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Economic conditions

China's Arbitration Commission to Enhance Industry-Based Services for Foreign and Local Companies

Strategic Insights

— 1 min read

China's largest arbitration institution, the China International Economic and Trade Arbitration Commission (CIETAC), is planning to step up efforts to provide specialized services for specific industries and the online sector. This move is aimed at creating a favorable business environment for both foreign and local companies. The commission will establish special arbitration centers for industries such as construction, real estate, and finance, and is working on drafting special arbitration rules and drawing in specialists from these sectors. Meanwhile, CIETAC will also partner with e-commerce websites like eBay to provide online arbitration services to online traders.

Key Takeaways:

  • CIETAC will establish special arbitration centers for industries such as construction, real estate, and finance, with the first one to be launched this year.
  • The commission will set up specialized arbitration rules and draw in specialists from these sectors to handle industry-specific disputes.
  • CIETAC will team up with e-commerce websites like eBay to provide online arbitration services to online traders.
  • The commission will offer e-arbitration services, which are both efficient and cheap, as a developing market in China.
  • Wang Shengchang, CIETAC's vice-chairman, believes that CIETAC will be the front-runner in the e-arbitration market in China.
  • The recent enactment of the e-signature law will create a favorable legal framework for e-arbitration in China.
  • CIETAC revised its arbitration rules in 2004 to make them more in line with international practices and current economic development.
  • The commission has a special panel comprising senior arbitrators to oversee every judgment before it is officially signed and made binding.
  • Wang Shengchang hopes that the revision of CIETAC's arbitration rules will influence China's Arbitration Law, which is scheduled to be amended before 2008.
  • The main hurdles to the development of China's arbitration sector are the weak legal awareness of Chinese companies and excessive administrative interference.
  • Wang Shengchang emphasizes the importance of arbitration in solving commercial disputes due to its procedural flexibility, respect for parties' autonomy, efficient enforcement of final awards, and confidentiality.

Statistics:

  • CIETAC dealt with 850 cases totaling $1 billion in 2004, a 20% increase from 2003's 709 cases.
  • CIETAC is the world's largest arbitration body in terms of the number of cases handled.
  • The commission revised its arbitration rules for the seventh time since its establishment in 1956.
  • CIETAC has a special panel comprising senior arbitrators to oversee every judgment.

Sources:

  • Xinhua News Agency (2005)
  • CIETAC Website (retrieved on February 28, 2005)

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