For Russian companies entering the international market, choosing a reliable dispute resolution platform is crucial. In China, despite the presence of over 280 arbitration centers, not all are equipped to effectively work with foreign parties. Language barriers or limited arbitrator lists are common challenges. Pravo.ru analysts, in collaboration with experts, analyzed the largest centers to highlight their features, advantages, and potential risks, helping Russian businesses make informed decisions.
In China, arbitration centers are arbitration commissions, and dispute resolution within the country is only possible in approved institutions. Arbitration centers can only work with arbitrators included in their official list, although this rule does not apply to some centers. It’s also worth noting that most centers specialize in domestic disputes due to their regional specificity.
KKMP Partner Stanislav Dobshevich comments:
They are unfamiliar with the specifics of international disputes, and personnel lack the necessary expertise – this does not apply to Shenzhen, Shanghai, or Beijing. For example, the secretary of the center may not speak English. However, there are also local arbitration centers, such as the Harbin Arbitration Commission (HRBAC), which can offer Russian-speaking arbitrators specializing in Russian law or with Russian citizenship.
Stanislav also points out the high workload of the China International Economic and Trade Arbitration Commission (CIETAC), which can lead to delays in administrative procedures. In such cases, alternative options should be considered: the Beijing and Shanghai Arbitration Commissions or the Shenzhen International Arbitration Court. The Beijing Arbitration Commission (BAC) was the first in China to offer emergency arbitration procedures. While most Chinese institutions adopt a conservative approach, BAC and the Shanghai Center more frequently appoint emergency arbitrators to take urgent interim measures.