The Tarnished Brand of CIETAC: Understanding the 2012 CIETAC Dispute

Abstract

In recent years China has forged an international arbitration reputation, gained through the rise of China International Economic and Trade Arbitration Commission (CIETAC), China's pre-eminent foreign-related arbitral body for the dispute resolution of issues connected with Chinese economic and trade interests. However, CIETAC's very public internal feud of 2012 has brought into question the ability of China to provide a cohesive foreign-related arbitral framework that can deliver certainty of arbitral awards and fairness to foreign participants. This article provides an account of the dispute and its consequences by examining the amendments to the CIETAC arbitration rules and the Civil Procedure Law (CPL). It considers how these legislative changes both internationalized arbitration in China and also perpetuated the conflict between CIETAC Beijing and two of its sub-commissions. Finally, this article questions whether CIETAC remains a credible institution for the resolution of foreign-related commercial disputes in China.