Originally from Business Disputes In China - 3rd Edition

The last quarter century witnessed China International Economic and Trade Arbitration Commission (CIETAC) growing into one of the leading international arbitration institutions in the world. The growth is obviously a result of China’s economic boom, but at the same time, it is in a large measure attributable to the efforts of the experts and staff of CIETAC, who have been endeavoring to modernize the arbitration system in China and CIETAC’s own arbitral procedure.

In an effort to keep abreast of international developments and standards in the arbitration world, as well as to meet the needs of the business and legal communities, CIETAC frequently updates its procedural rules, and continually consults with experts both in China and overseas while taking these steps. The latest Rules (hereinafter “Rules 2005”), in force since May 1, 2005, contain a striking number of new changes and innovations to CIETAC’s arbitral procedure.

The overall objective of this brochure is to offer current and potential users of CIETAC arbitration a glimpse at the landscape of CIETAC arbitration. However, there is no way to achieve in-depth discussions of every issue in the confines of these few pages. So, it presents the “forest” instead of the “trees” and therefore must be used with a clear understanding of its limitations. Yet the authors wish to provide a solid framework to which the elaborations and refinements of every specific issue can be attached. Readers interested in knowing more about a specific issue should consult with an expert.

Recently we have observed an increasing use of arbitration clauses referring to arbitration by CIETAC in a foreign jurisdiction, such as Hong Kong, Singapore and others, which requires that CIETAC administer a case and the tribunal conduct the proceedings under the procedural law other than that of the mainland China.