China Arbitration War: CIETAC Announced Its Shanghai Brunch Illegal
By Albert Chen
China International Economic and Trading Arbitration Committee (CIETAC), the well-known China based international arbitration chamber, has been on the front page of local medias these days for it hearing the trademark dispute of Wang Lao Ji and the chamber’s internal strife. And by the latest news known to us, CIETAC holds the currently heard or adjudicated cases by its previous Shanghai Branch may face the risk of invalidity.
I. The conflict
The battle was triggered by the publishing of the chamber’s new rules of association and the arbitration rules (the “new rules”), which was rejected by CIETAC Shanghai Branch with the defenses that vote of the new rules did not base on the most wills. Moreover, to Shanghai Branch’s opinions, the clauses of the new rules also damage the free will to choose the arbitration committee and hearing place, and considering the vastly improved arbitration fees and the applicable scope of the sole arbitrator hearing. What’s worse, the new rules may also jeopardize the independence of the Shanghai Branch. For these reasons, Shanghai Branch stated on 4th May (Note: the link is in Chinese) of 2012 to denounce CIETAC and restate it as an independent committee.