Beijing Arbitration Commission

Beijing Arbitration Commission 1996 Annual Review

1996 was the first year after the establishment of the Beijing Arbitration Commission. With the combined efforts of the commissioners and the numerous arbitrators, along with the support of various circles of society, the BAC has made delightful progress.

I The number of accepted cases greatly increased

To date, the BAC has received more than 1000 case consultations. The BAC has accepted a total of 150 cases. Of the disputes accepted, 3 cases arose from contracts for representation, 5 cases from contracts for technology, 17 cases from contracts for sales, 8 cases from contracts for construction, 9 cases from contracts for co-operation, 50 cases from contracts for transferring, leasing and development of real estate and related disputes, 3 cases from contracts for undertaking, 2 cases from contracts for intermediary service, one case from contracts for copyright, one case from contracts for guarantee, one case from contracts for undertaking the project, one case from contracts for investment and one case from contracts for joint venture. It bears noting that we only accepted 20 cases from October of last year to the end of June. The number of accepted cases did not significantly increase until the TianJin Working Conference, with the most significant increase coming after the distribution of the 22nd document by the General Office of the State Council in June. By contrast, in July, August, and September, we accepted 68 cases in total, more than 40 cases over the amount accepted during the preceding 9 months. This marked increase demonstrates that the 22nd document played an important role in the transition from the old arbitral system to the new one. At present, more than 90 cases have been concluded, occupying 69% of the total cases accepted. Of these concluded cases, 39 cases were concluded by award, representing 56% of all of concluded cases. 25 cases were concluded by mediation, representing another 35%, and 6 cases were concluded by reconciliation, representing the final 9%. It took approximately 50 days on average from the constitution of an arbitral tribunal to the conclusion of a case, and approximately 70 days on average from the acceptance of cases to their conclusion. Compared with other arbitration organizations, the BAC ranked the second in number of cases accepted and the first in the number of concluded cases.

There are three main reasons for this increase in the number of cases. The first reason is the promulgation and implementation of the 22nd document of the General Office of the State Council. The majority of cases were accepted in accordance with the 22nd document. The second reason is the effect of our publicity efforts, especially those that resulted in news media coverage. The third reason is the arbitrators impartiality and diligence, which attracted parties to arbitrate at the BAC again. Throughout the process of arbitration, heavily regulated by the Arbitration Law and the rules of the BAC, the arbitrators were consistently cautious and conscientious. They paid careful attention to key procedures concerning the arbitral proceedings, the examination and authentication of evidence, and the award making. They continually improved the quality of case resolution and earned high praise from arbitrating parties.

II Remarkable improvement in publicity

Through December 5th, 1996, nearly 70 articles associated with the introduction of arbitration and the BAC have been published in more than 40 newspapers and magazines, and an arbitration column was also specially run in Beijing Daily, China Business, Business Circle, Pioneer and Messages of Joint Venture Enterprises Association. Stories about arbitration were broadcast a total of 15 times on CCTV, BTV, Central Peoples Broadcast Station, and Beijing Peoples Broadcast Station. 110,000 pieces of publicity material were disseminated through multiple channels as well. 345 enterprises and law offices were directly trained by means of symposia, with more than 1,000 people attending. The Beijing Arbitration Message, edited by the BAC, has published 7 issues. Moreover, a large quantity of publicity work concerning the Arbitration Law and the BAC was also conducted by the commissioner of the committee and the arbitrators. Among other things, this work consisted of instructing enterprises on how to enter into arbitration agreements.

III Improved case handling and worked to ensure fairness in arbitration

Several measures have been taken to ensure the fairness of arbitration. First, we developed an effective system for arbitrators to communicate with the parties after conclusion of cases. Second, the fairness of arbitration was stressed as the most substantial element of the arbitrators training and examination. Moreover, we opened up the case proceedings and the ethical standards for arbitrators to review by a wide range of lawyers and managers of enterprises, inviting them to supervise us and make suggestions. Last, a special discipline committee, in charge of investigating and dealing with violations of ethical standards, was set up as a subsidiary of the arbitration committee.

IV Enhanced office resources

At present, the Office consists of 9 formal workers, all of whom have either a bachelors or masters degree. The office and arbitration procedure are managed by software, which gradually demonstrated great advantages in efficiency and helped facilitate greater impartiality. Compared with the arbitration organizations in the national pilot cities, the number of staff at the BAC is the second lowest. In order to ensure the convenient handling of cases for the arbitrators, the Office purchased relevant books and a database consisting of laws, regulations and judicial interpretations of the Supreme Court.

V Strengthened our relationship with various circles of society

First, the BAC promoted a working association with the Court. When faced with problems of jurisdiction and procedure, the BAC was able to communicate with the Court in a timely manner. Second, the BAC reinforced their relationship with administration organizations and was greatly supported by them. Third, we exchanged materials with other newly established organizations and assisted each other.

Model Arbitration Clause Arbitration Clause
All disputes arising from or in connection with this contract shall be submitted to Beijing Arbitration Commission / Beijing International Arbitration Center for arbitration in accordance with its rules of arbitration. The arbitral award is final and binding upon both parties.
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