Arbitration is a means to resolving disputes between commercial entities that parties commonly use, particularly in cross-border transactions. However, unless people frequently handle preservation measures (also termed “interim measures”) in arbitration, they may not be familiar with them.
Q: What types of interim measures are available under Chinese law?
A: Although there is no definition of “interim measures” under Chinese law, the term generally means that, before a court judgment or an arbitration award is rendered, an interested party may, where there is a chance that the property could be dissipated or the evidence destroyed, apply for temporary coercive measures against property, evidence, behaviour, among other issues. to ensure subsequent smooth hearing and enforcement procedures. China’s Civil Procedure Law and Arbitration Law set forth respective provisions on evidence preservation, property preservation and behavioural injunction. Furthermore, arbitration rules of all major arbitration institutions in China carry provisions on interim measures.
Q: When and to whom may applications for interim measures be made?
A: Pursuant to the Civil Procedure Law, an application can be filed for interim measures before the start or during the arbitration. The provisions of the Supreme People’s Court on Several Issues Concerning the Handling by People’s Courts of Cases for the Enforcement of Arbitration Awards further provide that, after an arbitration award has been rendered and during the judicial review for an application by the judgment debtor for the vacation or non-enforcement of the arbitration award, an application for interim measures may also be made.
Pursuant to the Civil Procedure Law and Arbitration Law, a party may directly apply to the competent court for interim measures before the start of arbitration. Once the proceeding begins, a party is required to submit the application for interim measures to the arbitration commission, which will then forward it to the court.
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Arthur Dong and Vicky Zhao are partners at AnJie Law Firm
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