ABC of Arbitration Procedure

A legal procedure called commercial arbitration is used to settle disagreements between companies or people. It is a substitute for litigation and is often favored since it is more effective, private, and adaptable. The arbitration procedure is administered by numerous arbitration commissioners in China and is controlled by the Arbitration Law.

2. requesting arbitration
An arbitration agreement and an application must be submitted to the appropriate arbitration commission as the first stage in the arbitration procedure. Also, the petitioner must pay the necessary arbitration costs and provide any relevant documentation. The respondent will then be informed by the arbitration commission and given a copy of the application and any attachments. After then, the responder has the predetermined amount of time to provide a defense or counterclaim.


3. Establishing the arbitration tribunal and choosing the arbitrator
The parties may choose a single arbitrator or name their own arbitrators once the arbitration commission has approved the case. The arbitrator(s) will be chosen by the arbitration commission on behalf of the parties if they are unable to agree on one. An arbitration panel will then be formed, with one arbitrator serving as the head arbitrator. The arbitration panel will then inform both parties and set a hearing date.

4. the arbitral proceeding
The arbitration trial is held in secret and has a choice between an oral or written format. Although oral arbitration is more often used in other sorts of disputes, written arbitration is frequently employed in maritime arbitration. Both sides will submit evidence and arguments to the tribunal throughout the arbitration trial. The tribunal may also examine any relevant documents and hear witness evidence.

6. Negotiation
Any party to the arbitration may ask the tribunal to support mediation efforts at any time. The tribunal will make an effort to assist the parties in reaching a settlement if both parties agree to it. The tribunal will issue a consent award in the event that a settlement is achieved. The panel will continue the arbitration procedure if no resolution is achieved.

6. The judgment and its legality
The tribunal will make an award based on the facts and arguments presented during the arbitration hearing. Both parties must abide by the award since it is final and binding. If one party rejects the award, it may be enforced by the courts.

7. When to use the streamlined process
Unless the parties agree otherwise, conflicts in China may be settled by a streamlined process if the sum at issue is little more than RMB 200,000. The parties may still agree to employ the streamlined process even if the amount in dispute exceeds RMB 200,000. The arbitration commission will decide whether the streamlined method is suitable based on the complexity of the case, the scope of the parties' interests, and other pertinent elements if the amount in disagreement is not mentioned.