The New CIETAC Arbitration Rules

Abstract

THE CHINA Chamber of International Commerce adopted a series of major revisions to the Arbitration Rules of the China International Economic and Trade Arbitration Commission (‘CIETAC’), China's main international arbitration institution. The revised CIETAC Arbitration Rules (the ‘New Rules’), which came into effect on 1 May 2005, provide for a major overhaul of CIETAC arbitration procedures and are likely to have a profound influence on the future direction of arbitration in China. This article provides a summary of the key changes introduced by the New Rules as compared with the earlier version of the CIETAC Rules which came into force on 1 October 2000 (the ‘2000 Rules’). References in the text to article numbers are references to the New Rules, unless otherwise noted. Since its establishment in 1954, CIETAC has amended and restated its rules of procedure on seven different occasions.1 In this latest revision of its rules, CIETAC has aimed to confront and address two challenges. The first is the increasing criticism from both foreign and domestic commentators dissatisfied with CIETAC's rules and procedures.2 The second is the increasing competition faced by CIETAC from other arbitration institutions inside China.3 Prior to 1996, CIETAC maintained a monopoly over all international arbitrations conducted inside China. However, since that time, more than 170 arbitration institutions in mainland China have been permitted to exercise jurisdiction over international arbitration cases. As a result, one of CIETAC's aims in amending its rules has been to enhance its competitiveness. According to Wang Shengchang,4 CIETAC's Vice Chairman, the key goals guiding CIETAC in the amendment of the 2000 Rules have been: 1. to grant full respect to the principle of party autonomy, to the extent that existing Chinese law permits; 2. to enhance the flexibility and efficiency of arbitration proceedings in China by drawing on …