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Wang Chengjie: Gathering Force to Promote the New Development of the "One-Stop" Diversified International Commercial Dispute Resolution Platform

From:          Updated: 2022-09-21   

Editor's Note: The Third Seminar of the International Commercial Expert Committee of the Supreme People's Court and Reappointment Ceremony of the First Group of Expert Members was held successfully on Augest 25, 2022. Over 40 experts from more than 20 countries and regions focused on the theme of the Development, Challenges and Countermeasures of Cross-Border Commercial Disputes during the seminar. Extensive and in-depth discussions were held within the framework of four specific issues. The texts of speeches delivered by the participants would be posted on the CICC's website. 


GATHERING FORCE TO PROMOTE THE NEW DEVELOPMENT OF THE "ONE-STOP" DIVERSIFIED INTERNATIONAL COMMERCIAL DISPUTE RESOLUTION PLATFORM


Wang Chengjie

Vice Chairman and Secretary General of China International Economic and Trade Arbitration Commission (CIETAC) 


Distinguished leaders,

Dear colleagues,


Good afternoon!


First of all, please allow me to express my appreciation to the invitation of the Supreme People's Court (the SPC). I am very pleased to attend this Seminar to share views and gather wisdom, jointly contribute to the functions of the "One-Stop" Diversified International Commercial Dispute Resolution Platform ("One-Stop" Platform). 


Since the 18th CPC National Congress, from the perspective of promoting national governing system and improving the modernization of governance, President Xi Jinping pointed out that non-litigation dispute resolution mechanism shall serve at the frontline, and a One-Stop diversified dispute resolution mechanism shall be promoted. Building the "One-Stop" Platform is an important measure taken by the SPC to implement the spirit of rule of law of Xi Jinping, and to provide legal service and guarantee for China's high level opening-up. In recent years, based on the construction of China's International Commercial Court, the SPC kept innovating and exploring, forming the "One-Stop" Platform with Chinese characteristics as well as reflecting rule of law and the current practice. In 2018, the SPC established the International Commercial Court, invited domestic and international experts to form the International Commercial Expert Committee, included five arbitration institutions, including CIETAC, and two mediation institutions in the first batch of cooperating institutions, providing systematic safeguard for the construction of the "One-Stop" Platform. Last year, the SPC made full play of the achievements of the "Smart Court" and built an information system for the "One-Stop" Platform, forging ahead with the new path of dispute resolution service empowered by digital technology. Not long ago, the SPC issued the Notice on Inclusion of the Second Group of International Commercial Arbitration Institutions in the "One-Stop" Diversified International Commercial Dispute Resolution Mechanism, including more institutions into the platform, laying a solid foundation to further the function of the diversified dispute resolution mechanism. 


Currently, building an inter-connected, well-functioned, fair, efficient and economic international commercial dispute resolution mechanism has become an important component of a national or regional business environment and soft power. This February, the World Bank issued the Pre-Concept Note for the Business Enabling Environment (BEE), drawing worldwide attention. The first set of indicators specifically includes "dispute resolution", and "Alternative Dispute Resolution Mechanism (ADR)" is included in the second set of indicators, serving as indicators to measure the quality of regulations and support of efficiency, including recognition and enforcement of arbitral awards, form of the arbitration agreement, arbitrability of commercial disputes, and judicial support of arbitration. The Pre-Concept Note of the World Bank indicates that when supported by a strong legal framework, the ADR mechanisms could be used by private parties to resolve their disputes more efficiently and flexibly. Well-functioning ADR mechanisms can help reduce court backlogs and improve the quality of resolving disputes by sharing knowledge and expertise. 


As a universally recognized dispute resolution method, arbitration is one of the important components of China's diversified dispute resolution mechanism, offering strong support for the improvement of China's soft power in the rule of law, the building of a better business environment, and the realization of a high level opening-up. As the first arbitration institution established after 1949, CIETAC has always stood by its principle of providing independent, fair and efficient arbitration service, properly resolved over 50,000 commercial disputes with a majority of foreign-related cases. The parties came from over 100 countries and regions. Its arbitral awards have been widely recognized and enforced across the world, with its arbitration credibility acclaimed domestically and internationally. In the recent years, CIETAC's primary business indicators kept making new records. Comparing with the main international arbitration institutions in the world, CIETAC has leading caseload, as well as amount in disputes and numbers of parties' nationalities. In 2018, the amount in disputes exceeded RMB100 billion for the first time, and kept this record in the next four years. In 2021, CIETAC for the first time accepted over 4000 cases in a year, with the average amount in foreign-related disputes exceeding RMB90 million, involving 93 countries and regions, including 36 countries and regions alongside the Belt and Road Initiative, setting a new record. CIETAC was also rated as one of the five most popular arbitration institutions in the world by the authoritative 2021 International Arbitration Survey. 


As one of the important institutional achievements in serving and guaranteeing the Belt and Road Initiative, China's "One-Stop" Platform is one of the highlights and products in constructing the current international commercial dispute resolution system. In terms of how to leverage the function of the "One-Stop" Platform, further optimize the business environment, and better serve the market economy, I would like to address a few points from the perspective of CIETAC as an arbitration institution.


Firstly, we shall deepen cooperation and promote the development of the "One-Stop" Platform. The "One-Stop" Platform currently has 10 arbitration institutions and 2 mediation institutions, covering first-class dispute resolution institutions in the Chinese Mainland and Hong Kong SAR. At this stage, the "One-Stop" Platform continues to explore and improve, and there is still ample room for enriching cooperation, triggering vitality, building international competitiveness and credibility of China's international commercial dispute resolution mechanism.


The cases we received can be an example. In the past three years, CIETAC received nearly 700 foreign related cases, including approximately 80 cases with a value of more than RMB300 million. These cases involved with many preservation and awards enforcement issues. In the future, the International Commercial Court can leverage the "One-Stop" Platform to adequately detect cases eligible for acceptance, and establish an efficient communication and liaison mechanism with the goal of sound judicial protection.


With regard to law ascertainment, the "Beijing Joint Declaration of the 'Belt and Road' Arbitration Institutions" (Beijing Joint Declaration) was launched in 2019 by CIETAC, jointly with more than 40 domestic and foreign arbitration institutions. The "Cooperation Mechanism", which was officially released in 2021, created an international platform to strengthen cooperation, enhance dialogue and build consensus among arbitration institutions of the Belt and Road countries and regions. Relying on the Beijing Joint Declaration and the Cooperation Mechanism, CIETAC will soon establish the "Belt and Road" law ascertainment mechanism together with international arbitration institutions to effectively meet the needs of Chinese and foreign parties for diversified dispute resolution. In the future, the "Belt and Road" law ascertainment mechanism can serve as a new boost to cooperation in the rule of law, enrich the resources of foreign law ascertainment platform of the International Commercial Court, and promote the high-quality development of the "Belt and Road Initiative" together.


In addition, CIETAC has an expert pool of nearly 600 foreign arbitrators from 140 countries and regions. Coupled with the Beijing Joint Declaration of the 'Belt and Road' Arbitration Institutions with nearly 30 foreign participants, and events such as China Arbitration Week and China Arbitration Summit, CIETAC is able to enhance the international impact of the International Commercial Court and the "One-Stop" Platform. It will fully reflect the achievements of China's rule of law construction and judicial innovation, and amplifies the international influence and voice of China's dispute resolution mechanism.


Secondly, we shall promote communication to form a "One-Stop" Platform where litigation and arbitration are orderly connected. On the one hand, we should establish a docking and transfer mechanism for arbitration cases and judicial procedures, and give full play to the role of alternative dispute resolution mechanisms. Based on the actual situation of the case and the willingness of the parties, we could guide and support the parties to utilize diversified dispute resolution mechanisms to resolve disputes and achieve an orderly and reasonable diversion of cases. Arbitration is voluntary, professional, confidential, flexible, efficient and final. Particularly, arbitral awards are internationally enforceable and can be universally recognized and enforced in 170 countries and regions under the New York Convention. For cases that are more conducive to arbitration, especially those involving overseas enforcement, the "One-Stop" Platform can guide and support the parties to reach arbitration agreements and clarify the case transfer process and procedures. Take intellectual property and financial cases as examples, the parties may have higher requirements for confidentiality and professionalism out of concerns of technology protection and financial innovation, or have concerns that the relevant legal provisions may be relatively outdated. The transfer of such cases to arbitration accords with the parties' willingness to resolve disputes, reduces the pressure on the courts, and injects new vitality into the "One-Stop" Platform. In order to better serve the parties, CIETAC established the Intellectual Property Arbitration Center and the Shanghai International Arbitration Center for Securities/Futures and Financial Disputes to formulate financial arbitration rules and supporting systems to meet the needs of the parties in resolving disputes of particular types of cases, and to enhance the professionalism of dispute resolution. Recently, the Southwest Branch of CIETAC signed the Cooperation Agreement on "One-Stop" Platform with the People's Court of Chongqing Pilot Free Trade Zone and the Belt and Road International Commercial Mediation Center, and handled China's first case transferred from litigation to arbitration. It was rated as the fourth batch of "Best Practice Case" in the Pilot Free Trade Zone. The "One-Stop" Platform has been applied in practice with positive outcomes.


On the other hand, with the rapid development of society and economy, new types of difficult and complex cases received by People's Courts and arbitration institutions frequently emerge. These cases reflect new social problems and disputes in the judicial field, which are difficult to refer to existing rules and precedents, thus quite challenging. In the face of such cases, the "One-Stop" Platform serves not only the diversion and transfer among litigation, arbitration and mediation, but also the foster and exchange of new ideas in trial. It is vital to underscore the role of the "One-Stop" Platform, establish a long-term mechanism for regular communication, exchanges and mutual learning in adjudication, so as to handle new types of cases with prudence and jointly improve the "One-Stop" Platform. At the same time, understanding and consensus could be reached in our mutual communication, so that the People's Courts may better understand and support the international arbitration system, and to foster a more friendly legal environment for international arbitration. 


Thirdly, we shall innovate the cultivation system and promote the "One-Stop" training of foreign-related legal talents. President Xi Jinping pointed out that "the key to success lies in people". The cultivation of foreign-related legal talents is of fundamental and strategic significance for China's foreign-related rule of law construction, the "Belt and Road" Initiative and global governance. To build a team of "One-Stop" foreign-related legal talents proficient in litigation, arbitration and mediation is an indispensable requirement for the "One-Stop" Platform to maximize its functions. In the long run, the "One-Stop" legal talent training should have clear objectives and aims, innovate talent training mechanism, strengthen professional capacity building, improve the whole chain of talent training system, and accelerate the training of a group of high-caliber foreign-related legal talents with both integrity and expertise, as well as excellent business and international vision. In the short term, it is necessary to implement personnel exchanges and mutual learning among the "One-Stop" Platform institutions, broaden the channels for cultivating talents between the courts and the included institutions, and, when appropriate, establish joint training bases for foreign-related talents with domestic and foreign universities and research institutions. This is to form a multi-level talent cultivation system among institutions, between courts and institutions, and at home and abroad, and build an international exchange and practice platform for foreign-related legal talents for international commercial courts and included institutions.


Ladies and gentlemen, the establishment and perfection of the diversified international commercial dispute resolution mechanism remarkably reflect the soft power and competitiveness of the rule of law among countries. Under the guidance of the SPC, CIETAC will work together with you to actively cooperate with the International Commercial Court, enhance the "One-Stop" Platform, build a fair and efficient international commercial dispute resolution mechanism, stimulate the high quality development of the "Belt and Road" Initiative. We will create a stable, fair, transparent, predictable and market-oriented international business environment based on the rule of law, and make our due contribution to China's participation in the global governance system and the modernization of China's governance capacity.


Thank you all!


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*The original text is Chinese and has been translated into English for reference only. If there is any inconsistency or ambiguity between the Chinese version and the English version, the Chinese version shall prevail.