New International Rules Of Chinese Arbitration Association Streamline Processes

The Chinese Arbitration Association ("CAA") adopted the Chinese Arbitration Association International Arbitration Rules 2017 ("CAAI Rules") on July 1, 2017. The Rules—which can apply only to arbitrations seated outside of Taiwan—seek to introduce features to address procedural issues associated with having international arbitrations seated in Taiwan, as well as to streamline the process generally.

To attract international parties, and Chinese parties in particular, the Model Arbitration Clause for the CAAI Rules designates Hong Kong as the default seat of arbitration. An emphasis on Hong Kong—a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitration Awards that Taiwan has not ratified—as the default seat enhances the enforceability of awards made under the Rules. Awards to be enforced in China are expected to benefit from the enforcement mechanism in place between Hong Kong and China.