• Journal of Arbitration Studies
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• v.9 no.1
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• pp.183-232
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• 1999

The legislative body of The People's Republic of China, the National People's Congress, enacted the first arbitration act in China's history on August 31st, 1994, which took effect on September 1, 1995. The problems revealed through a comparison of China's Arbitration Act with the UNCITRAL model arbitration law were studied as well as the enacting process, background, status and system, important contents, problems of Chaina's Arbitration Act, and the differences between the old arbitration regulations and the new arbitration act. These are all discussed in this paper. The Arbitration Act is the basic act ruling over china's arbitration system: it unified the previously confusing laws and regulations relevant to the arbitration system, and the act brings out fundamental changes in China's domestic arbitration to the level of international arbitration standards. It is possible to view this act as a cornerstone in China's arbitration system. But, as discussed in this paper, there are still a lot of problems with the new act and only a few of the merits which the UNCITRAL model arbitration law has. First, under China's Arbitration Act, parties enjoy autonomy to some degree, but the range of party autonomy, compared to that of the UNCITRAL model arbitration law, is too narrow. Second, because China's Arbitration Act didn't explicitly provide issues which can give rise to debate, a degree of confusion in its interpretation still remains. Third, China's Arbitration Act's treatment of some important principles was careless. Fourth, in some sections, China's Arbitration Act is less reasonable than the UNCITRAL model arbitration law. These problems must be resolved in order to develop China's arbitration system. The best way of resolving these problems for China is to adopt the UNCITRAL model arbitration law. But it is difficult to expect that China will accept this approach, because of the present arbitration circumstances in China. Although it is difficult to accept all the contents of the UNCITRAL model arbitration law, China's legislators and practitioners must consider the problems mentioned in this paper.

• Journal of Arbitration Studies
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• v.30 no.4
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• pp.31-50
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• 2020

The leading foreign arbitration agencies have established a representative office in China since 2015 to improve their arbitration agencies' problem being neglected by foreign parties. The Chinese government has enacted a system in which mediation services can be provided in China. The Chinese government seems to expect that if foreign arbitration agencies enter China and compete with Chinese arbitration agencies, Chinese arbitration agencies will also have an opportunity to develop through competition. In addition, it seems to reflect the expectation of Chinese parties that rather than using a foreign arbitration agency under foreign countries as the arbitration site to settle disputes, it would be more advantageous to arbitrate in China as the arbitration site with a foreign arbitration agency. The Chinese government has adopted a strategy to gradually open China's commercial arbitration service market to foreign arbitration agencies. Regarding the scope of arbitration services, China opened an arbitration service market limited to non-profit activities and foreign arbitration agencies in 2015 and then opened it to commercial activities in 2019. Also, the provision of arbitration services by foreign arbitration agencies is limited to foreign-invested companies registered in the Shanghai Pilot Trade Zone and parties in China, which are the counterparties of disputes between them. It will take a little more time to see how much the Chinese government will expand the number of parties that can use foreign arbitration agencies in the future.

• Journal of Arbitration Studies
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• v.8 no.1
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• pp.87-122
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• 1998

This study reports on the Arbitration system in the China International Economic and Trade Arbitration commission (CIETAC) and the International Arbitration problems of Korea and China. The Chines laws including Arbitration laws are influenced by the civil Code system Particulary the German system. China is contracting state of the U N Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention), which became effective in the China April 22, 1987. International Commercial Arbitration is popular in China. CIETAC is the sole International Commercial Arbitration body in China. CIETAC has two sub-commissions, on is shen zhem S E Z and the other in shanghai. The CIETAC rules, are similar to the rules in effect in Countries using a civil Code system. Both an agreement to submit an existing dispute to Arbitration and an Arbitration clause in a contract relating to future disputes are recognizeal as valiad Arbitration agreements. CIETAC has the power to make a decision on disputes concering the validity of the Arbitration agreements, or jurisdiction over a specicific case.

• Journal of Arbitration Studies
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• v.14 no.2
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• pp.135-172
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• 2004

While doing business in China foreign companies occasionally find themselves embroiled in disputes with Chinese individuals, companies or the Chinese Government. There are three primary ways to resolve a commercial dispute in China are negotiation, arbitration and litigation. The best way of dispute resolution is negotiation as it is the least expensive method and the working relationship of both parties concerned in dispute. But negotiations do not always give rise to resolution. Arbitration is the next choice. Unless the parties concerned can agree to resort to arbitration after the dispute has arisen, the underlying contract namely, sales contract or separate agreement must show that disputes will be resolved by arbitration. Agreements to arbitration specify arbitration body and governing law. There are two Chinese government -sponsored arbitration bodies for handling cases involving at least one foreign party: China International Economic and Trade Arbitration Commission(CIETAC) and China Maritime Arbitration Commission(CMAC) for maritime disputes. Contracts regarding foreign companies doing business in China often designate CIETAC arbitration. CIETAC distinguishes between two kinds of dispute resolutions, foreign-related arbitration and domestic arbitration. For a dispute to be classified as foreign-related arbitration, one of the companies must be a foreign entity without a major production facility or investment in China. CIETAC has published rules which govern the selection of a panel if the contract does not specify how the choice of arbitration will be handled. CIETAC's list of arbitrators for foreign-related disputes, from which CIETAC's arbitrators must en chosen, includes may non-Chines arbitrators. But many foreign experts believe that some aspects of CIETAC needs to be improved. The purpose of this paper is to improve the understanding of arbitration in China, CIETAC by way of studying the current situation and improvement of international commercial arbitration in China.

• Journal of Arbitration Studies
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• v.18 no.3
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• pp.117-138
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• 2008

This study lies on building the International Standardization of China Arbitration System for improving a relationship of mutual trust and the safety trade between China and other worldwide countries, especially, South Korea as their one of the biggest trading partners through the comparative analysis of China and UNCITRAL Arbitration Law. In this analysis, the differences from China and UNCITRAL in arbitration law are like belows ; lack of arbitrator's international mind, the limitation of private property right, prohibition of Ad. hoc arbitration, arbitrator's biased nationalism, localism, and their short specialties. a deficiency of the objectiveness for arbitrator's election, a judgement rejection of claimants by using nonattendance and walkout, impossibility of prior and temporary property custody for execution of arbitration award. etc. For the improvement of the International Standardization of China Arbitration, this paper propose as follows: 1) Extension of private property right, reorganization of tax system, realization of open competition, exclusion of 'Sinocentrism', globalization of arbitration system 2) The abolition of old fashioned bureaucracy with approval for ad.hoc arbitration 3) An education for arbitrator's internationalization, specialty, and to promote legal knowledge 4) A settlement of the third country arbitrators' selection for reflecting interested party's decision by the court in a selection system of arbitration committee. 5) Institutionalization of arbitration judgment that prevent for claimant's avoidance by using a withdrawal and an intentional absent 6) A permission of the right of claimant's court custody directly before the begging of arbitration request for the prevention for destruction of evidence and property concealment 7) Grant of the arbitration tribunal's interim measures of protection for private property preservation to the third party, proof security, prevention from the loss that selling the corruptible goods 8) Improvement of arbitration's efficiency from the exclusion of the obstacles that are forgery, concealed evidence, and arbitrator's bribe taking Lastly, I hope that this study will serve to promote friendly economic relationship between China and South Korea and strive for international equilibrium through the achievement of China Arbitration's International Standardization. I will finish this paper with a firm belief that this will lead to more advanced studies.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.50
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• pp.61-85
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• 2011

The agreement to arbitrate is a central feature of commercial arbitration and the lack of a valid arbitration agreement is recognised as a reason why any arbitral award may not be recognized as binding by the courts or may be set aside. The purpose of this paper is to clarify the China's present arbitration law and practice in respect of determination of the validity of international commercial arbitration agreement. Most arbitration laws only require an arbitration agreement to be "in writing". But the arbitration law of the China require an arbitration agreement shall contain the following: 1. The expression of application for arbitration. 2. Matters for arbitration. 3. The arbitration commission chosen. And China's present arbitration law and practice in respect of determination of the validity of international commercial arbitration agreement are somewhat different from the other nations.

• Journal of Arbitration Studies
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• v.16 no.1
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• pp.121-151
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• 2006

As globalisation extends its effect and particularly following China's accession to the World Trade Organization(WTO) in 2001, ever greater numbers of international transactions will feature a Chinese party. China has certainly made efforts in recent years to rectify law problem. While conducting business in China, foreign companies occasionally find themselves embroiled in disputes with Chinese individuals and companies. As foreign businesses invest in the extraordinary market opportunities in China, international arbitration has also become the preferred method for handling disputes with Chinese partners or with other foreign corporation over operations in China. The new Arbitration Rules of the International Economic and Trade Arbitration Commission(CIETAC) came into force on 1 May 2005. The new rules represent a major overhaul of CIETAC arbitration procedures and are sure to enhance CIETAC's position as a leading player in the resolution of China-foreign business disputes. The changes are significant for all companies doing business in China. So, this article investigated some amendments on the basis of 2000 Rules.

• Journal of Arbitration Studies
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• v.20 no.2
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• pp.131-149
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• 2010

Since the Arbitration Law of China took effect in 1995, arbitration has grown with the economy. At the end of 2009, there were 202 arbitration institutions in China. Among them, China International Economic and Trade Arbitration Commission(CIETAC) has adopted online arbitration and has settled internet domain name disputes since 2001. CIETAC Domain Name Dispute Resolution Center(DNDRC) has accumulated abundant experiences of online arbitration in the field of domain name disputes. Based on those experiences, on 1 May 2009, CIETAC implemented the CIETAC Online Arbitration Rules(Rules') to regulate the resolution of e-business disputes as well as other business disputes. With this background, this article aims to study the status quo, practices and issues of online arbitration conducted by CIETAC. For the purpose of the article, a general picture of online arbitration is outlined first, followed by introducing the steps of the online arbitration procedure. According to the 'Rules', the entire arbitration process is conducted using online communication methods which are cost-effective and efficient. To facilitate the development of online arbitration, legal barriers need to be removed. This article considers main legal issues of online arbitration in China and proposes amendment to Chinese Arbitration Law, in particular, the recognition of the validity of electronic arbitration agreements and awards.

• Journal of Arbitration Studies
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• v.29 no.2
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• pp.161-199
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• 2019

As international trades between Korea and China increase, the number of civil disputes also increases. The civil dispute settlement system and the court system in China are distinctive from those of Korea. China has its own court systems which are characterized by the Chinese Communist System. Due to the influence of the decentralized local autonomy tradition, the case laws of each Province in China are not unified throughout the China. This is partly because only two instances are provided in China, and the parties cannot appeal to the Supreme People's Court of China unless there is a special reason. In Korea, three instances are provided and parties can appeal to the Supreme Court if a party so chooses. In addition, there are many differences in the judicial environment of China compared to Korea. Therefore, if there is a dispute between a Korean party and a Chinese party, arbitration is recommended rather than court litigation. This article examines the points to be considered for interim measures in China during arbitration. Where the seat of arbitration is Korea, interim measures cannot be taken by the order of the Chinese court in the middle of or before arbitration procedures. On the other hand, it is possible to take interim measures through the Chinese court in the middle of or before the arbitration procedure in China or Hong Kong. It also reviews the points to be noted in case of the enforcement of arbitration awards in China where permission from the upper Court is required to revoke or to deny the recognition or enforcement of a foreign-related or foreign arbitration award.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.29
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• pp.3-37
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• 2006

This writing is for the purpose of investigating the specific character and problem point of China arbitration system which has near 90 years history and overviewing the drift of system improvement which happens recently. The arbitration system of China which traditionally does not acknowledge ad hoc arbitration, unlike most of the other nations that employ The UNCITRAL model law and make it their own legislation, is restrictive to the parties concerned principle of private autonomy considerably. Also the independence of arbitration is delicate, because of a civil characteristic weakness of the arbitral institutions and the intervention of the courts on the arbitration procedure and award. The dual system of domestic and international arbitration which maintains after enforcement of 1994 arbitration law is often to be a primary factor interrupting the development of Chinese arbitration system and making it vulnerable to challenges. The system improvement demand of the recent time reflects this point and makes the arbitration system of China to a international standard rather than now, so it is a desirable direction for China to be as the member of the world economy to be globalization.