Arbitration in International and Chinese Law

Arbitration is a form of alternative dispute resolution (ADR) in which parties to a dispute agree to submit their dispute to a neutral third party, known as an arbitrator, for a binding decision. Arbitration is often used to resolve commercial disputes, as it provides a flexible and efficient alternative to litigation.

Arbitration under International Law

Arbitration is governed by international law, including the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958). The New York Convention sets forth the minimum standards for the recognition and enforcement of foreign arbitral awards in over 150 countries.

Under international law, parties are free to choose the place of arbitration. However, certain countries, such as London, Paris, and Geneva, have become popular venues for international arbitration due to their well-developed legal frameworks and experienced arbitrators.

Arbitration under Chinese Law

China has a long history of arbitration, with the first arbitration law being enacted in 1994. The current Chinese Arbitration Law was adopted in 2017 and provides a comprehensive framework for the conduct of arbitration in China.

Under Chinese law, arbitration can be conducted in China or abroad. However, there are certain restrictions on the place of arbitration for disputes involving Chinese parties. For example, disputes involving Chinese state-owned enterprises must be arbitrated in China.

The China International Economic and Trade Arbitration Commission (CIETAC) is the leading arbitration institution in China. CIETAC offers a wide range of arbitration services, including international arbitration, domestic arbitration, and maritime arbitration.

Factors to Consider When Choosing the Place of Arbitration

When choosing the place of arbitration, parties should consider the following factors:

Neutrality: The place of arbitration should be neutral to both parties. This is especially important in international arbitration, where parties may come from different countries with different legal systems. Convenience: The place of arbitration should be convenient for both parties. This includes factors such as travel time, language, and cultural differences. Legal framework: The place of arbitration should have a well-developed legal framework for arbitration. This includes laws that govern the conduct of arbitration, the recognition and enforcement of arbitral awards, and the availability of experienced arbitrators. Cost: The cost of arbitration can vary depending on the place of arbitration. Factors to consider include the fees of the arbitration institution, the arbitrators, and the lawyers.

Conclusion

Arbitration is a valuable tool for resolving commercial disputes. Parties to a dispute can choose to arbitrate their dispute in any country that has signed the New York Convention. When choosing the place of arbitration, parties should carefully consider the factors discussed above in order to select a venue that is neutral, convenient, and has a well-developed legal framework.