Applicant D (the claimant in this arbitration case) is a Chinese enterprise, while the respondent V (the first respondent in the case) is an enterprise registered in Ontario, Canada. D and V signed a series of auto parts production, export and purchase agreements, agreeing that D would produce according to the orders issued by V and entrust the second respondent in the arbitration case – a Chinese enterprise, S – to handle customs clearance and other export procedures, which would eventually be used to supply to Chrysler in the US.

In addition, D and V signed several contracts on the development and production of moulds. The agreements and contracts all contained arbitration clauses that referred to Shanghai International Arbitration Centre for arbitration (SHIAC).

Later, as V failed to pay for the goods and the mould manufacturing fee under the relevant agreements, D filed an arbitration application with the SHIAC, requesting V to pay the amount and compensate for the loss, and requesting S to pay the withheld payment for the goods.

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Xu Zhihe is the deputy head of the Department of Research and Information at SHIAC