Prof. GAO yongfu Shanghai University of International Business and Economics May 16-17, 2013

Ways of Business Dispute Settlements Negotiation Mediation Arbitration Litigation Investment Dispute Settlement Dispute Settlement in WTO

This is the best way to settle the disputes between the parties. It can friendlily, peacefully, voluntarily, secretly, positively and economically settle the disputes between the parties. no result possible

Traditional way of dispute settlements in China is the mediation It has almost the same characteristics in comparison with the negotiation Binding force of the mediation Mediation in judicial litigation and arbitration

1 、 Historical development of arbitration in China 2 、 Arbitration Law in China 3 、 Arbitration bodies in China 4 、 CIETAC (China International Economic and Trade Arbitration Commission) rules

The new way of the dispute settlement in China Arbitration used in international trade Arbitration used in the different fields Arbitration Law in 1995

Arbitration Law of the PRC was adopted at the 8 th Session of the Standing Committee of the 8 th National People’s Congress and Promulgated on August 31, 1994 and effective as of the 1 st Sept., 1995 It has 8 chapters and 80 articles, General provisions, Arbitration Commissions and Arbitration Agreement, Arbitration Procedure and etc.

Arbitration commissions may be established in the municipalities directly under the Central Government, in the municipalities where the people’s governments of provinces and autonomous regions are located or, if necessary, in other cities divided into districts. Foreign arbitration institution (CIETAC)

This is the latest rules which revised and adopted by the China Council for the Promotion of International Trade/China Chamber of Commerce on Feb Effective as of May 1, 2012 Arbitration agreement Arbitrator and arbitration court Arbitration procedures

Any dispute arising from or in connection with this Contract shall be submitted to CIETAC for arbitration which shall be conducted in accordance with the CIETAC’s arbitration rules in effect at the time of applying for arbitration. The arbitral award is final and binding upon both parties.

Civil Procedure Law of the PRC People’s court in China Mediation in the court proceedings The Jurisdiction

It was first adopted at the 4 th Session of the Seventh National People’s Congress on April 9, 1991 and amended twice at October 28,2007 and August 31, 2012 respectively. It has all together 27 chapters and 268 articles

Four levels of people’s courts: The basic people’s court The intermediate people’s court The higher people’s court The Supreme People’s Court

In handling civil case, the people’s court may distinguish between right and wrong and mediate disputes according to the principle of parties’ voluntariness and based on clear fact. The mediation usually takes place before the end of trial

Four kinds of jurisdictions 1. Jurisdiction by Levels of Courts An intermediate people’s court shall have jurisdiction as courts of first instance over the following civil cases: (1) Major cases involving foreign elements; 2. Territorial Jurisdiction a civil lawsuit brought against a citizen shall be under the jurisdiction of the people’s court located in the place where the defendant has his domicile. 3. Jurisdiction by transfer 4. Jurisdiction by Designation

China is a member of the Convention on the Settlement of Investment Dispute between State and Nationals of Other States International Centre for Settlement of Investment Disputes(ICSID) Arbitration agreement

China became a member of the WTO in 2001 DSU rules in WTO China is one of the active participants in the WTO Dispute Settlement Body Sino—US dispute settlements in WTO

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