Commercial Dispute Resolution in China: An Annual Review and Preview 2023

By Wolters Kluwer Hong Kong, Beijing Arbitration Commission and Beijing International Arbitration Commission

In 2022, with the pandemic continually impacted the world economy, coupled with the ongoing competition among major powers and the ever-changing geopolitical landscape, China’s commercial dispute resolution has adapted to the new economic form, presenting new changes and embracing new development.

In the field of commercial arbitration, the amendments to the Arbitration Law were being accelerated, as it has been included in the annual legislative review projects of the Standing Committee of the National People’s Congress. The Arbitration Association of China has been registered, attracting significant attention both within and outside the industry. Arbitration institutions, including the Beijing Arbitration Commission/Beijing International Arbitration Center, have improved systems and rules for online arbitration and hearings, innovated the supply of arbitration services, and promoted the development of arbitration practices. Meanwhile, China’s arbitration judicial review and the opening up of arbitration have also drawn a lot of attention and highlights.

In the field of commercial mediation, “headquarters-to-headquarters” online dispute resolution has been comprehensively promoted in response to the call of the times. This has driven the effective linkage of various dispute resolution mechanisms such as litigation, arbitration, and mediation, achieving good results. Various mediation organizations are constantly improving their rules and innovating their service models, which strongly promotes the development of commercial mediation.

In key professional sectors, the construction of the rule of law and dispute resolution are continuously adapting to the demands of new economic forms.

Since 2013, BAC/BIAC has been continuously organizing industry experts to write the Commercial Dispute Resolution in China: An Annual Review and Preview (hereinafter referred to as the “Annual Review”), which is published globally in both Chinese and English. The Annual Review and the Annual Summit based thereon have become an important window for people at home and abroad to understand the development of China’s commercial dispute resolution, establishing an important platform for dispute resolution professionals at home and abroad to communicate and interact.

The Commercial Dispute Resolution in China: An Annual Review and Preview (2023) continues to uphold the concept of being rooted in and serving practice. Through systematic reviews of industry overviews, key legal regulations and policies, analysis of model cases, observations on hot issues, and forecasts for the industry in the coming year, it provides support for market entities in making business decisions and enhancing risk prevention and dispute resolution capabilities.

• Language: English
• Publisher: Wolters Kluwer Hong Kong
• Release date: Oct 14, 2023
• ISBN: 9789887617204

Book preview

1.png

Commercial Dispute Resolution in China:

An Annual Review and Preview

2023

Beijing Arbitration Commission

Beijing International Arbitration Center

September 2023

Important Disclaimer

All rights reserved. No part of this work covered copyright may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying, recording, recording taping, or information retrieval systems) without the written permission of the publisher.

Copyright © 2023 Wolters Kluwer Hong Kong Limited

No person should rely on the contents of this publication without first obtaining advice from a qualified professional person. This publication is sold on the terms and understanding that (1) the authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication; and (2) the publisher is not engaged in rendering legal, accounting, professional or other advice or services. The publisher, and the authors, consultants and editors, expressly disclaim all and any liability and responsibility to any person, whether a purchaser or reader of this publication or not, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication. Without limiting the generality of the above no author, consultant or editor shall have any responsibility for any act or omission of any other author, consultant or editor.

Printed by Beijing Congreat Printing Co., Ltd

ISBN 978-988-76172-0-4

Editorial Committee

Chairman: GUO Wei

Vice Chairman: WANG Liming

Committee Member:

BAC/BIAC Editors

Editor in Chief: JIANG Lili

Executive Editor in Chief: CHEN Fuyong

Editors:

Preface

In 2022, with the pandemic continually impacted the world economy, coupled with the ongoing competition among major powers and the ever-changing geopolitical landscape, China’s commercial dispute resolution has adapted to the new economic form, presenting new changes and embracing new development.

In the field of commercial arbitration, the amendments to the Arbitration Law were being accelerated, as it has been included in the annual legislative review projects of the Standing Committee of the National People’s Congress. The Arbitration Association of China has been registered, attracting significant attention both within and outside the industry. Arbitration institutions, including the Beijing Arbitration Commission/Beijing International Arbitration Center (hereinafter referred to as BAC/BIAC), have improved systems and rules for online arbitration and hearings, innovated the supply of arbitration services, and promoted the development of arbitration practices. Meanwhile, China’s arbitration judicial review and the opening up of arbitration have also drawn a lot of attention and highlights.

In the field of commercial mediation, headquarters-to-headquarters online dispute resolution has been comprehensively promoted in response to the call of the times. This has driven the effective linkage of various dispute resolution mechanisms such as litigation, arbitration, and mediation, achieving good results. Various mediation organizations are constantly improving their rules and innovating their service models, which strongly promotes the development of commercial mediation.

In key professional sectors, the construction of the rule of law and dispute resolution are continuously adapting to the demands of new economic forms. In the field of construction industry, with the increasing impact of the Civil Code of the People’s Republic of China and the Interpretation of the Supreme People’s Court on Issues Concerning the Application of Law in the Trial of Cases Regarding Disputes Over Construction Contracts for Construction Projects (I), significant changes have occurred in the Chinese construction law system and its dispute resolution. On this basis, management norms for related sub-sectors are continuously introduced, forming a new pattern. In the field of real estate, policies are to some extent loosened, but market recovery still requires time. Disputes between real estate companies and financial institutions, investors, and homebuyers caused by the collapse of real estate companies remain a major issue that needs to be resolved urgently in this sector. In the field of energy, influenced by geopolitics, the global energy crisis, climate issues, and the trend of fossil energy transformation coexist. The number of energy dispute cases involving Chinese enterprises is on the rise, and energy legislation is centered around strengthening environmental protection and improving the business environment. In the field of finance, systemic and mass financial disputes continue to pose significant risks and pressure to dispute resolution institutions. The enactment of the Futures and Derivative Law of the People’s Republic of China and the issuance of multiple adjudication rules by the Supreme People’s Court are conducive to improving the professionalism of financial adjudication. In the field of investment, the amendments to the Bankruptcy Law and Company Law continue to be promoted. The Regulation of the People’s Republic of China on the Administration of the Registration of Market Entities and its rules for the implementation rules have been officially implemented, and local courts have issued white papers on trials and publicized model cases, which have improved the predictability of judgments. In the field of international trade, various bilateral and multilateral trade agreements have been signed or implemented. China actively uses mechanisms of WTO and other organizations to resolve international trade disputes, reflecting international trade cooperation and competition under the current international situation. In the field of intellectual property rights, preventing the abuse of intellectual property rights, achieving a balance between intellectual property protection and anti-monopoly, and protecting the intellectual property rights of data rights have become new focal issues. In the field of civil aviation, the National People’s Congress has approved the Beijing Convention, which will contribute to the safe development of civil aviation. The civil aviation is vulnerable to geopolitics and global situation, which means a high risk of international trade and cooperation disputes in the aviation field which calls for a new need for dispute resolution. In the field of film and entertainment, industry regulation remains strict, anti-corruption and anti-fraud efforts are strengthened, the forms of online film and television products are constantly enriched, and regulation is constantly improved. The emerging disputes have also promoted the development of dispute resolution in the film and entertainment industry.

Since 2013, BAC/BIAC has been continuously organizing industry experts to write the Commercial Dispute Resolution in China: An Annual Review and Preview (hereinafter referred to as the Annual Review), which is published globally in both Chinese and English. The Annual Review and the Annual Summit based thereon have become an important window for people at home and abroad to understand the development of China’s commercial dispute resolution, establishing an important platform for dispute resolution professionals at home and abroad to communicate and interact.

The Commercial Dispute Resolution in China: An Annual Review and Preview (2023) continues to uphold the concept of being rooted in and serving practice. Through systematic reviews of industry overviews, key legal regulations and policies, analysis of model cases, observations on hot issues, and forecasts for the industry in the coming year, it provides support for market entities in making business decisions and enhancing risk prevention and dispute resolution capabilities.

The publication of the Annual Review could not have been achieved without the outstanding contributions of industry experts involved in its writing and review, and the continuous support from vast readership. BAC/BIAC extends its sincere gratitude to everyone who has been attentive and supportive of the Annual Review. BAC/BIAC looks forward to continuing to work with industry peers and readers, to further promote the continuous development and influence of the Annual Review, and to further advance the sharing of knowledge and industry exchanges in the resolution of commercial disputes in China.

Editorial Board of Commercial Dispute Resolution in China:

An Annual Review and Preview

September 2023

Table of Content

Annual Review on Commercial Arbitration in China (2023)

Helen H. SHI / 1

Annual Review on Commercial Mediation in China (2023)

FEI Ning , YANG Xueyu & YANG Xiaofu / 55

Annual Review on Construction Dispute Resolution in China (2023)

CUI Jun, JIA Huaiyuan & ZHAO Hang / 95

Annual Review on Real Estate Dispute Resolution in China (2023)

MA Zhicheng, MA Jingyu & SUI Qingrui / 121

Annual Review on Energy Dispute Resolution in China (2023)

ZHANG Weihua (Leslie ZHANG) / 159

Annual Review on Investment Dispute Resolu

Annual Review on Investment Dispute Resolution in China (2023)

ZHU Huafang, JIANG Hong & WU Ying / 205

Annual Review on International Trade Dispute Resolution in China (2023)

LIAO Ming, YU Zhiguo & ZHOU Yarui / 261

Annual Review on Financial Dispute Resolution in China (2023)

LYU Qi & SONG Shaoyuan / 291

Annual Review on Intellectual Property Dispute Resolution in China (2023)

XIE Guanbin, LI Fengfeng & LI Chun / 321

Annual Review on Film, Television and Entertainment Dispute Resolution in China (2023)

TIAN James & ZHANG Jianhao / 353

Annual Review on Civil Aviation Dispute Resolution in China (2023)

GAO Feng, JIN Zhe & LI Zhihong / 391

About The Authors

Annual Review on Commercial Arbitration in China (2023)

Helen H. SHI | Helen is the Director and a Partner at the Beijing office of Fangda Partners, the Vice President of the ICC Court of Arbitration. She used to serve as the co-chair of the IBA Asia Pacific Arbitration Group and a member of the HKIAC’s Proceedings Committee. She is also a listed arbitrator at a number of arbitration institutions, including China International Economic and Trade Arbitration Commission. Having been praised as an icon of arbitration by Chambers & Partners, she has handled more than 100 cases in a wide range of industries, including share transfer, mergers and acquisitions, oil and gas, hospitality and construction. As an advocate, she has represented clients under ICC, SIAC, HKIAC, CIETAC and UNCITRAL Arbitration Rules. Sitting as an arbitrator, she has presided over more than 50 cases. She has also provided legal expert opinion and testified as Chinese legal expert before courts in Hong Kong and Canada and in HKIAC arbitrations and an ad hoc arbitration seated in London. Ms. Shi is admitted to practice in both the PRC and the State of New York.

Annual Review on Commercial Mediation in China (2023)

FEI Ning | Mr. Fei is the Managing Partner at Hui Zhong Law Firm. He sits as arbitrator at Chinese and international arbitration institutions, including China International Economic and Trade Arbitration Committee (CIETAC), Shenzhen Court of International Arbitration (SCIA), International Court of Arbitration of the ICC (ICC Court), Hong Kong International Arbitration Centre (HKIAC), Singapore International Arbitration Centre (SIAC), and Korean Commercial Arbitration Board (KCAB). He is also a member of SCIA Advisory Committee and Vice-Chair of IPBA Dispute Resolution and Arbitration Committee. Mr. Fei is announced as the Vice-Chair of the ICC Belt and Road Commission in 2022. During 2013 – 2019, he was a Council Member of HKIAC, a title vested to persons from mainland China for the first time in history. In January 2023, Mr. Fei Ning was appointed by the Dubai International Arbitration Centre (DIAC) as a member of the DIAC Arbitration Court and was reappointed by the Chinese Arbitration Association (CAA) as a member of the CAA International Arbitration Center (CAAI) and its Vice-President. In February 2023, Mr. Fei Ning was elected as a Governing Board Member of the International Council for Commercial Arbitration (ICCA).

YANG Xueyu | Ms. Yang is the Managing Partner at Hui Zhong Beijing Office, an arbitrator of Hong Kong International Arbitration Centre (HKIAC) and the Shenzhen Court of International Arbitration (SCIA), and a specialist mediator of the Singapore International Mediation Centre (SIMC). She devotes her focus to international commercial and investment arbitration as well as cross-border litigation. She has extensive experience handling complex contentious matters conducted at the International Centre for Settlement of Investment Disputes (ICSID), the Permanent Court of Arbitration (PCA), ICC, HKIAC, SIAC, CIEATC, BAC and different levels of domestic courts including the Supreme People’s Court of China. The Global Arbitration Review (GAR) mentioned in its comments that Ms. Yang is impressively responsive, smart and thorough. Ms. Yang has been ranked as China’s Elite Lawyer (PRC Firms) by China Business Law Journal (2022).

YANG Xiaofu | Ms. Yang is the Partner at Hui Zhong Law Firm. She is specialized in commercial litigation and arbitration. She has represented both domestic and foreign clients before various levels of PRC courts including but not limited to Supreme People’s Court and courts of Beijing, Shanghai, and Guangdong, as well as in arbitration institutions including CIETAC, BAC, SHIAC, SCIA, SHAC, HKIAC on disputes arose from finance and investment, corporation financing and equity, joint venture, insurance and reinsurance, international sales good, restate development, PPP, commercial lease etc. She works as the assistant lecturer for the course Case Study of Arbitration in Peking University from 2019 to 2022.

Annual Review on Construction Dispute Resolution in China (2023)

CUI Jun | Mr. Cui is acknowledged as the most active practitioner in international construction claim and dispute settlement. After studying at Law School of Peking University, he had worked in Middle East, Africa, Asia and Europe on international construction projects for 21 years since 1989. he is currently the managing director of Frontier and Partners, a practice specialising in international construction law. He is the panel arbitrators of China International Economic and Trade Arbitration Commission (CIETAC), China Marine Arbitration Commission (CMAC), Beijing Arbitration Commission (BAC), China-Africa Joint Arbitration Center etc. and the fellow of the Chartered Institute of Civil Engineering Surveyors (UK). His current caseload involves contract negotiation, construction claim for international construction projects, dispute resolution such as dispute adjudication board, domestic and international arbitration. He is the author of 13 books including "Principle and Practice of FIDIC Contract, Principle and Practice of FIDIC Subcontract", translation of Construction Contract Claim and the others and more than 80 articles and papers dealing with aspects of international construction contracts.

William JIA Huaiyuan | William is a Senior Partner at DeHeng Law Offices (Beijing) and the Managing Partner of DeHeng Dubai Office. He acts as arbitrators in China International Economic and Trade Arbitration Commission (CIETAC), China Marine Arbitration Commission (CMAC), Beijing Arbitration Commission (BAC) etc., member of PPP expert panel of National Development and Reform Commission and Ministry of Finance of China. Since 2015, he has been ranked as Band 1 of Public Infrastructure Financing by the International ranking system LEGALBAND and was named a Star of Legal Practitioner in Infrastructure & Project Financing. He was called in 1993 and has been a lawyer for over 30 years and his practice covers international construction and engineering, project financing and dispute solution over 40 countries and regions in Middle East, Africa, Europe, North America, Latin American, Australia, Asia. He often acts on behalf of clients to deal with the arbitration and litigation cases in LICA, ICC, CIETAC, DIAC (Dubai), SIAC (Singapore), Laos (Court), etc. He has experience as an adjudicator of Dispute Adjudication Board (DAB) in international construction projects as well.

Dr. ZHAO Hang | Dr. Zhao is a Senior Consultant at Commerce & Finance Law Offices and an arbitrator of China International Economic and Trade Arbitration Commission (CIETAC), Beijing Arbitration Commission (BAC), Shanghai International Arbitration Center (SHIAC), Shenzhen Court of International Arbitration (SCIA), Hong Kong International Arbitration Center (HKIAC). As the presiding or sole arbitrator, he has tried and concluded hundreds of arbitration cases. With his extensive experience in arbitration, he was ranked by Chambers and Partners as the Most in Demand Arbitrators in greater China region. ZHAO Hang has a longstanding practice and is focused on construction-related arbitration, often acting as sole or presiding arbitrator in cases, Chambers commented, his skillful handling of cases with cross-border elements is also notable.

Annual Review on Real Estate Dispute Resolution in China (2023)

MA Zhicheng | Mr. Ma is a Senior Partner at Jincheng Tongda & Neal Law Firm, leader of the real estate and construction team, researcher of the Professional Committee on Real Estate Arbitration of China Academy of Arbitration Law and member of the Legal Committee of the National Association of Financial Market Institutional Investors. With over 25 years of experience in the industries of real estate and finance, Mr. Ma has extensive practice experience in handling comprehensive land development, project investment and liquidation, M&A and reorganization, cooperative development, real estate operation, real estate finance and other businesses covering such various projects as residence, commercial offices, tourism, elderly care and theme parks. Mr. Ma was a legal adviser to the Ministry of Natural Resources (MNR) of long-term, and during which he participated in the legislation activity for the MNR. In addition, based on his deep understanding of the financial industry and accurate management of risk control, Mr. Ma has accumulated rich and good achievements in asset management, securities investment and financial dispute resolution. He has participated in several research projects organized by the Asset Management Association of China and the National Association of Financial Market Institutional Investors and lectured at training sessions as a lecturer on these occasions.

MA Jingyu | Mr. Ma is a Partner at Jincheng Tongda & Neal Law Firm. He has practiced law for over 10 years, specializing in dispute resolution in the areas of real estate, private equity, etc. Mr. Ma served as general counsel for the retail business division of CP Group. He has handled dozens of M&A projects for well-known real estate developers and dispute resolution in the areas of real estate and private equity, gaining rich experience in the practice of dispute resolution.

SUI Qingrui | Miss Sui is an attorney of Jincheng Tongda & Neal Law Firm. She worked for a large-scale real estate developer as a legal professional for many years, mainly focusing on the transfer, development and operation of real estate. Miss Sui has handled a large number of cases concerning real estate transfer and commercial real estate operation and is familiar with the modes, systems and processes of development and operation of real estate companies, accumulating extensive experience in the real estate industry.

Annual Review on Energy Dispute Resolution in China (2023)

ZHANG Weihua (Leslie ZHANG) | Leslie is the General Counsel and Vice-President of United Energy Group Limited, a Hong Kong listed company, and was a former director of the Project Management Section under the Legal Department of China National Offshore Oil Corporation. Leslie has extensive experience in many global-scale cross-border M&A transactions and was nominated by the SASAC as the Cross-Border Transactions Expert. Leslie is also named by Legal 500 and Thomson Reuters ALB as one of the best general counsels in Asia Pacific for years. He is an active board member of the Association of International Energy Negotiators (AIEN, formally, the Association of International Petroleum Negotiators or AIPN) and a member of the Drafting Committee for AIEN. Leslie serves as a visiting professor or lecturer in a number of universities including the China University of Political Science and Law and the Beijing Foreign Studies University. He is also engaged as a professor and researcher in a number of research institutions and appointed as the independent director of some A-share listed companies. Leslie is currently listed on the panels of arbitrators of the BAC/BIAC, SHIAC and Wuhan Arbitration Commission (WHAC). Leslie has extensive experience in cross-border M&As / investments and the international oil and gas industry. Leslie is the author of many popular books including "Cross-Border Mergers and Acquisitions – A Legal and Practical Guide, Mergers and Acquisitions: Great Era – The Capital Strategies for Growth, Ten Lessons to be Learned for Cross-Border M&A, Ten Advanced Lessons for Cross-Border M&A, Cross-Border Mergers and Acquisitions in the Oil and Gas Industry – A Legal and Practical Guide, and The Way to M&A Success. He also co-authored three English books on international oil and gas practices, including Joint Operating Agreements: Challenges and Concerns from Civil Law Jurisdictions and Understanding Joint Operating Agreements, and Local Content for the International Petroleum Industry".

Annual Review on Investment Dispute Resolution in China (2023)

ZHU Huafang | Ms. Zhu is a Partner at Hui Zhong Law Firm. She is currently listed on the panels of arbitrators of several arbitration institutions. Ms. Zhu has over 20 years of intensive experience in managing legal risks and handling commercial litigation and arbitration matters. She was continuously named as one of China’s Elite 100 Lawyers (The A-List) by China Business Law Journal, was accoladed as Leading Lawyer in Dispute Resolution by Chambers Global and Chambers Asia-Pacific, and was named as one of 2022 ALB China Top 15 Litigators by Asian Legal Business. Ms. Zhu has represented many Central SOEs and financial institutions before the Supreme People’s Court, local courts at different levels and various leading arbitration institutions and in most cases achieved satisfactory results for her clients. Ms. Zhu worked for Sinochem Group, a Fortune 500 company and is familiar with the business and legal practice in many fields, such as energy, chemical industry, real estate, finance, and agriculture. She can quickly and accurately understand and respond to the specific need and focuses of the clients, reflect on the problems from the perspectives of both external and in-house counsel, and formulate an appropriate dispute resolution strategy. Ms. Zhu has published more than 50 articles on practical arbitration issues and has led the drafting of Observations on the Practice of Judicial Review of Arbitration in China (2018/2019/2020/2021/2022).

JIANG Hong | Ms. Jiang is a Partner at Global Law Office and executive director of the China Academy of Arbitration Law. She has 25 years of experience in the research and practice of commercial arbitration. Ms. Jiang is well versed in arbitration laws and rules and has extensive experience in handling complex and high-profile domestic and international arbitration cases. She had worked in CIETAC and CMAC for a long time, and is currently listed as panel arbitrator in a number of domestic and international arbitration organizations, including CIETAC, CMAC, SHIAC, SCIA, HKIAC, AIAC, SAC, GZAC, CCAC and HIAC.

WU Ying | Ms. Wu is a Partner at Hui Zhong Law Firm and has intensive experience in cross border dispute resolution. She specializes in handling foreign-related commercial disputes governed by the Chinese courts, Chinese arbitration institutions and international arbitration institutions and managing overseas litigation proceedings. Ms. Wu previously worked for two leading international law firms for many years and has maintained long term cooperation with various foreign law firms. She has represented many domestic and foreign clients in a wide range of disputes, including financing, international trade, joint venture, bank guarantee, and EPC disputes. Ms. Wu is the ICC YAF (Young Arbitrators Forum) Representative of North Asia from 2021-2023 and is currently listed on the panels of arbitrators of Nanning Arbitration Commission.

Annual Review on International Trade Dispute Resolution

in China (2023)

LIAO Ming | Mr. Liao is a Partner at Tahota (Beijing) Law Firm, with the main practicing areas of international trade and dispute resolution. He has been served as the leading counsel or participated in nearly 100 cases of representing Chinese and foreign clients in responding to international trade investigations, or in resolving cross-border trade and investment disputes. Mr. Liao is currently listed on the panels of arbitrators/mediators of Beijing Arbitration Commission/Beijing International Arbitration Center (BAC/BIAC), China-Africa Joint Arbitration Center(CAJAC), Hong Kong International Arbitration Centre (HKIAC), Korean Commercial Arbitration Board (KCAB), Singapore International Mediation Centre (SIMC), Asian International Arbitration Centre (AIAC), Shanghai International Economic and Trade Arbitration Commission/Shanghai International Arbitration Center (SHIAC), Shanghai Arbitration Commission (SHAC), Hainan International Arbitration Court (HIAC), Tianjin Arbitration Commission, Chongqing Arbitration Commission, and many other Chinese and foreign arbitration institutions.

YU Zhiguo | Mr. Yu is a Partner at Beijing Zhonglun Law Firm. He is a valued resource for clients seeking to navigate the legal complexities of China’s trade and investment laws, economic sanctions and export controls. He has 20 years of experience advising and implementing regulatory compliance with Chinese economic and trade laws. Mr. Yu also designs and helps implement trade compliance programs including Anti-dumping/Countervailing and export control and economic sanctions, and advises clients concerning customs matters, including rules of various free trade agreements. He has extensive experience in a wide variety of industries, including agriculture, chemicals, energy, manufacturing and industrial, metals and telecommunications. Before joining the Firm, he was a senior legal advisor of the Ministry of Commerce of China, responsible for trade remedy investigations, international trade and investment dispute settlements, international rules negotiations, and Free Trade Agreement negotiations. Mr. Yu obtained master’ degrees at Georgetown University Law Center and the Law School of University of International Business and Economics. He also served as an expert of the Institute for International Dispute Settlement of Tsinghua University, a fellow of the Institute of International Economic Law of Georgetown University Law Center, a member of the Institute of Export & International Trade, and an arbitrator of Tianjin Arbitration Commission.

ZHOU Yarui | Ms. Zhou is a Partner at Tahota Law Firm, Beijing Office. Ms. Zhou focuses her practice area in dispute resolution, especially in cross-border arbitration, litigation and enforcement. She is specialized in handling various kinds of disputes involving shareholder dispute, equity transfer, investment dispute, international trade, recognition and enforcement of court judgments/arbitral awards worldwide. Ms. Zhou has represented domestic and foreign clients in arbitration cases in major international arbitration centers including CIETAC, BAC, HKIAC, SIAC. She has advised many domestic and multinational companies such as Daimler AG, Berjaya Group, Aptiv, OPPO, China Huarong and Chengda Group. Ms. Zhou is an Mjur graduate from the University of Oxford and receives her LL.B degree from China University of Political Science and Law. She is dual qualified in both PRC and England &Wales. She is a native Chinese speaker and fluent in English. Ms. Zhou is currently a mediator at the Sichuan Mediation Centre of the China Council for the Promotion of International Trade (Sichuan Pilot Free Trade Zone Mediation Centre) and an adjunct instruction at China University of Political Science and Law.

Annual Review on Financial Dispute Resolution in China (2023)

LYU Qi | Ms. Lyu is the Chief Legal Counsel of Jianfa (Hainan) Legal Service Co., Ltd. She achieved her LL.M degree from Renmin University in 1999 and from TEMPLE University in 2019. She has been with financial legal area for over 20 years with bilingual working skills in Chinese and English. She is listed as arbitrator among the panel of Beijing Arbitration Center and Hainan Arbitration Center, while taking the role of deputy general secretary in China Banking Law Society. Ms. Lyu had been awarded as Outstanding Individual by National Department of Justice (2016) and was retained as Legal Counsel for China Banking Association. Recent years, she had been invited to given seminars and training for Law School of Peking University, China International Economic and Trade Commission, China Banking Association, Beijing Banking Regulatory Bureau, and World Bank on multiple legal themes covering Supply Chain Finance, Wealth Management, Financial innovation, Fintech, as well as Intellectual Property Finance. Her recent publications include "Brief Analysis on Structural Design and Judicial Approaches over Bottom Returning Setting in L.L.P. in Wealth Management (2018) and Discussion on Legal Issues in the Securitization of Credit Assets in China (2014), and her translation Principles of Banking Law" (Oxford Publishing House published in 2023).

SONG Shaoyuan | Mr. Song is a special-retained legal counsel of Jianfa (Hainan) Legal Service Co., Ltd. With a Master of Law from Renmin University of China and with 12 years of legal practicing experience, he mainly engages in legal services in financial fields such as banking, trust and asset management. Mr. Song has worked in an intermediate court of Beijing for 7 years ranking as first-grade judge with experience of trial over 1,000 various civil and commercial cases. He has worked in the Department of Legal Affairs of the head offices of nationally large commercial banks for nearly 5 years, engaged in major project restructuring and handling major risk events, etc.

Annual Review on Intellectual Property Dispute Resolution

in China (2023)

XIE Guanbin | Mr. Xie is a Senior Partner at Lifang & Partners. His major practice areas include intellectual property dispute resolution, antitrust and competition law, and legal consulting for hi-tech companies. He has gained a good reputation in these areas with his solid academic background, government experience and professional dedication.

Mr. Xie once worked for the State Science and Technology Commission and the State Council Intellectual Property Conference Office, where he participated in the drafting and revision of state intellectual property and technology legislation and policies. He participated in bilateral IP negotiations with the US, Japan, and the EU. From 1999 to 2002, he was the Director of Huake Judicial Examination Centre for Intellectual Property, an appraisal institution established with the approval of the Ministry of Justice. In 2002, he founded Lifang & Partners. Mr. Xie is currently a member of the Expert Consultation Committee (Beijing) of the IP Case Guidance and Study Base of the Supreme People’s Court, legal counsel to the CPC Beijing Municipal Committee, an arbitrator for WIPO, an expert of HKIAC and ADNDRC, an international commercial arbitrator of the Beijing Arbitration Commission, an arbitrator of the Wuhan Arbitration Commission, an arbitrator of the Nanjing Arbitration Commission, an arbitrator of the Chongqing Arbitration Commission, an arbitrator of the Zhuhai Arbitration Commission, and an expert of the Domain Name Disputes Resolution Center at CIETAC.

LI Fengfeng | Ms. Li is a Partner at Lifang & Partners. Her main practice areas include intellectual property and competition law, civil and commercial disputes resolution. Ms. Li previously worked at two intermediate courts for nearly a decade, during which she presided over or participated in nearly 1000 cases, including civil cases, commercial cases and intellectual property cases. Since joining in Lifang, Ms. Li has participated in many important litigations and arbitrations covering intellectual property, anti-unfair competition and antitrust law, serves a number of well-known internet enterprises, software enterprises, central enterprises and foreign enterprises among Global 500, and also serves as a legal adviser for several companies. Through handling so many cases, she has accumulated abundant experience in both litigation and arbitration. By virtue of her profound legal knowledge, rich trial experience and strong professional ethics can be observed through her work, Ms. Li has gained much praise from clients. In 2021, Ms. Li is awarded the Legal 500 recommended lawyers in the field of intellectual property. Ms. Li currently serves as a mediator of the Beijing Association for Alternative Dispute Resolution, a mediator of Beijing Sunshine Intellectual Property Mediation Center, and an arbitrator of the Beihai Arbitration Commission/Beihai Court of International Arbitration.

LI Chun | Ms. Li is a Senior Associate at Lifang & Partners. Her main practice areas include intellectual property and corporate compliance, and she is skilled in handling copyright, unfair-competition litigation and non-litigation matters. For copyright practice, Ms. Li has represented several well-known software companies to deal with software protection in China, including civil litigation and administrative complaints, and represented press, education and technology companies in work infringement cases. Additionally, Ms. Li has represented domestic well-known platforms in unfair-competition cases. For corporate compliance, Ms. Li has assisted domestic well-known enterprises in communication and semiconductor industry in institutional improvement of IP, U.S. export control and data compliance, and deeply involved in the construction of trade secret system for domestic well-known Internet enterprises, and also serves as a legal adviser for several companies.

Annual Review on Film, Television and Entertainment Dispute Resolution in China (2023)

TIAN James | James is a Senior Counsel at Beijing Vlaw Law Firm. He has been worked for multinational companies over twenty years and acted as general counsels in PRC regions. At present, he is one of the arbitrators at Beijing Arbitration Commission/Beijing International Arbitration Centre and Qingdao Arbitration Commission respectively. He is also appointed as research fellow at China Arbitration Institute under China University of Political Science and Law. He was also acted as a China Specialist at Singapore International Mediation Centre as well as mediator at Mediation Centre under China International Chamber of Commerce, Director at China Group Companies Association, handling over one hundred and seventy cases for arbitration and mediation.

ZHANG Jianhao | Mr. Zhang is a Partner at Beijing Vlaw Law Firm. He is a board member of culture and media department, Chaoyang District Lawyers’ Association, Beijing, and he has been appointed as outside legal counsel for a number of companies in the private sector, especially of the film, TV and entertainment industry. He has extensive experience in investment and financing for the practice of film, TV and entertainment, providing with legal services in this regard. Furthermore, he has also acted as counsel on behalf of his clients in the film, TV, entertainment and media industry before the courts and arbitral tribunals.

Annual Review on Civil Aviation Dispute Resolution in China (2023)

GAO Feng | Mr. Gao is an independent arbitrator at Beijing Arbitration Commission / Beijing International Arbitration Center, and currently listed on the panels of arbitrators of China International Economic and Trade Arbitration Commission, Shenzhen Court of International Arbitration, China Maritime Arbitration Commission, Shanghai International Economic and Trade Arbitration Commission, Shanghai Arbitration Commission, Nanjing Arbitration Commission, Shenyang Arbitration Commission, Hainan International Arbitration Court, Guangzhou Arbitration Commission

and other domestic arbitration commissions. He is a permanent member of council at the Aviation Law Research Institute of China Law Society, a researcher at the China Arbitration Institute at the China University of Political Science and Law, a visiting professor at the Civil Aviation Management College of China, an off-campus postgraduate supervisor at the law schools of China Civil Aviation University and University of International Business and Economics.

JIN Zhe (Jason JIN) | Jason is a Partner at Grandall Law Firm Beijing office, where he leads the Aviation Team. Working for almost 20 years, he specialises in aviation industry and has tremendous experience in handling aviation related disputes. He has represented both Chinese and foreign clients in dozens of arbitration and litigation cases in relation to aircraft charter, aviation insurance, aviation liability compensation and major aviation accidents. Jason is currently listed on the panel of arbitrators of Shanghai International Economic and Trade Arbitration Commission (Shanghai International Arbitration Center) and China Maritime Arbitration Commission, as well as the panel of Talented Foreign Related Lawyers of Beijing Lawyers’ Association. His team has been awarded as Law Firm in Aviation by China Business Law Journal and he himself has been ranked as the recommended lawyer in aviation finance sector by Chambers for multiple times.

LI Zhihong | Mr. Li is currently a Partner at RRDS Shanghai Law Firm and director of Aviation Team. He is listed on the panels of arbitrators of Shanghai International Economic and Trade Arbitration Commission (Shanghai International Arbitration Center) and Zhuhai Court of International Arbitration. He is also a mediator of the first Aviation Dispute Mediation Center in China, Deputy Secretary-General of Aviation Law Research Institution of China Law Society, a member of Aviation Law Research Institution of Shanghai Law Society, postgraduate students’ part-time tutor of East China University of Political Science and Law, and part-time researcher of Civil Aviation University of China and Binzhou College. Mr. Li was in the first batch of undergraduates specialized in aviation law organized jointly by Civil Aviation Administration of China and Peking University, and worked as legal counsel, sales contract manager, etc., in airlines and aircraft manufacturing enterprise in his career life. Mr. Li’s areas of practice include aviation manufacturing, public air transportation, general aviation and extended legal services. He is now the legal counsel of several leading aviation manufacturing enterprises, airlines, airports and general aviation enterprises. Mr. Li has close connection with the aviation industry at home and abroad.

Annual Review on Commercial Arbitration in China (2023)

Helen H. SHI¹

I. OVERVIEW

In 2022, the global economy has not recovered from the shock of the pandemic of century, not only facing multiple challenges such as supply bottlenecks, inflation, debt risks and policy uncertainties, but also being affected by geopolitics and great power competition. Global industrial chains and supply chains have suffered shocks, commodity prices continue to rise, and energy supply tensions and other problems are particularly prominent, which have been further highlighted and aggravated by the persistent impact of the pandemic. The growth rate of major economies in the world has generally slowed down, and the uncertainties about economic recovery have significantly increased. In the complex international political and economic environment, there are both challenges and opportunities in international commercial dispute resolution. In particular, arbitration, as an important way to resolve disputes in international business transactions, has assumed the important role of resolving commercial disputes and optimizing the business environment. Facing the challenges brought by the complex and turbulent situation of the world economy, commercial arbitration in China in 2022 continued to rise to the challenge, achieving innovation and progress in aspects of legislation, judicial and institutional practice, and providing adequate service support and strong judicial protection for domestic commerce and economic development.

China’s legislative, administrative and judicial authorities continue to support the development of arbitration, promote the arbitration legislation, improve the construction of arbitration institutions, and regulate judicial review of arbitration. First, the revision of Arbitration Law of the People’s Republic of China (hereinafter referred to as the Arbitration Law) has been accelerated. In 2018, the revision of the Arbitration Law entered the legislative plan; in 2021, the Ministry of Justice drafted and issued the Arbitration Law (Draft for Public Comment); in April 2022, the Standing Committee of the National People’s Congress included the revision of the Arbitration Law in its annual legislative review project, and the reform of the Arbitration Law was steadily progressing amidst the expectations and concerns of all sectors of society. Second, after years of discussion and preparation, the Arbitration Association of China has finally been established, with the expected function of developing arbitration industry norms and strengthening the supervision of practitioners. Third, the Supreme People’s Court (the SPC) has promulgated a series of judicial interpretations, guiding opinions and typical cases to strengthen the judicial protection of arbitration and uphold the principle of judicial modesty, creating a favorable judicial atmosphere for the long-term development of arbitration industry.

In terms of arbitration institutions’ practice, Chinese arbitration institutions are constantly improving their arbitration rules, innovating hearing technologies, and strengthening regional and international cooperation to continuously improve arbitration’s capacity of serving the national economic development and overall opening-up. First, many arbitration institutions have improved online arbitration rules and widely applied internet information transmission, block chain, cloud storage and other new technologies to improve the efficiency of hearing cases. Second, multiple arbitration institutions have enhanced their international cooperation, for example, the Shenzhen International Arbitration Institute and the Singapore International Mediation Centre have created a new model of cooperation, which will usher the arbitration in China in a new era featuring domestic and international integration and mutual support.

In this Annual Report, we summarize the latest developments in 2022 in the field of commercial arbitration in China from several perspectives, including arbitration-related laws and regulations, arbitration rules, the latest practice in the judicial review of arbitration cases, and the most topical issues amongst scholars and practitioners.

II. MAJOR UPDATES OF LAWS, REGULATIONS AND OTHER NORMATIVE DOCUMENTS

A. New/Revised Laws, Regulations, and Other Normative Documents and Guiding Cases

1. Revision of the Arbitration Law is accelerating

The current Arbitration Law was promulgated in 1994,² nearly thirty years ago. Since the Ministry of Justice promulgated the Arbitration Law of the People’s Republic of China (Revised) (Draft for Comment) on 30 July 2021 (the "Arbitration Law (Revised Draft)"), the revision of the Arbitration Law has attracted widespread interest from various sectors of the community. The content and impact of the Arbitration Law (Revised Draft) were previously summarized in detail in the 2022 Annual Report and will not be repeated here.

In May 2022, the Standing Committee of the National People’s Congress promulgated the 2022 Legislative Work Plan, listing the Arbitration Law as one of items for legislative review. On 5 July 2022, the General Office of the State Council issued the 2022 Legislative Work Plan of the State Council, indicating the intention that the Arbitration Law (Revised Draft) be presented for deliberation and review by the Standing Committee of the National People’s Congress.

It has been reported that, as of August 2022, nearly 3,000 opinion pieces from a wide arrange of community sectors, with over one million words, have been presented to the law revision department. The enthusiastic feedback from all walks of life on the revision clearly demonstrates that arbitration, as a professional and efficient method of dispute resolution, is playing an important role in the in-depth development of China’s market economy and its increasing opening up to outside investment, and has received the keen interest throughout the community. The core position of the Arbitration Law in China’s system of dispute resolution system is also increasingly evident.

2. The Arbitration Association of China was established after years of preparation

On 14 October 2022, the Arbitration Association of China was finally registered with the Ministry of Civil Affairs after years of discussions and preparations. According to the registration information, the Arbitration Association of China, registered as a social organization, falls within the jurisdiction of the Ministry of Justice. Its business scope covers rule formulation, self-discipline supervision, credit construction, member service, business training, theoretical research, exchange and cooperation, publicity and promotion.

As early as 1994, when the Arbitration Law was promulgated, Article 15 clearly stipulated the attributes and basic functions of the Arbitration Association of China: "The Arbitration Association of China is a social organization as a legal person. An arbitration commission shall be a member of the Arbitration Association of China. The Articles of Association of the Arbitration Association of China shall be formulated by the National Congress of the Association. The Arbitration Association of China is a self-disciplinary organization of the Arbitration Commission and shall, in accordance with its articles of association, supervise the disciplinary violations committed by the Arbitration Commission, its members and arbitrators. The Arbitration Association of China shall formulate arbitration rules in accordance with this Law and the Civil Procedure Law." In November of the same year, the General Office of the State Council issued the Notice on Preparing for the Reorganization of Arbitration Institutions and the Establishment of the Arbitration Association of China, requiring the establishment of the Arbitration Association of China. For more than 20 years, there were many disputes from both theoretical and practical perspectives about the nature and function of the Arbitration Association of China. Despite ongoing preparatory efforts and attempts to realize the institutional vision of the Arbitration Law, the Arbitration Association of China, designated as a self-regulatory organization of arbitration commissions, was not established.

On 31 December 2018, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the Several Opinions on Improving the Arbitration System and Enhancing the Credibility of Arbitration (the Several Opinions), reiterating that "the Arbitration Association of China shall be established upon study, so as to give full play to the role of the Association in connecting the government and industry and serving the arbitration commissions, actively coordinate the relationship between arbitration and other industries, and organize the exchange, cooperation and personnel training of arbitration business at home and abroad." On 19 November 2021, the Reply of the Ministry of Justice to the Suggestions No. 3444 of the Fourth Session of the 13th National People’s Congress states that "The establishment of the Arbitration Association of China is an important task specified in the Arbitration Law and the Several Opinions. The Ministry of Justice attaches great importance to the preparatory work for the establishment of the Arbitration Association of China and has set up a preparatory leading group for the Association. The Ministry of Justice is speeding up the preparatory work for the establishment of the Association and striving to establish the Association as soon as possible so as to give full play to the role of the Association in formulating the standards for the arbitration industry and strengthening the supervision and punishment of violations of disciplines by arbitration practitioners."

In 2022, the Arbitration Association of China was finally registered and established, and Article 15 of the Arbitration Law has finally been implemented after more than 20 years. Scholars and practitioners alike hold high expectations for the Arbitration Association of China, hoping that it will strengthen the supervision of the arbitration industry, standardize the operation of arbitration institutions, and ensure the orderly development of arbitration. The operating rules of the Arbitration Association of China are yet to be issued, and we await further clarification as to the legal nature, role and development plans for the Association.

3. The Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and of the Macao Special Administrative Region came into effect

Following the signing of the Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings between the Mainland and the Hong Kong Special Administrative Region (SAR) in 2019, the Mainland and the Macao SAR signed the Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and of the Macao Special Administrative Region (the Arbitration Preservation Arrangement) on 25 February 2022. The Arbitration Preservation Arrangement, which has been in force in both places since 25 March 2022, specifies the types of preservation available, the applicable arbitration procedures, the procedures for applying for preservation, and the handling of preservation applications.

The Arbitration Preservation Arrangement will operate in natural conjunction with the Arrangement on Mutual Recognition and Enforcement of Arbitration Awards between the Mainland and Macao Special Administrative Region (the Arrangement on Mutual Recognition of Arbitration Awards) implemented with effect from 1 January 2008. For example, the Arrangement on Mutual Recognition of Arbitration Awards already covers preservation after an arbitration award is made and before or after a court accepts an application for recognition and enforcement of an arbitration award, and the Arbitration Preservation Arrangement further extends mutual assistance between the Mainland and Macao SAR to preservation occurring before and during the arbitration proceedings, thus ensuring that mutual assistance between the Mainland and Macao SAR in preservation now covers the entire arbitral process.

The effective implementation of the Arbitration Preservation Arrangement is another instance of the successful implementation of the one country, two systems model in the judicial area, and is expected to deepen the convergence of judicial rules for civil and commercial affairs between the two places.

4. The Minutes of the National Court Conference on the Trial of Foreign-related Commercial and Maritime Cases released by the SPC

The Minutes of the National Court Conference on the Trial of Foreign-related Commercial and Maritime Cases (the Minutes), effective as of 24 January 2022, provides the latest guidance on the practical operation of the foreign-related commercial section, maritime section and judicial review of arbitration cases.

With regard to the judicial review of arbitration cases, the Minutes provide detailed interpretation of the rules for cases concerning the application for confirmation of the validity of arbitration agreements, cases concerning the setting aside or non-enforcement of arbitration awards, and cases concerning the application for recognition and enforcement of foreign arbitration awards, and specify the types of rulings that may be appealed or retried in cases involving judicial review of arbitration awards. The Minutes clarify common practical problems in the past judicial review practice, particularly in relation to confirmation of the validity of arbitration agreements, which manifests