Study On The Legal Practice Of Arbitration Third Parties In China

With the development of society and economy,the forms of transactions between civil and commercial businesses show a diversity of features.The number of transactions involving chain contracts,contracts involving third parties is increasing.Concerning how to make an arbitration agreement binding to a third party,whether it is applicable to join third parties in the arbitration process and how third parties join in the arbitration process,the arbitration laws in China has not clearly mentioned,resulting in some conflicts of legal practice.At present,on the one hand,the scope of arbitration non-signatory allowed under the laws in China is too narrow;in the meanwhile,there are some basic conflicts among the judicial verdicts concerning arbitration non-signatory.On the other hand,joinder of arbitral proceedings has not been confirmed under arbitration law in China.In addition,there are also a few recognition disagreements among different arbitral tribunals as to how to make third parties join the arbitration proceedings,leading to more doubts and disputes about the arbitral process from arbitration parties.The conflicts mentioned above will lead to further disputes over the arbitration awards,which ultimately will hinder the development of arbitration in China.Arbitration third party has the dual attribute of procedural law and substantive law and should be divided into arbitration non-signatories and joinders of arbitral proceedings.The construction of arbitration non-signatory system shall be based on basic theory about exceptions of privity of contract under the substantive law in China.As for the construction of joinders of arbitral proceedings,it is necessary to insist on a contextual interpretation of the validity scope of arbitration agreement and keep the arbitral process interests of arbitration third parties and original parties in balance.To reduce the disputes over the judicial practices concerning the arbitration third party,the Arbitration Law should confirm the legitimacy of the arbitration third party.Meanwhile,to alleviate the conflicts in the interpretations and rules of the arbitration third party in different arbitration institutions in China,it is necessary and applicable to establish uniform rules for the joinders of arbitral proceedings,which could provide guidance for various arbitration rules of different arbitration institutions in China.