Beijing Arbitration Commission

The World Bank Group, as a multi-lateral development organization under the UN, has long monitored the investment environment in many countries and regions, at the same time it has published its Cross Border Investment Report for relevant UN organizations and international cross-border investors. On August 14, the Department of International Affairs of the Ministry of Finance transmitted a questionnaire regarding parts of the World Bank Group’s 2010 Cross Border Investment Report that are related to Chinese commercial dispute arbitration. In response to the questionnaire, the BAC carried out research, then on August 17th submitted feedback opinions to the Ministry of Finance, with relevant data attached. In its opinions, the BAC strove to objectively reflect the true state of China’s commercial dispute resolution system to maximize the possibility that Cross Border Investment Report could give an even-handed evaluation of China’s commercial dispute arbitration system and its foreign investment environment. The expert team of the World Bank Group revised the Report based on the feedback, and sent an expert team consisting of nine persons to visit the BAC on Aug. 24, 2011. The visiting team, which was headed by Augusto Lopez-Claros, director of the cross-border investment section, consisted of nine experts including Peter Kusek, senior investment policy officer, and Sylvia Solf, manager of the cross-border investment report project. Mr. Han Su, of the division of International Finance of the Ministry of Finance, accompanied the visiting team. From the BAC, Secretary General Wang Hongsong, and directors Chen Cong and Chen Fuyong, and some of the secretaries warmly welcomed the visiting guests, and had an extensive discussion and exchange with the visiting experts on relevant issues.

During the meeting, Augusto Lopez-Claros expressed his appreciation for the warm welcome by the BAC, and briefly introduced some details of the Cross-border Investment Report. Peter Kusek further explained the research aim of the Cross-Border Investment Report, and its scope and significance. He emphasized his introduction to the reference material and statistics method used for the arbitration section of the report. He expressed hope to use the content of this section of the report to do research and further statistical evaluation of the arbitration processes, efficiency, and judicial recognition and enforcement of arbitration in all 76 countries and regions surveyed in the report. The arbitration section of the report is important to evaluating the investment environment in each country and region. He also said that the BAC was the first arbitration organization in China that the Cross Border Investment Report expert group had visited on this trip.

Then Director Chen Cong used a power point presentation to introduce reforms and innovations achieved by the BAC in: independence, arbitration rules amendments, construction of a team of arbitrators, and diversification of the dispute resolution mechanism. At the same time, he discussed other issues raised in the report with the experts, including: the right of litigants to appoint arbitrators, the rights of the arbitration panel in disputes on jurisdiction, the recognition and enforcement of arbitration awards by people’s courts.

Mr. Augusto Lopez-Claros introduces the Cross-border Investment Report	Director Chen Cong proposes opinions for improvement of the Cross-border Investment Report

Director Chen Fuyong simply wanted to introduce what The Arbitration Law of the People’s Republic of China had absorbed from UNCITRAL’s International Commercial Arbitration Model Law and some the differences between the two laws. He also introduced some new developments in arbitration and mediation at the BAC and other arbitration organizations in China.. Mr. Chen suggested that, in its inspection, the expert team not only look at China's legislation but also at the practical application of the laws; in this respect, the BAC would be willing to share information, documentation, and research results with others. Mr. Peter Kusek demonstrated great interest in Mr. Chen’s suggestion, and hoped to strengthen exchanges and cooperation with the BAC in this regard.

The expert team asks questions about arbitration in China	Director Chen Fuyong introduces new developments in the arbitration and mediation of commercial disputes in China

Finally, Secretary General Wang Hongsong again thanked the expert team for visiting, and represented that the BAC is willing to provide suggestions and aid to the expert team in relation to arbitration and dispute resolution in China so as to let the rest of the world objectively understand the real state of China’s dispute resolution development.. After the meeting, Mr. Han Su, director of the Ministry of Finance, fully affirmed the BAC’s civic-mindedness, spirit, and efficiency in taking the initiative to assist governmental authorities in carrying out their work.