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Arbitration sector to play greater role


2004-05-18
China Daily

China's fast-growing economy and increasing integration into the global market are prompting the need for the arbitration sector to play a greater role, said Ren Jianxin, honorary deputy director of the China International Economic and Trade Arbitration Commission (CIETAC).

"China's entry into the World Trade Organization (WTO) means more and closer connections with the world as well as wider co-operation. As an unavoidable result, more economic and trade disputes will appear, which provides spacious room for CIETAC to develop," he said.

In an interview with ICCA Express, Ren noted that arbitration is an efficient way to settle commercial disputes, which has become acknowledged in the international economic and trade community.

But for CIETAC, great development opportunities come with more challenges and higher requirements.

"It is impossible for CIETAC to avoid competition in the international market," Ren said. "Arbitration should keep pace with new situations, march concurrently with time, make constant innovations, summarize experiences and study new problems so as to provide high-quality and reliable services to promote the healthy development of the Chinese economy and trade."

He noted that although competition is tough, CIETAC still has advantages in the market.

First of all, CIETAC is an international arbitration institution with a wealth of experience, rules and practices which are in line with the international standards.

It also boasts of a team of internationally famous arbitrators, and long-term friendly relationships and close co-operation with international arbitration institutions, according to Ren.

Its fair awards and enforcement have gained much trust from concerned parties in dispute.

CIETAC has been advocating "the combination of arbitration with conciliation," which has also aroused the attention of world arbitration circles.

This combination comes from CIETAC's practices in the 1950s. Its significance is to bestow on the parties initiatives to settle disputes with the help of arbitrators.

According to articles 45 to 50 of Arbitration Rules, arbitrators can perform the conciliator's function when requested or it is agreed upon by parties. Such a method has proven to be an effective one in solving disputes.

The 17th International Council for Commercial Arbitration (ICCA) Conference opened yesterday in Beijing, and will discuss "Chinese arbitration and conciliation" today.

Second, CIETAC's arbitration work has never been interfered in by outside forces and local protectionism, which ensures the fairness of its arbitration awards and enforcement.

Third, CIETAC has been attaching great importance to improving its international competitiveness as the market demands high-quality arbitration services, including high-efficiency procedures and implementation.

Fourth, it has constantly created new products for the market and promoted professional arbitration. For example, CIETAC has been taking complementary advantage of chambers of commerce and sub-councils. It also hires experts in arbitration. All of these practices have been warmly received by clients.

Ren also noted that it is necessary for the government to develop matching management modes and supportive policies to increase the competitiveness of domestic arbitration institutions in the international market.

Proposed by the China Council for the Promotion of International Trade and approved by the Chinese Government, CIETAC was set up in 1956 in Beijing. It was then the only arbitration institution settling foreign commercial disputes.

Ren said the central government's decision to set up the nation's own arbitration commission was "farsighted and wise."

In the past 50 years, CIETAC has been putting an emphasis on settling disputes according to the principles of independence, impartiality and mutual benefit and international practices.

When dealing with a case, it abides by laws and pays attention to agreements as well as international practices.

CIETAC has a group of senior arbitrators and attaches great attention to team construction.

It has employed senior impartial arbitrators in fields such as law, economics and trade, and science and technology.

To maintain impartiality, it has also established a strict supervision system.

Meanwhile, CIETAC has adjusted arbitration rules and procedures to meet market demands.

"Such practices have helped CIETAC to win a good reputation in the world," Ren said.

In addition, CIETAC is playing an important role in improving China's investment climate and protecting concerned parties' legal rights in foreign-related commercial disputes.

The wave of foreign investors coming into China has unavoidably brought with it more disputes. Both the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, issued in 1979, and the Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures, issued in 1988, encourage foreign companies to submit cases to CIETAC when in dispute with local companies.

For many years, when any disputes occurred, many foreign and domestic companies would apply for arbitration at CIETAC. The rising number of cases accepted by CIETAC is an evidence of the trend.

Take the year 1995 as an example. There were 902 foreign-related cases. In the recent decade, about 200 cases related to foreign investment were submitted to CIETAC arbitration each year.

CIETAC has also made new arbitration rules regarding new sectors such as finance and domain name disputes.

As China has joined the WTO, its finance and insurance markets have been gradually opened further.

According to China's commitments when joining in the WTO at the end of 2001, the nation opened four cities Shanghai, Shenzhen, Tianjin and Dalian to foreign banks. On December 1, the following year, China opened another five cities of Guangzhou, Zhuhai, Qingdao, Nanjing and Wuhan.

By the end of 2006, the banking industry will be open to foreign banks without any geographic or business restrictions.

In light of such a situation, CIETAC has issued Arbitration Rules for Financial Disputes, providing a convenient way to handle disputes in this area.

Meanwhile, it has taken measures to protect international intellectual property rights by setting up the Domain Name Dispute Resolution Centre to protect domain names, according to international agreements and laws.

Ren said ICCA's selection of Beijing for its 17th conference suggests that CIETAC enjoys a good reputation in international arbitration circles.

"I am very pleased that so many friends from home and abroad will attend this conference," he said.

"I am sure that the conference will create good results and have a profound influence on arbitration theory and practice."

This is the first time for the conference to be held in China.

On June 22 and 23, 1994, CIETAC and the ICCA successfully held a seminar on international commercial arbitration, which helped accelerate the promulgation of China's Arbitration Law.

Taking that opportunity, CIETAC proposed the staging of an ICCA conference in Beijing.

 
 
     
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