CHINA: An Introduction to Dispute Resolution (PRC Firms)
New Developments in Chinese Arbitration:
中国仲裁的新发展:
As is well known, Chinese arbitration is different from international arbitration in many aspects. In international arbitration, with fixed and pre-arranged procedural timetables, parties are required to exchange arguments and evidence before hearings. “Ambush” is not allowed. Hearings are conducted in a sophisticated manner aiming to discover the truth. Of course, sophisticated proceedings may also lead to significant time and monetary costs. Chinese arbitration tends to be simple, flexible and fast. It is quite common for a respondent to submit its defence and evidence at a hearing. Evidence ambush is allowed, sometimes even used as a “tactic”. A tribunal is tasked to summarise focal factual and legal issues at the hearing. The goal in Chinese arbitration is to achieve a “focused and efficient adjudication”, not an “overly simple and rough” one. The fine line is largely in the hands of arbitrators.
众所周知，中国仲裁与国际仲裁差异很大。国际仲裁程序安排固定、精细，开庭前需要完成全部的观点交换和证据披露，不允许当庭“突袭”。开庭审理复杂而精巧，目的是要探究案件的真相。当然，精细的国际仲裁程序，也意味着高昂的时间和金钱成本。中国仲裁程序简单、灵活、快速，开庭时被申请人才提交答辩意见和证据的比比皆是，证据突袭是允许的，甚至被当作一种“战术”。仲裁庭需要当庭归纳案件的焦点问题，包括事实问题和法律问题。中国仲裁的目的是要实现 “集中高效的审理” ，避免 “简单粗暴的审理” 。这一线之隔主要掌握在仲裁员手中。
Despite major differences in arbitration procedures and ways of conducting hearings, in recent years, Chinese arbitration has been very consistent with international trends in formulating arbitration rules. When it comes to recent developments in Chinese arbitration, we can’t overlook the new arbitration rules which were released by the China International Economic and Trade Arbitration Commission (“CIETAC”) in September 2023 and will become effective from January 2024 (“2024 CIETAC Rules”). These new rules not only bring significant updates to the 2015 CIETAC arbitration rules that have been in place for nearly a decade, but also echo the proposed major amendments in the 2021 “Draft Amendment to the Arbitration Law of the People’s Republic of China” (“Draft Amendment to the Arbitration Law”). Below are a few highlights of the notable revisions:
虽然在程序和审理方式上有重大差异，中国仲裁近年来在规则制定方面与国际潮流非常接轨。说到中国仲裁近期的新发展，不得不提中国国际经济贸易仲裁委员会（“贸仲”）在2023年9月发布、2024年1月施行的新仲裁规则（“《2024贸仲规则》”）。此次发布的《2024贸仲规则》不仅对已经实施了近10年的《2015贸仲规则》进行了大幅的更新，也呼应了2021年《中华人民共和国仲裁法（修订）（征求意见稿）》（“《仲裁法修订草案Ad Hoc Arbitration 临时仲裁》”）中提议的重大修改。其中，有代表性的修订包括以下几处：
1. Ad Hoc Arbitration:
临时仲裁:
Following a recent and gradual open-up of ad hoc arbitration through pilot programs and judicial practice, the Draft Amendment to the Arbitration Law allows, for the first time at the legislative level, parties in foreign-related arbitration to submit their disputes to an ad hoc arbitration tribunal. CIETAC has astutely sensed this new trend and incorporated a new rule (Article 2.7 of the 2024 CIETAC Rules) which allows it to offer administrative and ancillary services for ad hoc arbitration per parties’ agreements and requests. It is foreseeable that other arbitration institutions in mainland China may also incorporate ad hoc arbitration provisions into their arbitration rules or introduce specific rules and guidance on this matter.
在近些年的试点和司法实践中的逐步放开后，《仲裁法修订草案》第九十一条首次在立法层面允许涉外仲裁案件的当事人将争议交由临时仲裁庭解决。贸仲敏锐地观察到了这一新的动向，并在《2024贸仲规则》第二条第（七）款规定贸仲可以根据当事人的约定和请求为临时仲裁提供管理和辅助服务，为贸仲管理临时仲裁提供了规则上的依据和支持。可以预见到，中国大陆的其他仲裁机构也会在其仲裁规则中添加有关临时仲裁的规定，或者出台关于临时仲裁的特别规定。
2. Discretionary Jurisdiction:
自裁管辖权:
Under Article 6.1 of the 2024 CIETAC Rules, once formed, a tribunal is granted by CIETAC the power to determine its own jurisdiction. It should be noted that, under the previous rules, the power to make a jurisdictional decision is vested in CIETAC and if necessary, CIETAC may grant such power to a tribunal. The 2024 CIETAC Rules have made a significant change from case-by-case authorisation to general authorisation. In other words, once a tribunal is formed, it will automatically have the power to decide on matters related to its own jurisdiction. This provision is not only compatible with the current legal framework of the Arbitration Law which provides that jurisdictional objections should be decided by an arbitration commission, but also reflects the amendment proposed by Article 28 of the “Draft Amendment to the Arbitration Law” which expressly grants a tribunal the power to decide its own jurisdiction. Moreover, this change is in line with the common practice in international commercial arbitration, thereby making it a meaningful update.
《2024贸仲规则》第六条第（一）款规定，仲裁庭组成后，仲裁委员会授权仲裁庭作出管辖权决定。值得注意的是，在旧规则下，作出管辖权决定的权力在于贸仲，如有必要，贸仲也可以将此权力授予仲裁庭。《2024贸仲规则》对此作出了重大修改，从个案授权模式变成了普遍授权模式。即：在组庭后，仲裁庭将自动获得授权就其自身的管辖权作出决定。这一规定既遵守了目前《仲裁法》关于管辖异议应由仲裁委员会决定的法律框架，又响应了《仲裁法修订草案》第二十八条由仲裁庭自己决定管辖权的新发展，还与国际通行的仲裁实践保持一致，可谓一举三得。
3. Early Dismissal and Interim Award:
早期驳回和中间裁决:
Following UNCITRAL’s adoption of a guidance text on early dismissal and preliminary determination in July 2023, the 2024 CIETAC Rules incorporate early dismissal rules for the first time in China. Under Article 50 of the 2024 CIETAC Rules, a party may request early dismissal of a claim or counterclaim in whole or in part on the grounds that the claim or counterclaim is manifestly without legal merit or is manifestly outside the jurisdiction of an arbitral tribunal. An arbitral tribunal has the right to decide whether to accept an application for early dismissal. The rules also clarify that the application for early dismissal does not affect the continuation of the arbitration proceedings.
随着贸法会于2023年7月正式通过“早期驳回和初步决定”指导文案后，《2024 贸仲规则》首次在中国引入了早期驳回制度。第50条下，当事人可以以仲裁请求或反请求明显缺乏法律依据或明显超出仲裁庭的管辖范围为由申请早期驳回全部或部分仲裁请求或反请求。仲裁庭可以对早期驳回程序申请作出是否受理决定。规则进一步明确当事人提起早期驳回程序申请不影响仲裁庭继续进行仲裁程序。
The 2024 CIETAC Rules further recognise a tribunal’s power to render an interim award. In prior Chinese arbitration practice, without clear rules, interim awards were seldom used. Now under the 2024 CIETAC Rules, an arbitral tribunal may issue interim awards on any issue before rendering a final award, at its own initiative or upon its approval of a party’s request.
此外，《2024 贸仲规则》认可仲裁庭有权作出中间裁决。过去在国内仲裁实践中，中间裁决很少被使用，并未形成确定的适用规则。《2024 贸仲规则》明确，仲裁庭认为必要或当事人提出请求并经仲裁庭同意的，仲裁庭可以在作出最终裁决之前，就案件的任何问题作出中间裁决。
Both early dismissal procedures and interim awards can be used to manage and advance proceedings in a more efficient way. In particular, with relatively certain conclusions on preliminary questions and issues before a final award is made, these mechanisms can facilitate parties’ strategy-making for next steps and help manage their expectations and legal costs.
早期驳回程序和中间裁决，均可用于更加高效地管理和推进案件程序，特别是在最终裁决之前，可就案件的先决问题、前置问题做出相对有确定性的结论，方便当事人考虑如何推进下一步程序，也方便当事人管理对程序的预期及法律服务成本。
4. Interim Measures:
临时措施:
Another meaningful update in the 2024 CIETAC Rules is Article 23 (1), which explicitly provides that CIETAC can, upon a claimant’s request, transfer its preservation application to a court before serving a notice of arbitration on a respondent. The timing of preservation is usually critical to a claimant. If a preservation application is transferred after a notice of arbitration is served, a respondent may have sufficient time to transfer its assets. In practice, Chinese courts generally are reluctant to grant pre-arbitration preservation applications. CIETAC’s new rule may well address the challenge faced in pre-arbitration preservation and enhance the success rate and usability of interim measures such as asset preservation in arbitration. On a related note, the process for foreign companies and individuals to apply for interim measures such as asset preservation in arbitration is streamlined after the “Convention Abolishing the Requirement of Legalisation for Foreign Public Documents” comes into effect in China on 7th November 2023. There will be no need for foreign parties to go through the cumbersome consular authentication procedures anymore.
《2024贸仲规则》的另一个有意义的修改是在第二十三条第（一）款第二段明确规定仲裁委员会可依据当事人的请求，将其提交的保全措施申请在仲裁通知发出前先行转交法院。获得保全的时间点对于申请人来说往往至关重要。如果保全申请在仲裁通知送达后才向法院转交，那么被申请人往往有足够时间转移其资产。实践中，中国法院普遍不愿意接受仲裁前保全申请。贸仲的新规则将可能弥补仲裁前保全在实践中遇到的困境，从而更好地提高保全等临时措施申请的成功率，大大提高仲裁中财产保全等临时措施程序的易用性。与此相关的是，随着2023年11月7日《取消外国公文书认证要求的公约》在中国生效实施，此后外国公司和个人在提起仲裁时申请财产保全等临时措施将更加便捷，而无需经历繁琐的使领馆认证程序。
5. Third-Party Funding:
第三方资助:
While third-party funding is well established and commonly seen in international arbitration, it is still relatively new in China. Recent court judgments in China have shown opposite attitudes towards third-party funding in litigation and arbitration. For instance, a Shanghai court, in a judgment in May 2022, determined a third-party funding agreement in litigation invalid due to violations of public order and good morals ((2021) Hu 02 Ming Zhong No. 10224), while a Beijing court ruling in November 2022 recognised the validity of third-party funding in arbitration ((2022) Jing 04 Ming Te No. 368, 369). Article 48 of the 2024 CIETAC Rules, taking into account CIETAC’s recent experience in dealing with cases involving third-party funding, provides a clear provision requiring parties to disclose the existence and arrangements of third-party funding, so that a tribunal can take that into consideration in making its final award. This new provision not only acknowledges the practice of third-party funding in arbitration, but also enhances transparency and helps avoid potential conflicts of interest and moral risks.
尽管第三方资助在国际仲裁中已十分成熟和多见，但在中国仍是新鲜事物。从近期中国法院的判决来看，法院对于诉讼和仲裁中的第三方资助似乎持有不同的态度。上海市法院在2022年5月的一份判决中认为诉讼中的第三方资助协议违反了公序良俗因此无效（（2021）沪02民终10224号），而北京法院在2022年11月的裁定中则认可了仲裁中第三方资助的效力（（2022）京04民特368、369号）。《2024贸仲规则》第四十八条结合贸仲近期处理的有关第三方资助案件，就第三方资助作出了明确规定，并要求当事人披露第三方资助的事实和相关安排，允许仲裁庭在作出裁决时考虑第三方资助的相关事实。这一新规定认可了仲裁中第三方资助的实践，并且要求披露第三方资助的存在和安排，增加第三方资助的透明性，以避免潜在的利益冲突和道德风险。
In addition to the new developments discussed above, the 2024 CIETAC Rules also amend the procedure for appointing a presiding arbitrator and clarify that both Chinese and foreign arbitrators can choose to charge fees on an hourly basis. It is truly encouraging to see that Chinese arbitration, while preserving its unique characteristics, continues to integrate and draw from the latest practices and developments in international arbitration. These advancements will undoubtedly provide a better dispute resolution experience for users, both domestically and internationally.
除了前述新的发展之外，此次《2024贸仲规则》还修改了首席仲裁员的指定程序、明确了中外籍仲裁员均可选择按小时收费等。我们欣喜地看到，中国仲裁在保持自身特点的同时，继续融合与借鉴国际仲裁的最新实践和发展，必将为境内外的用户提供更好的争议解决体验。