Jurisdiction - China
Reports and Analysis
China – CIETAC Developments.

14 March, 2013

 

Legal News & Analysis – Asia Pacific – China – Dispute Resolution

 

Background

 

On 31 December 2012 CIETAC announced that the Shanghai and South China sub-commissions are forbidden from using the CIETAC name and brand and no longer authorised to accept and administer arbitration cases. This development is relevant to anyone referring disputes to CIETAC arbitration. Until the dispute between CIETAC Beijing and its sub-commissions has been resolved, parties should refer disputes only to CIETAC Beijing.

 

CIETAC has its central office in Beijing and has four sub-commissions in Shanghai, Shenzhen, Tianjin and Chongqing. All branches are allowed to accept and administer arbitration cases. Differences arose between CIETAC Beijing and the Shanghai and South China (Shenzhen) branches when the new CIETAC 2012 Arbitration Rules were introduced earlier this year. Consequently, the Shanghai and South China sub-commissions refused to follow the 2012 Rules and declared themselves independent arbitral institutions with separate arbitration rules.

 

Attempts to resolve these differences failed and in its latest announcement of 31 December 2012, CIETAC Beijing has declared that the Shanghai and South China sub-commissions are forbidden from using the CIETAC name and brand and that they are no longer authorised to accept and administer arbitration cases. The sub-commissions have responded, declaring themselves as independent arbitration institutions, approved and established by the Shanghai Municipal Government and Shenzhen Municipal Government respectively. Both declare that, according to the law, they will accept and administer any arbitration cases where parties have designated them in their agreement.

 

Implications

 

In light of these developments contracting parties should, where CIETAC is selected, make sure that the clause explicitly stipulates CIETAC Beijing as the arbitration institution.

 

Source: CIETAC website: http://www.cietac.org/

 

For further information, please contact:

 
Ben Giaretta, Partner, Ashurst
ben.giaretta@ashurst.com
 

 

 

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