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Clarify the rules for determining the nationality of arbitral awards

Clarify the rules for determining the nationality of arbitral awards, the awards made by foreign arbitral institutions in China shall be regarded as foreign-related Arbitral Awards

——Application for recognition and enforcement of foreign arbitral awards by Brandwood industries, Inc

[basic case]

Zhengqi company as the buyer and Brandwood company as the seller signed the contract and supplementary agreement in Guangzhou, Article 16 of the contract stipulates the dispute resolution method: “Any dispute arising from or in connection with this contract shall be settled by both parties through friendly negotiation. If no settlement can be reached through negotiation, it shall be submitted to the Arbitration Commission of the International Chamber of Commerce for arbitration in the project site in accordance with international practice. The award made by the Arbitration Commission is final and binding on both parties. Unless otherwise specified by the Arbitration Commission, the arbitration fee shall be borne by the losing party. The arbitration language shall be Chinese and English.” 。 The “project” mentioned in the arbitration clause refers to the “Guangzhou Liede Sewage Treatment Plant Phase IV Project” listed in Article 3 of the supplementary agreement, which is located in Guangzhou, China. Later, due to disputes arising from the performance of the contract, Brandwood applied to the Secretariat of the international arbitration court of the International Chamber of Commerce for arbitration. The court’s sole arbitrator made the final award in Guangzhou. Later, Brandwood applied to the Guangzhou intermediate people’s court for recognition and enforcement of the aforesaid arbitration award.

[judgment result]

After examination, the Guangzhou intermediate people’s court held that the award involved in the case was an arbitration award made by a foreign arbitration institution in the mainland of China and can be regarded as a foreign-related arbitration award in China. If the respondent fails to perform the award, Brandwood company may apply to the intermediate people’s Court of the respondent’s domicile or property location for enforcement in accordance with the provisions of the Civil Procedure Law on the enforcement of foreign-related arbitration awards. Brandwood applied for recognition and enforcement of the arbitral award in accordance with the New York Convention or the arrangement for the Mutual Enforcement of arbitral awards between the mainland and the Hong Kong Special Administrative Region. The legal basis was obviously wrong, so it ruled to terminate the review. Brandwood may file a separate application for enforcement in accordance with the law.

[typical meaning]

The case was reported to the Supreme People’s court for approval, which for the first time clarified the rules for determining the nationality of arbitration awards made by overseas arbitration institutions in the mainland of China, regarded such awards as China’s foreign-related arbitration awards, and confirmed that such awards can be directly applied for enforcement in the mainland of China, which is conducive to improving the internationalization level of China’s arbitration system and establishing the judicial image of “arbitration friendly”, It is a milestone for the opening of China’s arbitration business to the outside world and the international development of arbitration.

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