Originally from Dispute Resolution in China - Second Edition

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I. Introduction

This Chapter discusses the law and reality of enforcement of arbitral awards in the PRC. It begins with a description of the regulatory framework, which has undergone rapid change in recent years. The Chapter then discusses the legal framework for the enforcement of arbitral awards from Hong Kong, Macau and Taiwan.  This is followed by a brief discussion of the problems and factors affecting enforcement, including statistics and a few recent non-enforcement cases approved by the Supreme People’s Court of China (“SPC”). And the following section is about a discussion on the issue of foreign arbitration institutions’ conducting arbitration in China based on several Chinese cases. The final part of the Chapter comprises some practical observations for investors.

II. Regulatory Framework

A. Types of Awards

Under the current PRC laws and regulations in relation to arbitration, there are three main types of arbitral awards: foreign, foreign-related and domestic. 

1. Foreign Awards

Foreign arbitral awards refer to any awards made outside of China.  Foreign awards include awards that are enforceable under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”)  and non-New York Convention awards.  From the PRC legal practice angle, non-Convention awards refer to foreign awards that are not enforceable under the New York Convention in China.