ISSUING AUTHORITY:

China International Economic and Trade Arbitration Commission

DATE OF RELEASE:

September 5, 2023

EFFECTIVE DATE:

January 1, 2024

With the approval of the China Council for the Promotion of International Trade (“CCPIT”), On September 5, 2023, China International Economic and Trade Arbitration Commission (“CIETAC”) officially released the New Edition of the Arbitration Rules of CIETAC (2024) (the “2024 Rules”). The 2024 Rules will come into effect on January 1, 2024.

The highlights of the 2024 Rules are:

1. Decision of jurisdiction. The 2024 Rules clarify that, after the arbitration tribunal's formation, the jurisdiction decision will be determined by the arbitration tribunal. This will allow arbitral tribunals to dismiss a claim or a defense that is obviously without legal merit or outside the tribunals’ jurisdiction.

2. Third-Party funding. Following trends in international arbitration practice, the 2024 Rules also add new articles on third-party financing, outlining some general rules. This move indicates a positive attitude towards third-party funding despite PRC law not taking a position on this financing option.

3. 2014 Rules also revise existing clauses. Along with these innovations, the 2024 Rules also revised existing provisions and clauses. Under the 2024 Rules, initiating multi-contract arbitration or consolidating existing arbitrations will be easier in cases where there is a series of related contracts in dispute.

4. Interim measures. CIETAC can now forward an interim measure application not only to courts inside Mainland China but also to the courts outside Mainland China.

5.  The application of Evidence Guidelines of CIETAC. In the 2024 Rules, the arbitral tribunals can decide whether to apply or partially apply the Evidence Guidelines of the CIETAC (the “Guidelines”). The 2024 Rules also make clear that the Guidelines do not form an integral part of CIETAC arbitration rules, and the parties cannot use this as a reason or basis for not enforcing the arbitration award.

The text of the 2024 Rules is now available for online review. (Chinese version at present)

Reference:

中国国际经济贸易仲裁委员会新版《仲裁规则》于2024年1月1日起施行