华南国际经济贸易仲裁委员会（深圳国际仲裁院）

Recent Development of Arbitration In China June 26, 2014 Latvia Recent Development of Arbitration In China Ms. ZHOU Juan Arbitrator, Senior Case Manager Shenzhen Court of International Arbitration June 26, 2014 Latvia

Contents ◇ Legislation Legal framework of China arbitration Recent development ◇ Arbitration Institution Status quo of China arbitration institutions Recent development of China arbitration institutions: SCIA as an example

Legislation Framework ◎ Arbitration Act 1994 ◎ Civil Procedure Law ◎ Judicial Interpretation ◎ New York Convention ◎ ICSID Convention

Newly amended Civil Procedure Law effective as of Jan. 1, 2013 ◎ Property preservation before arbitration ◎ Evidence preservation before arbitration ◎ Malicious Arbitration ◎ Anti-litigation ◎ Nonappealable set-aside decision ◎ Unifying review tests for setting aside awards and refusing the enforcement of awards Recent development of Legislation

Arbitration Institution ◎ Status quo of China arbitration institutions ◎ Statistics 225 arbitration institutions 104,257 cases in billions RMB involved 98% +2%

Recent development of China arbitration institutions: SCIA as an example ◎ What is SCIA - History of SCIA Originated in 1983 Panel of Arbitrators (1984) Enforcement precedent in HK (1989) - Important role in modernizing and internationalizing China’s arbitration ADR innovations Parties from all more than 50 countries

SCIA: Thousands arbitration parties came from near 60 countries since 1983

Thousands mediation parties came from 97 countries

◎ Independence of arbitration body – Statutory-body legislation Non-governmental – Corporate governance structure Centered on the Council 9 out of 11 Council members: non-executive outsiders 4 Council members from outside jurisdictions Balance mechanisms in decision making, execution and supervision. Recent development of China arbitration institutions: SCIA as an example

◎ New Panel of Arbitrators Legislation: at least 1/3 from outside jurisdictions –At present: 37.7% (232 out of 616) from 42 outside jurisdictions –Europe 65 –Outsider arbitrators subject to approval of Chairman of the SCIA –Code of Ethics Recent development of China arbitration institutions: SCIA as an example

SCIA: Originations of foreign arbitrators

◎ New Arbitration Rules in 2012 Reflection of recent international arbitration practice － Unified approach for domestic and international arbitration － Single arbitration for multiple contracts － Consolidated arbitration － Joinder of additional parties － Interim measures Recent development of China arbitration institutions: SCIA as an example

◎ New Arbitration Rules in 2012 Modification of procedure management model － From institution-centered to tribunal-centered － Highlights the proceeding control of arbitrators and arbitration tribunal Recent development of China arbitration institutions: SCIA as an example

◎ New Arbitration Rules in 2012 Full respect for Party Autonomy –applicable laws –arbitration rules –formation of the tribunal –hearing process –rules of evidence –arbitration language –place of hearing –place of arbitration –other matters that do not conflict with mandatory laws Recent development of China arbitration institutions: SCIA as an example

◎ New Arbitration Rules in 2012 Openness in application of arbitration rules –May agree to modify some clauses of SCIA Rules –Apply other arbitration rules –Apply UNCITRAL Arbitration Rules SCIA: the appointing authority SCIA: relevant administrative functions Experiment of ad hoc arbitration –favorable for parties –more chances for foreign lawyers Recent development of China arbitration institutions: SCIA as an example

◎ New Arbitration Rules in 2012 Openness in languages of arbitration –Agreement of arbitration language –Without such agreement Chinese is not implied language Determined by tribunal, regard the language of –the arbitration agreement –or the contract concerned –and all other relevant circumstances Recent development of China arbitration institutions: SCIA as an example

◎ New Arbitration Rules in 2012 Openness in hearing procedure –Greater flexibility for parties and arbitrators Inquisitorial Adversarial other approach Recent development of China arbitration institutions: SCIA as an example

Recent development of China arbitration institutions: SCIA as an example ◎ New Arbitration Rules in 2012 Roles of foreign professionals Roles 1: Arbitrator Roles 2: Representative –Innovative Rules: a party may be represented by counsel from outside jurisdictions Role 3: Expert witness Role 4: Mediation expert –Innovative Rules: Independent mediation + Arbitration

Recent development of China arbitration institutions: SCIA as an example ◎ New Arbitration Rules in 2012 Openness in payment of arbitration fees –Fully considers the expenses for parties –Arbitration fee in installments not be less than 1/3 at the stage of applying for arbitration not less than 1/2 before the constitution of the arbitral tribunal full amount shall be paid before the hearing. –Application of UNCITRAL Arbitration Rules fee arrangements between the party or parties and the arbitrator

Mission, Vision and Core Values Mission SCIA is dedicated to assist parties to prevent and resolve international/domestic commercial disputes effectively, promote harmonious and safe international and domestic business orders, and improve internationalized commercial legal environment. Vision SCIA will be one of the global leaders in commercial dispute resolution, built on independence, impartiality and innovation. Core Values The SCIA’s mission statement and vision statement are based on three core values: independence, openness, and impartiality.

Independence Impartiality Innovation Website:

Any dispute arising from or in connection with this contract shall be submitted to South China International Economic and Trade Arbitration Commission for arbitration.Any dispute arising from or in connection with this contract shall be submitted to South China International Economic and Trade Arbitration Commission for arbitration. Any dispute arising from or in connection with this contract shall be submitted to Shenzhen Court of International Arbitration for arbitration.Any dispute arising from or in connection with this contract shall be submitted to Shenzhen Court of International Arbitration for arbitration. Model Arbitration Clause

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