China International Economic Trade Arbitration Commission in 2006: New Rules, Same Results?

In May of 2005, the China International Economic Trade Arbitration Commission (“CIETAC”) was updated with new rules designed to bring it into conformity with international arbitration standards. The rules were the most recent efforts by the Chinese government to provide foreign companies with an alternative to the Chinese judiciary, which is often considered parochial, unsophisticated, and unable to handle modern business conflicts. The new rules cure many of the problems associated with arbitration in China and have created a predominantly fair and professional dispute resolution forum. Currently, CIETAC suffers more from award collection problems rather than problems in its rules and procedures. Arbitration in China must still rely on the judiciary for the enforcement of awards. The Chinese government has reformed many aspects of the judiciary to make the enforcement of arbitration awards more uniform and just; yet it remains difficult to seize assets in order to satisfy an arbitral award. This Comment analyzes the 2005 changes to the CIETAC rules, and examines the Chinese government’s efforts to reform the enforcement of arbitration judgments