The Status And Recognition Of Awards Rendered In China By Foreign Arbitral Institutions

Arbitration in China has already undergone various reforms in response to the concerns and criticisms expressed by foreign investors and legal experts. These reforms reflect the will of Chinese government officials to bring Chinese arbitration more in line with international standards.One aspect of Chinese arbitration law that is of enduring interest to the international community is the question as to whether Chinese laws permit foreign arbitral institutions, such as the ICC, to administer arbitrations in China. In practice, the rules of foreign arbitral institutions are increasingly accepted and have been used in China. But will the Chinese courts enforce awards rendered in China by foreign arbitration institutions? Certain Chinese court decisions have caused some to believe that this may in fact be possible, despite the traditionally-prevailing view to the contrary. Unfortunately, the issue remains legally uncertain.The comparison between the laws and court’s practices of the United States, Thailand, and China presents varieties of policy options and methods of the legal implementation in respect of the said issue. Comparison of the three countries suggests that China may need to reconsider its policy and practice with regards to the recognition and enforcement of arbitral awards made in its territory by foreign arbitral institutions.