Abstract

There are cases in which domestic companies in China arrange foreign arbitration because of the problems in credibility and cost of domestic arbitration, the convenience of foreign arbitration, and problems in the application of arbitration procedures and practical laws. Even domestic companies have committed domestic disputes to foreign arbitration during the arbitration agreement. In other words, even though it is a contract between a Chinese company and a Chinese company without any international contract elements, they arrange foreign institutional arbitration or foreign ad hoc arbitration. Chinese current legal and judicial interpretation does not stipulate the effect of any foreign arbitration agreements on contracts without international contract elements. We only can verify the attitude of Chinese court on the foreign arbitration agreement through answering of Supreme People’s Court of China about the request of lower court. This paper examines the attitude of Chinese courts to foreign arbitration agreements for contracts without international contract elements through the actual case. In addition, through case analysis, the study also examined the precautions for Korean investment companies in China in case of that Korean companies arrange foreign arbitration institutions for the arbitration agreement with Chinese companies.

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