Legal Tensions and Institutional Innovations: The Role of Local Self-Government in International Economic Agreements and Dispute Resolution

This study explores the evolving role of local self-governments in China in shaping international economic law through a detailed comparative analysis of Shanghai, Shenzhen, and Hangzhou. By examining key dimensions of institutional autonomy, governance innovation, legal tensions, and dispute resolution mechanisms, the paper investigates how these cities strategically navigate their growing influence in global economic governance. Findings reveal that Shanghai leads in global integration and dispute resolution efficiency, while Shenzhen excels in legal experimentation but faces higher tensions. Hangzhou, on the other hand, focuses on digital governance and procedural innovation. Through a combination of legal-textual coding, policy analysis, and advanced quantitative metrics, the paper demonstrates that local governments are not merely passive implementers of national law but rather active participants in multi-level governance and paradiplomacy. The research contributes to the understanding of how local actors shape global legal norms and how subnational innovation can influence international economic policy and dispute resolution.