In 2012, a schism between CIETAC (China International Economic and Trade Arbitration Commission) Beijing and two sub-commissions, CIETAC Shanghai and CIETAC Shenzhen, resulted in the sub-commissions declaring their independence and re-establishing themselves under the authority of their respective municipal governments as the Shanghai International Economic and Trade Arbitration Commission – also known as the Shanghai International Arbitration Centre (SHIAC) – and the South China International Economic and Trade Arbitration Commission – also known as the Shenzhen Court of International Arbitration (SCIA).
Unsurprisingly, this has led to considerable confusion as to the validity of many arbitration clauses and has raised significant concerns regarding the future enforcement of awards rendered by the newly formed commissions. Those concerns have been found to be valid following two recent decisions handed down in relation to the enforcement of awards confirmed by the SHIAC and the SCIA.
This author would like to discuss the results and implications of these recent developments, focusing on the most recent Suzhou Intermediate People’s Court (IPC) decision, which refused the enforcement of a SHIAC award.
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The authors, Gavin Denton and Brian Lin, are with Arbitration Chambers Hong Kong