China International Economic and Trade Arbitration Commission (CIETAC),  adhering to the principle of independence, impartiality and efficiency in providing arbitration service, is oriented to build itself a  world-class arbitration institution that is professional, international and informationized. With such aim, CIETAC endeavors to strengthen its overall competitiveness and enhance its arbitration credibility, and has achieved significant progress.

 

I.CIETAC’s main Work in 2017

 

i. The Caseload and the Amount in Dispute reached record high and   Arbitration Services were further improved.

 

In 2017, CIETAC accepted 2,298 arbitration cases, a year-on-year growth of 5.36%, including 476 foreign-related cases and 1,822 domestic ones. The total amount in dispute was RMB71.888 billion, a year-over-year growth of 22.55%. The disputed amount of foreign-related cases amounted to RMB35.024 billion with a year-over-year growth of 127.11% and that of domestic cases was RMB36.864 billion, a year-on-year growth of 14.75%. The number of cases with disputed amount over RMB 100 million surged over 100 for the first time (up to 117), which was 42 more than that of last year. CIETAC concluded 2,273 cases, a year-over-year growth of 7.67%. The parties were from 60 countries and regions. The average amount in dispute of foreign-related cases reached RMB 73.5 million. Parties were mainly from the United States, Canada, Brazil, Mexico, Germany, the United Kingdom, France, Italy, Austria, the Netherlands, South Africa, Russia, Australia, India, Japan, Korea, Singapore, Hong Kong, etc. There were 57 cases using English or both Chinese and English as the arbitration languages. There were 128 appointments of foreign arbitrators in 71 cases, involving 47 foreign arbitrators. In 2017, CIETAC accepted 156 domain name cases.

 

 

 

Overall, CIETAC caseload increased steadily with more high-quality case sources. The amount in dispute increased significantly with more major and important cases. The number of foreign parties’ nationalities reached a record high, raising internationalization of CIETAC arbitration to a new level. The efficiency in managing and concluding the cases was improved with better arbitration services.

 

 

ii. Implementing Strict Measures to Improve Quality and Efficiency of Case Management, and Taking New Development Steps

 

Focusing on case management and giving utmost priority to the improvement of case-managing quality and efficiency, CIETAC has continuously advanced procedural reforms and procedural administration, thus effectively improved its institutional competitiveness and party satisfaction.

 

1. Promoting Reform

 

CIETAC improved the case-filing procedure, enhanced the service awareness of staff and the satisfaction of parties; cleared up unsettled major and difficult cases, and effectively improved case-management quality and efficiency; promoted the reform of hearings, promulgated the Guidelines for Hearing CIETAC Cases in order to help arbitrators to adopt suitable hearing approaches to promote the internationalization of oral hearings; speeded up arbitral procedures, formulated the Arrangements for Using Electronic Methods to Enhance Communication between Case Managers and Arbitral Tribunals and the Arrangements for Promoting the Use of Electronic Service of Documents in Arbitration Procedures, advanced electronic information management to save costs and improve efficiency; standardized case management procedures, revised and improved the Case Management Guidelines for Case Managers, further emphasized case managers’ responsibilities, and formed an efficient and operable case management pattern which could be supervised, inspected and tracked.

 

2. Enhancing Informatization Construction

 

CIETAC officially launched the WeChat service platform for arbitrators in May 2017, providing efficient mobile services for arbitrators to handle cases. It also upgraded the original online arbitration platform based on the experience of online domain name dispute management, actively promoting the modernization of case administration.

 

3. Improving Supervision Mechanism

 

CIETAC formulated or revised the following documents: Guidelines on the Appointment of CIETAC Arbitrators, the Detailed Rules for the Supervision of Case Management, the Administrative Measures on CIETAC staff Working as Arbitrators (Trial) and the Measures for the Appointment of Former CIETAC Staff, etc., strengthened the supervision and management of arbitrators and case managers, and ensured the independent and impartial case management.

 

iii. Promoting Institutional Construction and Implementing New Measures of Reforms

 

1. Steadily Promoting the Reform of CIETAC and CMAC

 

Giving full play to their respective advantages in the field of commercial and maritime arbitration, CIETAC and CMAC steadily promoted the independent operation of CMAC in personnel, funding and resources.

 

2. Improving Institutional Layout and Serving the Needs of National Foreign Economic and Trade Development

 

To better implement the Belt and Road Initiative, CIETAC set up the Silk Road Arbitration Center in Xi’an in September 2017 to develop arbitration services along the Belt and Road, and provide high-quality, efficient and convenient services for enterprises relying on the Silk Road for foreign economic and trade cooperation. CIETAC set up Sichuan Sub-Commission in Chengdu in November 2017 to meet local needs for resolving foreign-related economic and trade disputes, and to facilitate the development of local foreign economic and trade development. CIETAC also launched the Public-Private Partnership (PPP) Arbitration Centre in May 2017, to further expand CIETAC's service areas, optimiz its case structures, continuously explore its legal service functions, and play a leading role in China’s arbitration practice.

 

iv. Training Internationalized Talents to Provide Intellectual Support for Sustainable Development of China’s Arbitration Cause

 

1. Building Internationalized Arbitrators Team

 

CIETAC renewed its Panel of Arbitrators, engaging 1,438 new arbitrators, building an arbitrators’ team with higher internationalization level and better industrial and regional distribution. CIETAC engaged 408 additional foreign arbitrators, most of whom are experts mainly from the Belt and Road countries and regions or members of the International Council for Commercial Arbitration (ICCA). CIETAC arbitrators’ nationalities are increased from 41 to 65, improving its internationalization significantly.

 

2. Improving Case Managers’ Competence

 

CIETAC regularly held workshops for case managers to exchange experience, which has enhanced their learning awareness, professional awareness, service awareness, and responsibility awareness. CIETAC attaches great importance to improve the essential skills, overall competence and work style of the case managers, and exercises strict supervision and management of their work, in order to improve the case managers’ professional skills and level of internationalization.

 

3. Training Internationalized Arbitration Talents

 

CIETAC held various activities such as the Bar Council Training Scheme (BCTS) for Chinese lawyers, Advanced Arbitration Seminars and Moots of Arbitration Practice etc., with thousands of participants, preparing trained talents for the internationalized development of China’s arbitration cause.

 

v. Building China’s Investment Disputes Settlement Platform, Actively Implementing the Belt and Road Initiative

 

In order to meet the practical needs of resolving international investment disputes between investors and host states, CIETAC formed an expert-led team, consulted various opinions, drew on international customs and practice, and eventually promulgated the CIETAC International Investment Dispute Arbitration Rules (hereinafter referred to as Investment Arbitration Rules) in September 2017. CIETAC followed World Bank’s International Center for Settlement of Investment Disputes and Singapore International Arbitration Center in promulgating investment arbitration rules, filling China’s gap in this field. The Investment Arbitration Rules will provide an important platform for Chinese enterprises to resolve investment disputes with host states, and actively promote the construction of internationalized, legitimate and convenient business environment for the Belt and Road Initiative.

 

vi. Focusing on Innovative Measures to Promote New Achievements in the Construction of Pilot Free Trade Zones (FTZs)

 

1. Establishing Service Centers in FTZs

 

In order to further improve the construction of FTZs, CIETAC set up 7 service centers in 6 pilot FTZs in Tianjin, Shanxi, Fujian, Chongqing, Hubei and Sichuan, fully cooperating with FTZs in foreign trade and investment, international exchanges and cooperation, foreign-related commercial legal services and relevant researches and providing FTZ enterprises with professional, convenient and comprehensive services.

 

2. Providing Non-Institutional Arbitration Services

 

CIETAC promulgated the CIETAC Hong Kong Arbitration Center Rules as Appointing Authority in Ad Hoc Arbitrations in July 2017 in reference of the Supreme People’s Court (SPC) Opinions on Providing Judicial Safeguards for the Construction of FTZs and international arbitration practice. It provides assistant services to parties and tribunals in non-institutional arbitration proceedings upon request. The CIETAC Hong Kong Arbitration Center has provided non-institutional arbitration services for nearly 20 ad hoc arbitration cases. This practice provided reference for the appointment of arbitrators in the “three specific’ arbitration cases in China’s FTZs, i.e. cases in which the parties have agreed on arbitration in specific places, by specific arbitrators and under specific arbitration rules.

 

vii. Implementing Brand Strategy and Leading the Development of China’s Arbitration

 

1. Organizing China Arbitration Week Successfully

 

The 2017 China Arbitration Week closely followed the pulse of China’s new era, demonstrated the characteristics of the new arbitration era, focused on the Belt and Road Initiative and international arbitration development. During the Week, CIETAC organized 36 events in 17 cities across China, such as the China Arbitration Summit co-hosted with the SPC, the News Release for CIETAC International Investment Dispute Arbitration Rules, Xiong’an New District Arbitration Innovation and Development Forum, FTZ Commercial Arbitration Seminar, Commercial Arbitration and Prevention of Enterprise Risks Symposium, China Youth Arbitration Forum, PPP Arbitration Seminar, Corporate Legal Affairs Annual Meeting, the first Tang Lecture to present Prof. Tang Houzhi’s contributions and Arbitration Day serial of foreign arbitration institutions, attracting more than 6,000 participants from nearly 30 countries and regions, and fully demonstrating significant achievements in the construction of law-based arbitration in China and prominent role of international arbitration in the implementation of the Belt and Road Initiative.

 

2. Holding the CIETAC Cup Moot Successfully

 

CIETAC held the 15th CIETAC Cup International Commercial Arbitration Moot, attracting more than 400 student participants of 50 teams from 47 famous Chinese universities, inviting 100 Chinese and foreign arbitration professionals to serve as judges and arranging 107 rounds of competition. The electronic scoring system greatly enhanced the transparency, fairness and efficiency of the competition. The Moot has attracted attention of Chinese law schools and arbitration circles, further expanded its influence and coverage, and has become the first brand in China’s arbitration-related competitions, cultivating talents for internationalized development of China’s arbitration.

 

3. Hosting Commissioner/Arbitrator Forums

 

CIETAC hosted nearly 60 informative Commissioner /Arbitrator Forums, various seminars and trainings. Relying on its abundant expert resources and focusing on topical arbitration and legal issues, these activities attracted more than 10,000 participants, hence further enhanced the professional and international level of Chinese arbitration.

 

4. Researching on Arbitration Practice

 

CIETAC released the 2016 Annual Report on International Commercial Arbitration in China, organized the research and release of the Research on the International Arbitration Systems of the Belt and Road Countries (III), researched on the third-party funding in international arbitration and issued the Guidelines for Third-Party Funding in September 2017, playing a leading role in arbitration research. CIETAC also promoted China’s arbitration legal system, by providing suggestions for legislation and amendments, organizing experts to have symposiums for amendments and comments regarding the draft of Civil Law on Contract (2017 Interior Draft of the Civil Law Department), the Regulations on Private-Public Partnership in Infrastructure and Public Service and other legislative documents, contributing to the rule of law in China.

 

5. Making New Achievements in Cross-strait Arbitration Cooperation

 

The Arbitration Center Across the Straits actively set up a working platform. It jointly established the Taiwan law ascertainment mechanism with Pingtan People’s Court and successfully held the first Cross-strait Arbitration Summit to deepen the cross-strait legal and cultural exchanges and cooperation. In July 2017, CIETAC and Taiwan Chinese Arbitration Association (CAA) organized the 17th Cross-strait Economic and Trade Arbitration Symposium to provide expert opinions on the potential legal risks of cross-strait business and efficient dispute resolution, building a platform for cross-strait exchanges in arbitration, law, and business, and playing an important role in promoting the sound development of cross-strait economic and trade relations.

 

viii. Conducting International Arbitration Exchange and Cooperation and Making New Contributions to Global Arbitration Rule Making

 

1. Extensive Foreign Exchange and Cooperation

 

CIETAC has greatly promoted the exchanges and cooperation with arbitration and legal circles around the world in 2017, by establishing ties with seven institutions such as Istanbul Chamber of Commerce Arbitration and Mediation Center in Turkey, hosting the visits of nearly 50 foreign delegations from international arbitration institutions such as the ICC Arbitration Court, foreign universities and embassies in China, attending more than 50 arbitration legal events, organizing nearly 20 delegations to foreign countries or regions, visiting internationally renowned arbitration institutions and law firms, holding meetings with representatives of local Chinese enterprises and chambers of commerce and organizing international arbitration seminars abroad, which in all have further improved its international reputation and influence.

 

2. In-depth Participation in International Arbitration Governance

 

As an NGO observer of the United Nations Commission on International Trade Law (UNCITRAL), CIETAC attended the 66th and 67th sessions of the UNCITRAL Working Group II (Dispute Resolution), the 50th Commission Session and the joint session of UNCITRAL and Swiss International Dispute Resolution Center, participating in the deliberation and discussion of relevant working documents, representing the voice of the Chinese arbitration community, proposing valuable expert opinions, and contributing Chinese wisdom to international arbitration rule making.

 

ix. Continuously Strengthening Communication and Exchange with Judiciary and Striving to Create a Favorable Judicial Environment for Arbitration

 

In order to promote consistent, standardized and law-based judicial review over arbitration, CIETAC continuously strengthened exchanges and cooperation with people’s courts at all levels to create a more supportive, friendly, and internationalized judicial supervision environment.

 

First, CIETAC strengthened ties and cooperation with the SPC and local courts at all levels, co-organized China Arbitration Summit with the SPC during China Arbitration Week, and invited judges of the SPC and relevant High People’s Courts to participate in international arbitration seminars organized by CIETAC, jointly promoting the construction of China's arbitration judicial environment.

 

Second, CIETAC held forums with people’s courts at all levels on issues such as judicial supervision and enforcement of arbitral awards to exchange experiences and enhance consensus, jointly safeguarding the credibility of arbitration.

 

Third, CIETAC cooperated with people’s courts in the process of the judicial review in accordance with law, to ensure the smooth progress of the review and enforcement procedure of competent courts in China.

 

II. New Situation and Relevant Ideas on Working

 

The Fourth Plenary Session of the 18th Central Committee of the Communist Party (the 4th Session) initiated to improve the arbitration system and the credibility of arbitration. The report of the 19th Communist Party of China (CPC) National Congress (the 19th Congress Report) further clarified that the law-based governance in all dimensions is an essential requirement and an important guarantee for socialism with Chinese characteristics, pointing out the direction for the development of arbitration in China and raising requirements therefor. CIETAC will thoroughly implement the spirit of the 4th Session and the 19th Congress Report, focusing on the overall layout of the "All-round economic, political, cultural, social and ecological progresses five in one" and the "Four-Pronged Comprehensive Strategy"，i.e. making comprehensive moves to finish building a moderately prosperous society, deepen reform，advance the law-based governance of China, and strengthen Party self-discipline, to effectively strengthen and improve its arbitration services, deepen its reform, contribute to the construction of arbitration credibility, pace up its internationalization with the aim of building a world-class arbitration institution and assisting the construction of China as an international arbitration center.

 

III. Main Tasks in 2018

 

CIETAC will conscientiously implement the overall requirements of rule of law raised by the 19th Congress, strive to enhance the competitiveness of its arbitration services, continue to meet parties’ growing dispute resolution needs, actively explore new patterns of arbitration work, serve the Belt and Road Initiative and FTZs construction and development strategies, and make new contributions to building a law-based, international, and facilitative business environment.

 

First, CIETAC will enhance its case-management quality and efficiency to a new level. It will pay close attention to its case-managing quality, effectively improve efficiency, strengthen the construction of information platforms, promote the application of on-line case-managing and other science and technologies, use artificial intelligence to improve the standardized and refined administration of arbitration cases, promote office modernization, and comprehensively enhance its professional capabilities, service efficiency and management level.

 

Second, CIETAC will actively build China’s new platform for the settlement of investment disputes. CIETAC will conscientiously promote CIETAC Investment Arbitration Rules, improve its publicity, guide enterprises to know, understand and choose the CIETAC investment arbitration mechanism, and provide professional services for Chinese enterprises to prevent overseas investment risks. It will strengthen its research on international investment arbitration and actively serve China’s investment arbitration practice.

 

Third, CIETAC will develop new areas of arbitration market. It will adopt new ideas, concepts and methods for innovation and development, intensify its publicity and development efforts, and promote arbitration clauses to build a solid foundation for its sustainable development.

 

Fourth, CIETAC will vigorously promote the new institutional construction. CIETAC will make overall arrangement for the comprehensive development of its headquarter and sub-commissions, improving the construction of its branches and bringing their functional role to full play. It will also maximize the role of its Hong Kong Arbitration Center as the window for mutual understanding between mainland China and the outside world and the pilot of following international advanced practices, making it an important pillar for the internationalized development of CIETAC.

 

Fifth, CIETAC will make new achievements in building arbitration credibility. It will supervise and manage its staff strictly, improve the arbitrators' supervision mechanism, strengthen professional training and self-cultivation, continuously improve case managers’ professional knowledge and case-managing abilities, ensuring law-based, corrupt-free and impartial case managing. It will also improve the case management system, strengthen all-round capacity building, and vigorously cultivate a team of professional case managers with vision, capability and sense of responsibility to safeguard the credibility of arbitration.

 

Sixth, CIETAC will forge ahead with internationalized development. It will strengthen the internationalization of cases and their management, and hold a series of events during China Arbitration Week, including China Arbitration Summit and CIETAC Global Arbitrators’ Forum for further international arbitration exchanges. It will continue to organize the CIETAC Cup Moot and other activities to train international arbitration talents, and strengthen its research on arbitration theories and practices to provide useful reference for China’s arbitration legal practice. It will further strengthen foreign exchanges and cooperation, and actively participate in major international conferences in the field of international dispute resolution such as UNCITRAL sessions, contributing China’s experience and wisdom in the formulation of international rules.