CIETAC speaks out on a year of turmoil: interview

What practical advice would you give to both domestic and foreign parties when using CIETAC's mechanism?

The PRC Arbitration Law (中华人民共和国仲裁法) provides that a valid arbitration agreement must contain three elements: (1) expression of intent to apply for arbitration; (2) subject matter of the arbitration; and (3) the arbitration institution of choice. Therefore, if the lex causae of the arbitration agreement is the PRC Arbitration Law and the parties wish the disputes to be arbitrated by CIETAC, the parties must clearly indicate that CIETAC is the arbitration institution in the arbitration agreement along with the agreement to submit disputes to CIETAC for arbitration.

CIETAC is one of the major permanent arbitration institutions in the world and has administered the largest cumulative number of foreign and international arbitration cases in China. According to the CIETAC arbitration Rules, the parties may agree on the place and language of arbitration; where the parties have not agreed on the place and language of arbitration or their agreement is ambiguous, CIETAC may decide on the place and language of arbitration, taking into account the specific circumstances of the case. Effective May 1 2005, CIETAC has specified in its arbitration Rules that the parties may agree to appoint arbitrators other than those on the CIETAC Panel of Arbitrators. The parties must agree on these matters.