The New trends of China international arbitration in international trade dispute

Belt and Road Initiative (BRI) Impact: China’s Belt and Road Initiative, a massive infrastructure and economic development project spanning various countries, has led to an increase in international trade and investment activities involving Chinese parties. As a result, there has been a corresponding rise in arbitration cases related to BRI projects, and China has been promoting the use of its own arbitration institutions for resolving disputes arising from these projects.

Shanghai International Arbitration Center (SHIAC) and Beijing Arbitration Commission (BAC) on the Rise: SHIAC and BAC are two prominent arbitration institutions in China that have been gaining popularity for handling international trade disputes. They have been actively adapting their rules and procedures to align with international standards, offering bilingual services, and appointing arbitrators from diverse jurisdictions.

Increasing Use of Foreign Arbitrators: To enhance the perceived neutrality and international acceptance of Chinese arbitration, there has been a trend of appointing foreign arbitrators to arbitral panels, especially in high-stake and complex international trade disputes.

Digitalization and Technology Adoption: China has been embracing digital technologies in arbitration proceedings to improve efficiency and transparency. This includes using video conferencing for hearings, electronic document submission, and online case management systems.

Investor-State Dispute Settlement (ISDS) Mechanisms: With China’s increasing economic engagement with foreign countries, there has been a growing interest in investment arbitration under ISDS mechanisms. China has been signing bilateral investment treaties (BITs) and free trade agreements (FTAs) with various countries, providing a framework for resolving investment disputes through arbitration.

Promotion of Mediation and Conciliation: In addition to arbitration, there has been a push towards mediation and conciliation as alternative dispute resolution methods for international trade disputes. China is encouraging parties to consider these options before resorting to formal arbitration proceedings.

Recognition and Enforcement of Awards: China has taken steps to improve the enforcement of international arbitration awards. This includes implementing measures to streamline the enforcement process and ensure compliance with international obligations.

Public Awareness and Education: Efforts have been made to raise awareness about international arbitration and its benefits among Chinese businesses and investors involved in international trade. Education and training programs on arbitration have been conducted to enhance knowledge and understanding.

Author of the article: Kevin Liu of Shandong Win and Win Law FIRM