will be welcomed by the Singapore business community, and boost its confidence in taking part in BRI projects.
The benefits of Beijing's decision can also extend beyond businesses.
It could provide momentum for the various legal systems to create common standards that can be applied globally, said Mr Francis Goh, partner and head of international arbitration at Eversheds Harry Elias.
Hong Kong's legal sector could also benefit from the spillover effect as it is the gateway to China.
Observers also said the development gives the city's legal sector "the chance to internationalise", similar to how the Singapore International Commercial Court positions itself as the go-to court in the region for cross-border disputes.
