Arbitral Award Enforcement Arrangement between HONG KONG and MAINLAND CHINA

 

Arbitral Award Enforcement Arrangement between HONG KONG and MAINLAND CHINA

 

PRC arbitration system comprises of Chinese International Economic and Trade Arbitration Commission (“CIETAC”), Beijing and Shenzhen and domestic arbitration in major cities in China. The CIETAC was formed in early 1980’s to handle disputes involving foreign investment. The domestic arbitration mainly deal with domestic disputes, but recently they also accept dispute involving foreign investment.

There are specialized arbitration centers dealing with special area of dispute, e.g. maritime law.

Arbitral-Award-Enforcement-ArrangementBefore 1997, arbitral awards were reciprocally enforceable between Hong Kong and Mainland China by virtual of New York Convention.

By an arrangement made between Hong Kong government and Central government in 1999, arbitral awards of CIETAC, 56 domestic arbitration centers and Maritime law arbitration center of China can be enforced in Hong Kong. Vice versa, Hong Kong International Arbitration Centre awards can be enforced in mainland China. Through the PRC, Hong Kong awards can be enforced in the jurisdictions of the signatories of New York Convention.

As mentioned above, Hong Kong has the advantage of independent legal system, being bilingual and cluster of professionals, it can be a preferred centre for disputes resolution through arbitration, especially disputes involve enforcement of awards in China.