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Recognition and enforcement of foreign arbitration cases by Chinese courts in 2019

On December 23, the Supreme People’s Court issued the annual report on judicial review of arbitration in China (2019) (hereinafter referred to as the report). The report disclosed the recognition and enforcement of foreign arbitration cases by Chinese courts: 32 award cases involving 18 countries and regions were concluded throughout the year.

Arbitration is an internationally accepted way of dispute resolution. It is an important part of China’s diversified dispute resolution mechanism and social governance system. It is also one of the elements of China’s legalized, international and convenient business environment.

The international and domestic community is concerned about the recognition and enforcement of foreign arbitration cases by Chinese courts, Shen Hongyu, vice president of the four people’s Court of the Supreme People’s court, said. In 2019, the national courts correctly applied the New York Convention and concluded cases applying for recognition and enforcement of Foreign Arbitral Awards in accordance with the law.

According to the statistics of judgment, 32 cases of application for recognition and enforcement of foreign arbitral awards were concluded last year, and only one case was not recognized and enforced because it exceeded the scope agreed in the arbitration agreement; 20 decisions on recognition and enforcement; 6 cases in which the parties are allowed to withdraw their applications; One application rejected; 4 other cases involving objection to jurisdiction.

In terms of the geographical composition of the case, the parties came from 18 countries and regions such as South Korea, Singapore, Japan, Russia, Ukraine and the United States, of which 4 were both overseas parties. The arbitration institutions involved include the arbitration court of the International Chamber of Commerce, the Singapore International Arbitration Center, the Korean Commercial Arbitration Court, the Japan Commercial Arbitration Association, the arbitration court of the Stockholm Chamber of Commerce, the international sports arbitration court and other 9 international arbitration institutions. Among the 13 cases involving interim arbitration, 11 were arbitrated in London, England, one in Stockholm, Sweden and one in Switzerland.

In addition, during covid-19, the Supreme People’s court also issued the Guidance Opinions on Several Issues concerning properly hearing the new civil cases (three), and provided that the evidence and authorization could be postponed for the situation of epidemic or epidemic prevention and control measures. If a party is unable to apply for recognition and enforcement of a foreign arbitral award within the last six months of the limitation period, it may be deemed that the limitation of recognition and enforcement of the award is suspended.




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