A Chinese court has for the first time enforced an award made in China by a foreign arbitral institution. The decision apparently follows a policy of limiting domestic awards to Chinese arbitral institutions, although lawyers have warned it is too early to draw any firm conclusions from the decision.
There has long been uncertainty as to whether an award made in China by a foreign arbitral institution would be recognised and enforced by PRC courts. But in April 2009, the Ningbo Intermediate Court reportedly upheld an International Chamber of Commerce (ICC) award by labelling it as non-domestic – despite the fact that the award was made in Beijing.
“The court got round this by allowing the successful party to rely on the New York Convention,” said Robert Pé, an Orrick Herrington & Sutcliffe dispute resolution partner. “This enabled the Chinese court to enforce the award, but the reasoning is questionable.”
Although it...
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