Solving international trade dispute by arbitration
Arbitration refers to a legal system in which the parties to civil dispute reach an agreement, voluntarily submit the dispute to a selected third party to make a ruling according to certain procedural rules and principles of fairness, and have the obligation to perform the ruling. Arbitration is a kind of private behavior, that is, private referee behavior, rather than national referee behavior. It is a way to solve civil (commercial) disputes together with reconciliation, mediation and litigation.
However, arbitration is subject to the supervision of the state according to law. The state can intervene in the validity of the arbitration agreement, the formulation of arbitration procedures and the execution of the arbitration award through the court, and in case of the involuntary execution of the parties, in accordance with the scope prescribed by the law of the jurisdiction. Therefore, arbitration is judicial and an important part of China’s judicial system.
It is generally believed that the advantage of the arbitration system is that the procedure is simple, and only one award is needed to take effect; The evidence requirements are not so rigid. For example, if there is a reasonable logical chain to explain, the copy can also become evidence, which is not allowed in the proceedings; The composition of arbitrators is characterized by scholar type, the discussion of issues is relatively thorough, and the atmosphere of arbitration is relatively loose; The most obvious advantage of arbitration is that in foreign-related arbitration, arbitral awards are generally applicable in all countries participating in international conventions. The disadvantage of arbitration is that it is not very procedural and the cost is high.
The China International Economic and Trade Arbitration Commission (CIETAC) is one of the major permanent arbitration institutions in the world.
Formerly known as the Foreign Trade Arbitration Commission, CIETAC was set up in April 1956 under the China Council for the Promotion of International Trade (CCPIT) in accordance with the Decision Concerning the Establishment of A Foreign Trade Arbitration Commission Within the China Council For the Promotion of International Trade adopted on May 6, 1954 at the 215th session of the Government Administration Council. To meet the needs of China’s ever-developing economic and trade relations with foreign countries after the adoption of the “reform and opening-up” policy, the Foreign Trade arbitration was first renamed as Foreign Economic and Trade Arbitration Commission in 1980 pursuant to the State Council’s Notice Concerning the Conversion of the Foreign Trade Arbitration Commission Into the Foreign Economic and Trade Arbitration Commission, and then as the China International Economic and Trade Arbitration Commission in 1988 pursuant to the State Council’s Official Reply Concerning the Renaming of the Arbitration Commission as the China International Economic and Trade Arbitration Commission and Amendment of Its Arbitration Rules. Since 2000, CIETAC is also known as the Arbitration Court of the China Chamber of International Commerce (CCOIC).
Headquartered in Beijing, CIETAC has South China Sub-Commission in Shenzhen, Shanghai Sub-Commission, Tianjin International Economic and Financial Arbitration Center (Tianjin Sub-Commission), Southwest Sub-Commission in Chongqing, Zhejiang Sub-Commission in Hangzhou, Hubei Sub-Commission in Wuhan, Fujian Sub-Commission in Fuzhou, Silk Road Arbitration Center in Xi’an, Jiangsu Arbitration Center in Nanjing, Sichuan Sub-Commission in Chengdu, Shandong Sub-Commission in Jinan, Hainan Arbitration Center in Haikou and Xiong’an Sub-Commission in Xiong’an. CIETAC set up its Hong Kong Arbitration Center in September 2012. In July 2018, The North American Arbitration Center was established in Vancouver, Canada . In September 2018, The European Arbitration Center was established in Vienna, Austria.
