2017 | Junio 7
When non-Chinese parties conduct business in China, or with a Chinese party, several factors must be considered when crafting an arbitration clause to ensure it is enforceable and provides for an effective form of dispute resolution.
Of China’s 200-plus arbitration institutions, the China International Economic and Trade Arbitration Commission (CIETAC) is the most commonly used by foreign parties. However, CIETAC proceedings are typically more inquisitorial in approach than adversarial. For simpler, shorter-term contracts or contracts involving smaller amounts of money, CIETAC may be preferred for its fast-tracked and economical approach. For more complicated, higher-stakes, or longer-term contracts, offshore arbitration is generally preferable as it allows a foreign party the time it wishes to have before the tribunal, which is generally needed to make detailed legal submissions, and to test the evidence of the other party’s fact witnesses and experts.