Arbitration is another form of dispute resolution, apart from litigation, that can be used to solve contractual disputes between parties. The decision to arbitrate a cause instead of commencing litigation can be useful for foreign investors in China who do not want to get involved with the Chinese courts.
Our lawyers in China can help you conclude any contract and agreement in China using a convenient arbitration clause – the only way in which you can make arbitration mandatory if a dispute arise with the other party.
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Differences between arbitration and litigation in China
Arbitration is different from litigation and, in some respects, this alternative dispute resolution method is preferable compared to the lengthier process of taking a case to court. The parties can appoint their arbitrator, while in case of a court order, the judge is appointed by default. What’s more, the arbitration procedure and the rules that will govern the arbitration can also be chosen by mutual agreement by the parties and expressed in the arbitration clause included in the contract.
Arbitration is a process that generally remains between the parties judging a case, while a civil case is judged in a public court. The decision taken at the end of the arbitration process is final, compared to a trial where the process takes longer and has more steps. Although some disputes concerning issues like marriage, adoption, inheritance and generally other family law matters cannot be judged by arbitration, business owners in China can use this method for business and commercial disputes.
If you are unable to use arbitration to solve a dispute in China, our litigation lawyers can represent your case in court.
The Chinese Arbitration Commission
The China International Economic and Trade Arbitration Commission (CIETAC) is a permanent arbitration institution that solves economic and trade disputes in China using arbitration methods. Its main office is located in Beijing and CIETAC also has a branch office in Hong Kong, known as the Hong Kong Arbitration Center.
The Chinese Arbitration Commission solves international and domestic cases that involve natural and legal persons as well as organizations.
Our law firm in China can help you in arbitration matters. You can contact our Chinese lawyers for more information about how to include and use arbitration clauses.