This piece wishes to provide the reader with a general overview of the practice of
arbitration in China from the perspective of a foreign business operator. It was
drafted keeping in mind the possibility that the foreign business operator is present
in China either directly, or through a company incorporated and existing under the
laws of China.
Aside from the option of submitting disputes to arbitration administered by
Chinese institutions, the (rather problematic) option of having arbitration conducted
in China under the rules of a foreign arbitration institution, or having arbitration
carried out without relying on any institution, will also be examined. Proceedings at
non-Chinese arbitration institutions, as well as the recognition and enforcement
abroad of arbitral awards rendered in China are not covered in this short guide.
This piece is not meant to thoroughly deal with every issue that might arise when
arbitrating in China; rather, care was taken to cover the most important issues. This
guide addresses both the practical needs of business operators as well as provides
more technical insights for foreign legal counsel evaluating arbitration in China.
The order of topics in Chaps. 1–6 reflects, as closely as possible, the normal
sequence of events in an arbitration. After an Introduction dedicated to general
definitions and issues, the following chapter deals with the drafting of the arbitration
agreement touching on the main issues that a business operator and his legal
counsel should keep in mind at this stage. The chapter on Jurisdiction explores the
problems that may arise when a party to the arbitration agreement, disregarding said
agreement, applies to Chinese courts for a ruling. An overview of procedural rules
governing arbitration at the main Chinese arbitral institutions is provided. Finally, a
chapter on Recognition and Enforcement deals with the problems related to the
setting aside of an arbitral award rendered in China, as well as with the enforcement
procedure to be followed in the event the losing party does not voluntarily comply
with the award. Chapters 7 and 8 respectively address sample arbitration proceedings
and the most common questions regarding arbitration in China.