Shanghai CIETAC cuts ties with Beijing

“Recently, without any approval, the CIETAC Shanghai Sub-Commission which is a branch office of CIETAC, declared that it was an independent arbitral institution, constituted its own commission, published its own arbitration rules and adopted its own panel of arbitrators,” said an official statement from the China International Economic and Trade Arbitration Commission (CIETAC) on May 1.

The Commission is the world's busiest arbitral institution, accepting 1,435 cases last year. CIETAC released its revised rules this year, with practitioners saying the move brings the institution in line with best practices in international arbitration.

As the new rules became effective on May 1, Shanghai CIETAC unexpectedly released its own Arbitration Rules and stated that it is independent of CIETAC. Shanghai CIETAC claims it is not a branch of CIETAC and will apply its own rules during arbitration and appoint its own board of arbitrators.