International Arbitration Institutions in China

 

 

International arbitration institution is an entity established for arbitration in accordance with international treaties or resolutions of international organizations, and attached to specific international organizations but not to any country. The classification shall include but is not limited to: ad hoc arbitration, which is an arbitration tribunal composed of arbitrators elected by both parties according to the agreement of both parties to the dispute and to the extent prescribed or permitted by law. Ad hoc arbitration generally has no fixed organization, office place, staff nor arbitration rules, and it shall be dissolved immediately after hearing the dispute and making an award. As a main form of arbitration in the past, ad hoc arbitration is still commonly used nowadays. In terms of legislation, ad hoc arbitration is only included in arbitration laws by some countries.

 

International arbitration institution is an entity established for arbitration in accordance with international treaties or resolutions of international organizations, and attached to specific international organizations but not to any country.

 

(I) China International Economic and Trade Arbitration Commission (CIETAC)

 

CIETAC is a national non-government permanent arbitration institution under China Council for the Promotion of International Trade (China Chamber of International Commerce, CCOIC).

 

It was established in April 1956 by China Council for the Promotion of International Trade in accordance with the decision of the Government Administration Council of the Central People’s Government of the PRC on May 6, 1954. The organization was then called Foreign Trade Arbitration Commission.

 

With the implementation of opening-up policy in China, in order to meet the needs of the continuous development of international economic and trade relations, Foreign Trade Arbitration Commission was renamed Foreign Economic and Trade Arbitration Commission in 1980 and then China International Economic and Trade Arbitration Commission in 1988. Since October 1, 2000, CIETAC concurrently uses the “Court of Arbitration of the CCOIC” as its name.

 

(II) China Maritime Arbitration Commission (CMAC)

 

CMAC is a permanent arbitration institution established on January 22, 1959 to accept domestic and foreign maritime disputes in accordance with the decision of the State Council of the People’s Republic of China on November 21, 1958. It was then called the “Maritime Arbitration Commission of China Council for the Promotion of International Trade”.

 

On June 21, 1988, the State Council decided to rename it “China Maritime Arbitration Commission”.

 

(III) Arbitration Commissions newly established in China

 

According to the provisions of Article 79 of the Arbitration Law, arbitration institutions established before the coming into effect of this Law in the municipalities directly under the Central Government, in the municipalities where the people’s governments of the provinces or autonomous regions and in other cities divided into districts must be re-organized in accordance with the relevant provisions of this Law. The existing arbitration institutions, if not re-organized, shall be terminated on September 1, 1996.

 

A new arbitration institution shall be set up by the relevant departments of a city’s government eligible to establish such an organization in line with the law and the local chamber of commerce. Compared with the old ones, a new arbitration institution shall be independent from the administrative organ and there is no subordinate relationship between them, which is the most prominent characteristics. No explicit provisions on the jurisdiction of newly-established arbitration commissions over foreign-related cases are provided in the Arbitration Law.

 

According to Article 66 of this Law, a foreign arbitration commission can be organized and established by the China Chamber of International Commerce, while the possibility of establishing local arbitration institutions to accept foreign-related cases is not excluded.

 

Article 3 of the Notice of the General Office of the State Council on Several Issues to Be Clarified for the Implementation of the Arbitration Law of the People’s Republic of China on June 8, 1996 stipulates that, “If the parities to a foreign-related arbitration case voluntarily choose a newly established arbitration commission for arbitration, the newly established arbitration commission may accept the case.” Thus, local arbitration commissions have the right to accept foreign-related arbitration cases in the case of voluntary choice by the parties. This will be conducive to the competition between arbitration institutions, and to enhance the independence and impartiality of arbitration.

 

(IV) Hong Kong International Arbitration Centre (HKIAC)

 

HKIAC was established in 1985 as a non-profit company registered under the Laws of Hong Kong (Companies Ordinance), and was established to meet the needs of arbitration services in Asia.

 

The Council of HKIAC is composed of business, legal and other professionals of different nationalities with various expertise and qualifications. The arbitration affairs of HKIAC is managed by the Management Committee under the Council through the Secretary General.

 

The arbitration affairs of HKIAC fall into domestic and international arbitration. Domestic arbitration shall be governed by HKIAC Domestic Arbitration Rules (current version is 1993), while international arbitration shall be governed by UNCITRAL Arbitration Rules.

 

Unless otherwise agreed by the parties, there shall be three arbitrators in an international arbitration tribunal, including two arbitrators appointed by the parties respectively and one chief arbitrator jointly elected by the two arbitrators appointed. HKIAC may serve as an authority to appoint arbitrators.

 

HKIAC owns a list of international arbitrators of different nationalities from all over the world.

 

The place of arbitration can be in or outside Hong Kong. If the parties do not agree on the place of arbitration, the arbitration tribunal shall make a decision. Unless the parties agree that there is no need to give reasons, the award shall state the reasons on which it is based. HKIAC can also settle disputes by conciliation or mediation.

  

 

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