Is Arbitration A Viable Option For Resolving Disputes With A Chinese Party?

Continuing our current series on doing business in China, this edition discusses the viability of arbitration as a method of resolving disputes. This article highlights international arbitrations with a Chinese party that is decided outside China ("offshore arbitration") and international arbitrations with a Chinese party and a foreign party that is decided in China ("foreign related domestic arbitration"). Specifically, we discuss the enforceability of offshore arbitration awards and the viability of foreign related domestic arbitration in China.

Enforceability of offshore arbitration awards

As discussed in our last article, one of the attractions of parties agreeing to arbitrate is the willingness of Chinese courts to enforce offshore arbitration awards. This is in contrast to China's general unwillingness to enforce foreign court judgments other than in very narrow circumstances.