New developments to impact international arbitration in China

Traditionally, many foreign companies have preferred to resolve disputes with Chinese counterparts through arbitration outside of China. Some arguments to choose for international arbitration:

• Arbitration outside China may be deemed more reliable than litigation or arbitration within China.
• Under the Convention for the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) to which China is a member, arbitral awards reached in most countries can be recognized and enforced in China.

There are a number of counter-arguments, which have further gained in force over the years. For example:

• Litigation and arbitration in China now have a good reputation, especially in the big cities such as Shanghai, Beijing and Guangzhou.