A well-drafted arbitration clause is crucial for resolving disputes with Chinese counterparties. Here's how to create effective arbitration agreements.
Why Arbitration for China?
- Enforceable internationally under New York Convention
- Neutral forum available
- Confidential proceedings
- Expert arbitrators
- Generally faster than litigation
Choosing an Institution
Chinese Institutions
- CIETAC: China's main international arbitration body
- BAC/BIAC: Beijing Arbitration Commission
- SHIAC: Shanghai International Arbitration Center
International Institutions
- HKIAC: Hong Kong - popular neutral choice
- SIAC: Singapore
- ICC: International Chamber of Commerce
Recommendation: For disputes with Chinese parties, HKIAC or SIAC offer neutral venues with awards enforceable in China under the New York Convention.
Essential Elements
- Clear agreement to arbitrate
- Specified arbitration institution
- Seat of arbitration
- Number of arbitrators
- Language of proceedings
- Governing law
Sample Clause (HKIAC)
"Any dispute arising out of or in connection with this contract shall be referred to and finally resolved by arbitration administered by the Hong Kong International Arbitration Centre under the HKIAC Administered Arbitration Rules in force when the Notice of Arbitration is submitted. The seat of arbitration shall be Hong Kong. The number of arbitrators shall be three. The arbitration proceedings shall be conducted in English."
Common Mistakes
- Vague or incomplete clauses
- Naming non-existent institutions
- Conflicting dispute resolution provisions
- Failing to specify seat
- Unrealistic procedural requirements
Governing Law Considerations
- Substantive law of contract
- Law governing arbitration agreement
- Procedural law (usually seat's law)
- These can be different
Enforcement Considerations
Think about where you'll need to enforce:
- China: Choose institution recognized there
- Multiple jurisdictions: Use New York Convention member
- Consider counterparty's assets location
Additional Provisions
- Emergency arbitrator provisions
- Interim measures
- Consolidation of related disputes
- Confidentiality requirements
- Cost allocation
Arbitration Clause Review
I help draft and review arbitration clauses for contracts involving China.
Contact MeDisclaimer: This article is for informational purposes only and does not constitute legal advice. For advice on your specific situation, please contact me directly.
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