Publish time: Thu Nov 16 10:27:10 CST 2023
The 8th Asia Pacific Regional Arbitration Group (APRAG) Conference, hosted by the Beijing Arbitration Commission/Beijing International Arbitration Center (referred to as “BIAC”), themed "International Arbitration in Changing Times: Meeting Challenge, Bridging Divide," took place successfully in Beijing from November 13 to 15, 2023. On the morning of the 14th, the APRAG Conference held a grand opening ceremony. Ms HE Rong, Minister of Justice of PRC, and Mr YIN Yong, Mayor of Beijing, attended the opening ceremony and addressed the conference. Ms WANG Shumei, Vice-ministerial member of the trial committee of the Supreme People’s Court of PRC and Chinese senior judge of second grade, and Ms Anna Joubin-Bret, Secretary of the United Nations Commission on International Trade Law, delivered the keynote speeches at the opening ceremony. Ms Machimdhorn Khampiranont, the representative of the APRAG President, delivered a speech on behalf of the immediate past president. Mr Guo Wei, the President-in-office of the 8th APRAG committee and Chairperson of BIAC, presided the Opening Ceremony.
APRAG, established in Australia in 2004, stands as the only regional organization in the Asia-Pacific dedicated to commercial arbitration, boasting substantial international influence. BIAC joined the organization in 2005 and has obtained the vice presidency since 2006. Mr Philip Yang, a co-founder and past president of APRAG, Mr Wang Chengjie, vice chairman and secretary general of CIETAC and a past president of ARPAG, and a record high number of over 420 participants from over 20 jurisdictions, including representatives from more than 60 arbitration institutions, arbitrators, lawyers, academics, and corporate representatives attended the conference.
The Conference, divided into six sessions, summarized and reviewed the arbitration experiences in the Asia-Pacific region over the past decade in terms of evolving rules, innovative practices, and arbitration cases, focused on the issues of arbitration reform, user expectations in arbitration, and the construction of international arbitration hubs confronted with the Asia-Pacific region, looked ahead to the future development of investment arbitration, artificial intelligence, and big data in the Asia-Pacific region, attempting to bridge the differences and enhancing the consensus across the entire region.
Session 1: The Continued Rises of International Arbitration in Asia-Pacific: Evolving Rules, Innovative Practices and Latest Cases
The first session was moderated by Mr Philip Yang, Member of the International Commercial Expert Committee of the Supreme People’s Court of PRC, and featured speeches by Mr Chan Leng Sun, Senior Counsel from Duxton Hill Chambers (Singapore Group Practice), Justice Dato’ Mary Lim Thiam Suan, Judge of the Federal Court of Malaysia, Ms Vong Sok Hei, Secretary General of the World Trade Center Macau Arbitration Center, and Ms XIE Changqing, Vice President of CIETAC Arbitration Court.
Chan Leng Sun discussed key changes in the 7th edition of the Singapore International Arbitration Centre Arbitration Rules, such as introducing an integrated online case management system (SIAC Gateway) and simplified procedures. He also shared the latest rules on the Arbitration Act England on the determination of the governing law of an arbitration agreements and the latest views of Singapore courts on the confidentiality of arbitral tribunal deliberations. Justice Mary Lim Thiam Suan introduced the innovative rules and service advantages of the Borneo International Centre for Arbitration and Mediation (BICAM), which was established in Malaysia this year. She also shared the practice of the Federal Court of Malaysia on judicial review of foreign arbitral awards, focusing on issues related to the violation of public interest. Vong Sok Hei introduced the new arbitration legislations of the Arbitration Law of the Macao SAR, the specific arrangements by the courts of the Mainland and the Macao SAR, and Administrative Regulation 36/2019 regarding the establishment and operation of arbitration institutions in Macao, and the important role of arbitration in the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. Ms XIE Changqing introduced the highlights of the newly released 10th edition of the CIETAC Arbitration Rules demonstrating the efforts of Chinese arbitration institutions in enhancing digitization and intelligence, advancing the application of rules of evidence, and implementing the early dismissal system.
The speakers also discussed the issues of consolidation of multiple contracts in favor of uniform awards, whether an award that is not sufficiently reasoned will be set aside or rendered unenforceable, and the application of law in international arbitration.
Session 2: Arbitration Reform: Key Changes and the Way Ahead
The second session was moderated by TAO Jingzhou , Member of the International Commercial Expert Committee of the Supreme People’s Court of PRC, and presented by the speakers Dr JIANG Lili Secretary General of the BAC/BIAC, Justice Kurian Joseph, Former Judge of the Supreme Court of India, Mr Steve Kim, Secretary General of KCAB International, and Ms Nicole Smith, President of the Arbitrators’ and Mediators’ Institute of New Zealand (AMINZ).
Focusing on the latest reforms and developments in China’s commercial arbitration system, Dr. JIANG Lili provided an overview of China’s arbitration system and the latest reform dynamics of China’s arbitration legal system, and analysed the demand for diversified arbitration services booming in the Asia-Pacific market considering the significant regional impact on the development of the global economy. She emphasized that as the global arbitration center is shifting to Asia-Pacific, Beijing, as a leading force in developing China’s arbitration, is willing to collaborate with arbitration institutions in the Asia-Pacific region to collectively promote high-quality and sustainable development of arbitration in the region. Justice Kurian Joseph expressed support for China’s continued leadership in the development of commercial arbitration in the Asia-Pacific region and detailed the recognition and enforcement of foreign arbitral awards in Indian courts. He discussed the impact of the judicial system on shaping the arbitration landscape in India and provided judicial recommendations on commercial arbitration issues. Steve Kim pointed out that the continuous changes in the rules of arbitration institutions reflect current market trends, such as the development of third party funding systems; technological developments like blockchain and artificial intelligence are also influencing the future direction of Alternative Dispute Resolution (ADR) refinements; and institutions can take different approaches to build their brands, contributing to the broader arbitration market. Nicole Smith shared insights that New Zealand’s arbitration legislation supplements the UNCITRAL Model Law on International Commercial Arbitration, such as the Arbitrators’ and Mediators’ Institute of New Zealand (AMINZ) acting that the AMINZ is provided in lieu of court to be the default appointing authority, and the specific provisions regulate the confidentiality in its legislations.
The participating guests expressed positive attention and high appreciation for the series of reform in the Amendment of Arbitration Law (Consultation Draft) of PRC that aims to support the development of arbitration. The panelists engaged in discussions covering diverse topics, including restrictive factors influencing the expansion of the arbitration market, exceptions to confidentiality provisions, the pros and cons of ad hoc arbitration compared to institutional arbitration, and China’s arbitration culture.
Session 3: Revisiting the Expectations of Arbitration Users: Potential Challenges and Practical Options
The third session was moderated by Ms Teresa Cheng, Former Secretary for Justice of the Hong Kong SAR, and was presented by Ms. Dutsadee Dutsadeepanich, Partner of Clyde & Co (Thailand), Ms. Catherine Green, Executive Director of New Zealand International Arbitration Centre (NZIAC), Ms. Gloria Lim, Chief Executive Officer of Singapore International Arbitration Centre (SIAC), and Mr. LI Zhiyong, General Counsel & Chief Compliance Officer of China State Construction Engineering Corporation International Construction Co., Ltd. This session was conducted in a form of Q&A, and provided insights into the expectations of arbitration users and the challenges of arbitration practice.
Dutsadee Dutsadeepanich shared insights as a legal adviser on how arbitration institutions should achieve efficient, fair, and applicable dispute resolution that meets the expectations of modern arbitration users and emphasizes the importance of transparency in the arbitration procedures. Catherine Green delved into ensuring that arbitration delivers solutions proportionate to the scale of commercial disputes. She also discussed the combined approach of mediation and arbitration in dispute resolution. Gloria Lim, from the perspective of time and cost management, discussed the role played by arbitration institutions. LI Zhiyong shared views on arbitration from the perspective of corporate users and the latest reflections of Chinese enterprises in dispute resolution clauses in international business.
The panelists had an in-depth discussions on the efficiency and cost issues in arbitration, unanimously agreeing that meeting the expectations of arbitration users requires joint efforts from arbitration institutions, courts, and arbitration practitioners.
Session 4: Building an International Arbitration Hub: Coordinated Development of Local Legal Ecosystems and International Arbitration
The fourth session was moderated by Mr. Datuk Sundra Rajoo, Director of Asia International Arbitration Centre (AIAC) and President of Asia Institute of Alternative Dispute Resolution (AIADR), and participated by V K Rajah SC, Vice President of ICC Court of Arbitration, Ms. YANG Ling, Deputy Secretary-General of Hong Kong International Arbitration Centre (HKIAC) and Chief Representative of HKIAC Shanghai Office, Ms. JIN Hui, BAC/BIAC Committee Member and Specially Invited Expert of Beijing “Two Zones” Leading Group Office, and Anangga W. Roosdiono, Chairman of BANI Arbitration Center.
V K Rajah emphasized the rise of Asia as a center for international arbitration and believed that the primary changes in international arbitration over the next ten to fifteen years will be driven by China and India. Drawing on the successful experiences of Hong Kong, China and Singapore, he analyzed the essential elements required for the development of the international arbitration hub in Asia. YANG Ling provided insights into the critical essentials of the arbitration ecosystem in Hong Kong, China, suggesting that Hong Kong’s global popularity as a seat of arbitration is inseparable from the construction of legal infrastructure in Hong Kong SAR, the development of law and jurisprudence, cross arrangements between mainland China and Hong Kong SAR, and the cultivation of young professionals in the arbitration industry. Ms. JIN Hui shared new developments in the construction of the Beijing International Arbitration Hub, emphasizing the importance of Beijing “Two Zones” strategy, suggesting the advocates from the perspectives of easing market access, fostering an arbitration-friendly environment, establishing the International Commercial Dispute “One-Stop” Diversified Dispute Resolution Center, and addressing the practical needs of international experts, thereby providing more convenience and support for the establishment and operation of international arbitration institutions in Beijing. Anangga W. Roosdiono described the efforts made by the Indonesian National Arbitration Commission in creating an international arbitration hub and shared successful experiences in promoting the development of legal professionals, improving the quality of the arbitrator pool, and implementing effective remote hearing procedures.
The panellists also discussed issues such as using artificial intelligence in arbitration institutions and negotiation under applicable laws.
Session 5: Investor-State Dispute Settlement Reform: Where do the Asia-Pacific Stakeholders’ Interests Lie?
The fifth session was moderated by Dr. Colin Ong KC, Member of the International Commercial Expert Committee of the Supreme People’s Court of PRC, and featured by Mr. Shin-Ichiro Abe, Chairman of Japan Institute for International Arbitration Research and Training (JIIART), Mr. ZHAO Yang, Representative of Dechert’s Beijing Office, Mr. CHI Manjiao , Professor of Law School of University of International Business and Economics, and Mr. Francis Xavier, Reginal Head of Disputes Group, Rajah & Tann Asia.
Shin-Ichiro Abe discussed corruption issues in investment arbitration. From a compliance perspective, he analysed the unacceptability of international investment in the shadows of corruption, by providing cases to demonstrate the ideas of arbitral tribunals in dealing with corruption, and generalized the evidence principles of preponderance of evidence, beyond reasonable doubt, and fairly certain standards. Mr. ZHAO Yang discussed the main interests and concerns of host States and other stakeholders in the Asia-Pacific region regarding ISDS reform. Taking a China perspective, he presented ISDS reform proposals using the appeal mechanism and third party funding mechanisms as examples. He also emphasized the important role of economic development in the Asia-Pacific region and the construction of regional forums. Prof. CHI Manjiao reviewed recent investment arbitration cases, the latest rules, and specific practices. He discussed, from the separate perspectives of host countries, investors and institutions, the terms and conditions in ISDS investment dispute settlement, concerns of investor interests, and the accepting of ISDS cases by arbitration institutions.. Mr. Francis Xavier, pointed out that, in the light of geographic diversity and representativeness, the proportion of Asia-Pacific arbitrators in international arbitration is far lower than that of the West, which is probably less than 5%. He proposed that it is necessary to strengthen practice and increase publicity, improve the reputation of experts, create a better arbitration environment, and then promote the participation of Asia-Pacific arbitrators in investment arbitration.
The panelists also exchanged ideas the code of conduct for arbitrators, the diversity of arbitrators in investment arbitration, the review of arbitral awards interpretation in investment arbitration, and the disclosure of evidence in arbitration.
Session 6: Disputes of Tomorrow: Arbitration in the Era of Artificial Intelligence & Big Data
The sixth session was moderated by Mr. Nick Longley, Executive Director of Australian Centre for International Commercial Arbitration (ACICA) and Partner of HFW (Melbourne), and presented by Sir William Blair BAC/BIAC Committee Member, King’s Counsel of3VB Chambers London, Ms. LI Raojuan, Deputy Director of Data and Privacy Legal at Douyin Group, Mr. Jean-Rémi de Maistre, CEO and Co-founder of Jus Mundi, and Mr. Ronald Sum, Partner of Baker McKenzie Hong Kong Office and Vice-Chair of eBRAM International Online Dispute Resolution Centre.
Sir William Blair KC discussed the emergence of generative artificial intelligence in the context of large language models and its applications in international business and investment arbitration, and analysed the potential uses and limitations of artificial intelligence in international business and investment arbitration, along with possible paralleled obligation of disclosure following the use of AI. With a forward-looking perspective, he proposed that the application of AI would lead to significant transformations. LI Raojuan, focusing on the developmental history of AI, discussed the focus of dispute in AI application, proposed standardizing and improving the entire process from data input to output, and explored critical points in data protection for cross-border data transfer. Jean-Rémi de Maistre suggested that AI technology has been able to realize the collection and processing of global arbitration data, legal citation extraction, and other functions. On the premise of balancing data collection and information protection, First AI has already been applied in thousands of arbitration cases. Using Jus-AI as an example, he detailed the operational mechanism of generative AI. Ronald Sum believed that AI technology has been widely applied in the arbitration industry, encompassing functions such as document filtering, embedded translation, AI legal research, and case results prediction, but even the emergence of AI arbitrators is possible. He pointed out potential issues in various aspects of AI applications, which can be improved by referencing AI guidelines, model clauses, and information disclosure. He provided an outlook on the future role of AI.
Closing Remarks
On the afternoon of November 15th, the APRAG Conference held its closing ceremony. Ms. CUI Yang, the Director-General of the Beijing Municipal Bureau of Justice, and Mr. GAO Zicheng, the President of the All China Lawyers Association (hereinafter referred to as “ACLA”), attended and addressed the closing ceremony.
CUI Yang highlighted the Beijing Municipal Bureau of Justice focuses on the innovative development of the arbitration field and actively participates in promoting the issuance of the Implementing Opinions on Improving Arbitration System, Raising Arbitration’s Credibility and Building International Arbitration Center, the document issued by the general office of the State Council to improve arbitration system to strengthen credibility. The Bureau paid attention to foreign exchanges in the field of law and has hosted the “China Legal Forum on International Trade in Services” for three consecutive years since 2021. The office also emphasized cultivating legal talents in the foreign-related rule of law, formulating the Action Plan for the Construction of International Legal Professionals in the Capital, and issuing the Beijing Municipality Training Program for 100 Senior Level International Legal Professionals. Ms. Cui also mentioned that accelerating the construction of the International Commercial Arbitration Hub and creating a preferred seat for international arbitration are important goals for developing arbitration in Beijing. The Beijing Municipal Bureau of Justice will continue to uphold a friendly attitude towards commercial arbitration, welcoming reputable arbitration institutions from the Asia-Pacific region to establish their operations in Beijing.
Mr. GAO Zicheng highlighted the rapid development of China's legal profession, As cross-border legal services are growing, The legal profession has become an important force for law-based governance. ACLA actively conducts training for foreign-related lawyers and selects international legal professionals nationwide. To facilitate the national “Belt and Road” Initiative, ACLA has initiated the Belt and Road International Lawyers Association (BRILA) providing legal services for key BRI projects. Finally, on behalf of the ACLA, GAO Zicheng welcomed arbitration institutions and legal professionals from the Asia-Pacific region to visit the Association to strengthen exchanges and cooperation.
In the time of the Conference, participants from home and abroad convened to engage in discussions on the development of arbitration, fostering connections with both old and new friends. The organizers seamlessly integrated various high-quality thematic exchange activities, including breakfast symposiums and a gala night. The high degree of consensus on rules and shared values in the international arbitration field has enabled rapid cross-cultural communication and integration among participants worldwide, forged deep friendships, and reached many new intentions for exchanges and cooperation. Participants, without exception, commended the diverse and captivating content and the meticulous and thoughtful service of this Conference. They have faith in APRAG’s increasing importance in fostering the development of international arbitration in the Asia-Pacific region and believe that Beijing will become an even more favoured destination for international arbitration.
The success of the APRAG Conference in Beijing and BAC’s taking the APRAG President-in-office stand as notable achievements in Beijing's active efforts to construct the international commercial arbitration hub. The agglomerating force and influence of Beijing as an international commercial arbitration hub are further strengthened, and China’s arbitration institutions will play a more crucial role in the Asia-Pacific region and international arbitration.
Acknowledgments
Supporting Organizations
Beijing Borui Open Policy Research Institute
Beijing Lawyers Association
The Beijing Law Society of the Belt and Road
Belt and Road International Lawyers Association
Tsinghua Institute for Governance Studies
Academy of International Strategy and Law of Zhejiang University
Insurance Association of China
China International Contractors Association
Internet Society of China
China-Aisa Economic Development Association
China Academy of Arbitration Law
All China Lawyers Association
Sponsoring Organizations
Ashurst Guantao (FTZ) Joint Operation Office
AnJie Broad Law Firm
Beijing Dacheng Law Offices
DaHui Lawyers
Fangda Partners
Beijing Huanzhong & Partners
JunHe LLP
Jincheng Tongda & Neal
Jingtian & Gongcheng LLP
Shanxi Provincial Lawyers Association
Zhong Lun Law Firm
Hui Zhong Law Firm
Llinks Law Offices
King & Wood Mallesons
Tahota Law Firm