What is the development of commercial arbitration and mediation in China?New Release!

Mondo Digital Updated on 2024-01-29

On the afternoon of December 12, the Beijing Arbitration Commission and the Beijing International Arbitration Center (hereinafter referred to as the BAC) held a press conference on the annual observation of China's commercial arbitration and mediation (2023). Guo Wei, Director of the BAC, delivered a speech, and Jiang Lili, Secretary General of the BAC, presided over the meeting. Nearly 100 people from all walks of life participated in the offline press conference, and the number of online people reached 190,000 people.

From 2013 to 2023, the BAC has always been publishing the annual observation report on China's commercial dispute resolution every year, and held summit forums in 13 overseas cities to vigorously publicize the process and development of China's rule of law construction, and enhance the international community's understanding and understanding of the development of China's substantive law and commercial dispute resolution. The observation reports over the years have provided rich and valuable information for a comprehensive study of the development of China's commercial dispute resolution.

China Commercial Arbitration Annual Observation (2023) released.

Shi Hong, a member of the BAC and partner of Fangda Partners, released the Annual Observation of Commercial Arbitration in China (2023) on the spot, giving a detailed introduction to the development of commercial arbitration in China in 2022

Arbitration-related legislation continued to advance, and the construction of the arbitration system was gradually improved.

In April 2022, the Standing Committee of the National People's Congress (NPC) included the revision of the Arbitration Law of the People's Republic of China as an item for annual legislative review. The China Arbitration Association was established with the expected functions of formulating arbitration industry norms and strengthening the supervision of practitioners. The Arrangement between the Mainland and the Macao Special Administrative Region on Mutual Assistance in Interim Measures in Arbitral Proceedings came into force, and the successful practice of "one country, two systems" has brought about new developments in the judicial field. The Supreme People's Court has promulgated a series of judicial interpretations, guiding opinions and typical cases to strengthen judicial safeguards for arbitration, uphold the principle of judicial modesty, and create a favorable judicial atmosphere for the rapid development of arbitration. After the revision of the Sports Law of the People's Republic of China, a special chapter on sports arbitration was added, and the General Administration of Sport of China issued the Organizational Rules of the China Sports Arbitration Commission and the Sports Arbitration Rules.

Arbitration institutions continue to enhance the ability of arbitration to serve the country's economic development and comprehensive openness.

A number of arbitration institutions have improved online arbitration rules and made extensive use of new technologies such as Internet information transmission, blockchain, and cloud storage to improve the efficiency of case hearing. The second batch of arbitration institutions were included in the Supreme People's Court's "one-stop" diversified international commercial dispute resolution mechanism. A number of arbitration institutions have strengthened international cooperation, such as the Shenzhen Court of International Arbitration and the Singapore International Mediation Center (SIMC) to create a new cooperation model, which has ushered in a new situation of integrated development and mutual support between domestic and international arbitration in China.

*New developments have been made in judicial review cases such as the arbitrability of misrepresentation disputes and the validity of arbitration agreements.

*Arbitration resolution of misrepresentation disputes is in line with the general trend, but it is still necessary to determine whether the relevant dispute should be submitted to arbitration after specifically determining whether there is an arbitration agreement in the relevant case. In the absence of a clear agreement on the method of modification of the dispute resolution clause, the unilateral change of the dispute resolution clause of the standard contract by the provider of the standard contract by way of a general agreement shall not be effective against the other party. On the basis of respecting the parties' willingness to arbitrate and promoting the validity of the arbitration agreement, the clerical error in the arbitration clause does not affect the determination of the only selected arbitration institution, and the arbitration clause is valid.

Hot issues such as third-party funding of arbitration and the impact of international sanctions on international arbitration practice have attracted attention.

The third-party funding system has been widely accepted in the international community, and some judicial practices in China show that the existence of third-party funding does not represent a violation of the principle of confidentiality in arbitration, and does not naturally constitute a cause for revocation, but there is also a discussion on whether it violates public order and good customs, and there is still a need for clear legal guidance and a more unified adjudication standard. On the one hand, international sanctions may cause disputes in the international economic and advanced fields, and on the other hand, they will also have an impact on the procedures, substantive hearings and enforcement of awards in international arbitration.

Professor Song Lianbin of the Law School of China University of Political Science and Law, Yao Shuo, Deputy General Counsel of Sinochem Holdings Co., Ltd., and Ye Wanhe, Managing Partner of Beijing Cai'an Law Firm, served as commentators to discuss the Annual Observation of Commercial Arbitration in China (2023) and the development of commercial arbitration in China.

From a theoretical point of view, Song Lianbin proposed that the right to a fair hearing should be given priority in judging whether third-party funding violates confidentiality, and mentioned that the impact analysis of international sanctions should consider the connection between sanctions and disputes and weigh the regulatory benefits. Yao Shuo first expressed that the construction and development of foreign-related rule of law in China will help improve the internationalization level of arbitration institutions and enhance the ability of enterprises to deal with foreign-related legal disputesSecondly, the details of the third-party funding system need to be clearly regulated by laws and regulations. Ye Wanhe commented on the limited impact of third-party funding on the resolution of cost pressures, the promotion of the arbitration industry by arbitration associations and its supervision scale, and the prudent assessment of the scope of the impact of sanctions.

The 11th "BAC Cup".

Awarded in the National University Arbitration Essay Competition.

After the press conference of the Annual Observation of China Commercial Arbitration (2023), the BAC held the award ceremony of the 11th "BAC Cup" National University Arbitration Essay Competition, at which Guo Wei read out the list of winners and presented the awards to the representatives of the winners. The winners spoke on behalf of Liu Changwan and Zhang Shichao.

Signing ceremony.

The BAC and the Blue Ocean Legal Identification and Commercial Mediation Center held a signing ceremony, and the two sides signed a cooperation agreement on the realization of legal services, legal exchanges, and transformation of research results.

The Annual Observation on Commercial Mediation in China (2023) was released.

Zhao Fang, a partner of Shanghai Yunzheng Law Firm, released the Annual Observation of Commercial Mediation in China (2023). Zhao Fang first briefly introduced the concept of commercial mediation, and summarized the latest development of commercial mediation in China from the perspectives of commercial mediation organization development, case situation, one-stop diversified dispute resolution mechanism and related judicial policy support. After analyzing typical cases in the field of commercial mediation, Zhao Fang commented on the hot and difficult issues in the application of the Singapore Mediation Convention in China and looked forward to the future of commercial mediation.

Jiang Jinlian, senior judge of the Beijing Financial Court, Li Zhuoying, vice chairman of the Blue Ocean Legal Identification and Commercial Mediation Center, and Wang Fang, deputy secretary general of the Mediation Center of the China Council for the Promotion of International Trade, spoke as commentators.

Based on the practical experience of the people's courts in conducting multi-mediation, Jiang Jinlian shared her views on the importance of commercial mediation and how commercial mediation can develop benignly. Starting from the relationship between mediation, arbitration and litigation, Li Zhuoying analyzed the development of commercial mediation organizations, dispute resolution methods and supporting system support based on the cases in the annual observation report of mediation. Combined with the content of the recent Politburo meeting and the National Mediation Work Conference, Wang Fang proposed that the development of commercial mediation is not only conducive to the construction of foreign-related rule of law and the improvement of the business environment, but also conducive to the effective resolution of conflicts and disputes in industries and professional fields.

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