Acknowledgements

xiii

About the Author

xv

Preface

xvii

List of Abbreviations

xxi

ch. I

History of Arbitration in China

1

I.

Introduction

1

II.

Domestic Arbitration

2

A.

Pre-Arbitration Law

2

1.

Lack of Independence

4

2.

Lack of Party Autonomy

4

3.

Arbitral Awards without Binding Force

4

B.

Post-Arbitration Law

4

1.

Free-Establishment of Arbitration Commissions

5

2.

Full Independence of Arbitration Commissions

6

3.

Expanded Scope of Arbitral Subject Matter

7

4.

Finality of the Arbitral Award

7

5.

Establishing Jurisdiction via the Arbitration Agreement

8

III.

Foreign-related Arbitration

8

A.

Development of Foreign-Related Arbitration

8

B.

Arbitration and Chinese Legislative Developments since 1978

12

C.

China's Accession to International Conventions

14

D.

Bilateral Investment Treaties

15

E.

The Support of the Supreme People's Court

18

IV.

CIETAC and CMAC: the International Arbitration Institutions of the PRC

22

A.

Historical Development of CIETAC and CMAC

22

B.

Jurisdictional Development of the CIETAC

24

1.

FTAC Arbitration Rules (1956)

24

2.

CIETAC Arbitration Rules (1988)

25

3.

CIETAC Rules (1994)

25

4.

CIETAC Rules (1995)

29

5.

CIETAC Rules (1998)

29

6.

CIETAC Rules (2000)

31

7.

CIETAC Rules (2005)

31

8.

CIETAC Rules (2012)83

33

9.

CIETAC Financial Arbitration Rules (2003/2005)

36

A.

Scope of Application

37

B.

Time Limits

37

C.

Panel of Financial Arbitrators

37

D.

Increased Flexibility

38

E.

Nondiscriminatory Cost Schedule

38

C.

CIETAC: Foreign-Related Caseload 1990-2010

39

V.

The CAA

41

1.

Necessity of Establishment

42

2.

Legal Status and Character

42

3.

Duties and Functions

43

VI.

Relationship Between Arbitration and the Courts

44

ch. II

Arbitration Agreement

47

I.

Introduction

47

II.

Form of the Arbitration Agreement

48

A.

Written Form Requirement of the Arbitration Agreement

48

B.

Types of Arbitration Agreements

49

1.

Arbitration Clause or Independent Arbitration Agreement

49

2.

Submission Agreement

49

3.

Incorporation by Reference

50

III.

Substantive Requirements of the Arbitration Agreement

51

A.

Capacity Requirement

51

1.

General Capacity Requirement of the Parties

51

2.

Corporations

52

A.

Group Companies

52

B.

Mergers and Acquisitions

54

C.

Contract Assignment

56

3.

Capacity in the Context of Agency

58

A.

Invalid Arbitration Agreement signed by an Agent

58

B.

Different Types of Agency and the Binding Effect of an Arbitration Agreement on the Principal

60

B.

Substantive Requirements Provided Directly by the Law

64

1.

Expression of the Parties' Intention to Arbitrate

64

A.

True Expression

65

B.

Clear Expression

65

C.

Arbitrable Disputes

66

1.

Non-arbitrable Disputes as Specified by Law

66

A.

Administrative Disputes

66

B.

Disputes concerning Personal Rights

69

C.

Labour Disputes/Agricultural Projects

69

2.

Scope of Arbitrable Disputes

70

D.

Determining the Arbitration Commission Selected by the Parties

71

1.

Selecting Two Arbitration Commissions

72

2.

Arbitration Institution Incorrectly Recorded

73

A.

Incorrect Name

73

B.

Outdated Name

73

3.

Selection of the Place of Arbitration

74

E.

Ad hoc Arbitration

76

IV.

Determining Validity

78

A.

Validity Considered on Two Separate Occasions

79

B.

The Prior-Reporting System

80

C.

Supreme People's Court and the Issue of Determining Invalidity

80

D.

Criteria for Setting Aside an Award

81

V.

The Severability Doctrine

82

A.

The Application of the Severability Doctrine in China

82

B.

Effect of an Invalid Contract on an Arbitration Agreement

85

VI.

Termination and Waiver of Arbitration Agreement

86

VII.

Recommended Arbitration Clauses

87

A.

CIETAC and BAC Recommended Arbitration Clauses

87

B.

Ancillary Provisions to Arbitration Agreement

88

1.

Place of Arbitration

89

2.

Language of Arbitration

90

3.

Arbitration Rules

91

4.

Nationality of Arbitrators

92

5.

Applicable Law Requirements

92

6.

Appointment of Arbitrators

93

ch. III

Court and Arbitral Jurisdiction

95

I.

Differences Between Court and Arbitral Jurisdiction

95

II.

Challenging Jurisdiction Prior to the Commencement of the Arbitration Procedure

96

III.

Challenging Jurisdiction During the Arbitration Procedure

97

IV.

Jurisdiction of CIETAC

99

V.

Jurisdiction of CMAC

103

VI.

Jurisdiction of Domestic Arbitration Commissions

104

ch. IV

Applicable Law

107

I.

Introduction

107

II.

The Law Governing the Arbitration: The Lex Arbitri

108

A.

Lex Arbitri

108

B.

The Role of the Place Where the Award Is Rendered

109

III.

The Law Applicable to the Substance

111

A.

Limited Party Autonomy

111

B.

Conflict of Law Rules and the Applicable Law Thereunder

112

C.

The Law Ex Aequo et Bono

114

ch. V

Arbitration Procedure

117

I.

Domestic Arbitration, Foreign-related Arbitration and Foreign Arbitration

117

II.

Domestic Arbitration Procedure

118

A.

Arbitrators and the Arbitral Tribunal

118

1.

Appointment to the Panels of Arbitrators in Domestic Arbitration

118

2.

Formation of the Arbitral Tribunal

120

B.

The Place of Arbitration

121

C.

Cost Schedules

122

D.

Preservation Measures

126

1.

Preservation of Evidence

126

2.

Property Preservation Measures and Advanced Execution

127

3.

No Further Preservation Measures

128

III.

Foreign-Related Arbitration Procedure

129

A.

Arbitrators and the Arbitral Tribunal

129

1.

Appointment to the CIETAC Panel of Arbitrators

129

2.

Notification to the Parties

132

3.

Tribunal Formation

133

4.

Choice of Arbitral Rules and Party Autonomy

136

B.

The Place of Arbitration

137

C.

Language of the Arbitration

137

D.

Cost Schedules: CIETAC, CMAC and BAC

138

1.

CIETAC Fee Schedule for Foreign-related Arbitration Cases

138

2.

CMAC Handling Fees Schedule

140

3.

BAC Fees Schedule for Foreign-related Arbitration Cases

141

4.

Comparison of Fee Schedules of CIETAC and BAC with ICC and HKIAC

141

E.

Preservation Measures

142

IV.

General Principles of Procedure for Arbitration in China

142

A.

Application and Acceptance

142

1.

Prerequisites in Applying for Arbitration in China

142

2.

Application for Arbitration and Acceptance

143

B.

Challenging Arbitrators and the withdrawal of Arbitrators

144

C.

Arbitral Hearing

147

D.

Evidence

148

1.

The Collection and Presentation of Evidence

148

2.

Cross-Examination

149

3.

Examination and Identification of Evidence

151

E.

The Combination of Conciliation and Arbitration

153

1.

Introduction

153

2.

Court Conciliation

154

3.

Institutional Conciliation

155

4.

Conciliation within the Arbitration Process

157

F.

Rendering the Arbitral Award

162

1.

Time Limit and Content of Arbitral Award

162

2.

Correction and Supplement to the Arbitral Award

165

G.

Summary Proceedings

166

H.

Statutory Limitation Periods

166

I.

Confidentiality of the Arbitration Hearing

167

ch. VI

Enforcement of Arbitral Awards in China

169

I.

Legal Basis for the Enforcement of Arbitral Awards

170

A.

Legal Basis for the Enforcement of Domestic Arbitral Awards

170

B.

Legal Basis for the Enforcement of Foreign-Related Arbitral Awards

171

C.

Legal Basis for the Enforcement of Foreign Arbitral Award

174

1.

Legislation Prior to China's Accession to the New York Convention

174

2.

Accession to the New York Convention

175

II.

The Enforcement Of Arbitral Awards In China

175

A.

Time Limit for Initiation and Determination of Enforcement Proceedings

176

B.

Challenging an Arbitral Award

178

C.

Enforcement of Domestic Arbitral Awards in China

195

1.

Jurisdiction over Enforcement

195

2.

Article 215 of the Civil Procedure Law

195

3.

China's Experience in the Enforcement of Domestic Arbitral Awards

197

D.

Enforcement of Foreign-Related Arbitral Awards

200

1.

Article 258 of the Civil Procedure Law

200

2.

The Prior Reporting System: Enforcement

203

3.

The Prior Reporting System: Challenge

204

4.

The Prior Reporting System: Scope of Application

205

5.

Enforcement Following Removal of Arbitrator from Panel of Arbitrators

205

6.

Domestic Institutions and Foreign-Related Arbitral Awards

206

7.

Applicable Laws to the Validity of Arbitration Agreements

206

8.

China's Experience in the Enforcement of Foreign-Related Arbitral Awards

207

E.

Recognition and Enforcement of Foreign Arbitral Awards

218

1.

Implementation of New York Convention in China

218

A.

Two Reservations

219

B.

Non-Enforcement on Grounds of Public Policy

219

C.

The Application Documents

220

2.

Comparative Analysis of the Grounds for Non-enforcement under the Civil Procedure Law and the New York Convention

220

3.

China's Experience in the Enforcement of Foreign Arbitral Awards

223

F.

Special Issues on the Enforcement of Hong Kong Arbitral Awards

230

1.

Mutual Enforcement Arrangement: Main Contents

231

2.

Competent Court and Venue

232

3.

Application Documents

232

4.

Time Limit and Procedures

232

5.

Refusing Recognition and Enforcement

232

G.

Special Issues on the Enforcement of Macao Arbitral Awards

235

1.

Main Contents

236

2.

Competent Courts

236

3.

Suspension, Termination and Resumption of Enforcement

237

4.

Exemption of Document Authentication Procedure

237

H.

Special Issues on the Enforcement of Taiwanese Arbitral Awards

237

1.

Competent Court and Venue

238

2.

Application Documents

238

3.

Interim Measures

238

4.

Time Limits

239

5.

Refusal to Enforce

239

III.

Several Issues Concerning Non-Enforcement

240

A.

Partial Enforcement

240

B.

Partial Cancellation of an Arbitral Award

241

ch. VII

Developments in Domain Name Disputes

243

I.

Disputes Relating to Domain Names

243

A.

Introduction

243

B.

Solution Centre for the Resolution of Domain Names Disputes

244

C.

The ADNDRC

245

II.

Online Arbitration

248

A.

Electronic Arbitration Agreements and the Writing Requirement of the New York Convention

249

B.

Conducting Electronic Arbitration

250

C.

The Enforcement of Arbitral Awards Issued in Online Proceedings

251

Appendix A

Arbitration Law of the People's Republic of China

253

Appendix B

CIETAC Arbitration Rules (2012)

267

Appendix C

BAC Arbitration Rules (2007)

295

Appendix D

China International Economic and Trade Arbitration Commission (CIETAC) Ethical Rules for Arbitrators

317

Appendix E

Notice of the Supreme People's Court on Certain Issues Relating to the Revocation by the People's Courts of Foreign-related Arbitration Awards (`Notice on Prior Reporting System 1998')

319

Appendix F

Supreme People's Court: Notice on Certain Questions concerning the Implementation of the Arbitration Law of People's Republic of China

321

Appendix G

Regulation of the Supreme People's Court regarding the problems of collecting fees and time limits for review of recognition and enforcement of foreign arbitral awards of 1998 & Provisions of the Supreme People's Court on Some Time limits For Handling Enforcement Cases of 2006

323

Appendix H

Supreme People's Court Reply to Certain Issues Pertaining to the Hearing of a Motion for the Revocation of an Arbitration Award

327

Appendix I

Supreme People's Court's Interpretations of Certain Issues Concerning the Application of the Arbitration Law of the People's Republic of China (September 8, 2006)

329

Appendix J

Notice of the Supreme People's Court Regarding the Implementation of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards Acceded to by China (`New York Convention Implementation Notice')

335

Appendix K

Letter of Reply of the Supreme People's Court to Handling a Case Where a Party to the Contract in Which an Arbitration Clause Was Stipulated in Fails to Appear in Court

341

Appendix L

Notice of the Supreme People's Court on Relevant Issues Regarding Enforcement of Hong Kong SAR Arbitral Awards in Mainland

343

Bibliography

345

Table of Cases

351

Table of Laws and Regulations

359

Index

373