CHINA Law and Practice Contributed by: Tim Yimin Liu, Sybil Xueting Yuan and Cassie Wenjing Li, Global Law Office
award within six months of their constitution; simpli - fied procedures require issuance within three months. For domestic arbitrations, the period is typically four months. Extensions may be granted with approval from the chairperson of the arbitration institution. 10.2 Types of Remedies Chinese law does not impose specific statutory limita - tions on the types of relief that an arbitral tribunal may award. In practice, tribunals may grant a wide range of civil remedies upon the parties’ request, including: • monetary compensation; • specific performance; • termination of the contract; • damages; • declaratory relief regarding rights and obligations; Certain types of relief, however, are subject to statu - tory constraints. For instance, punitive damages are only available where expressly provided by law, such as under the Law on the Protection of Consumer Rights and Interests, which entitles consumers to seek punitive damages. 10.3 Recovering Interest and Legal Costs Interest The arbitral tribunal is empowered to award interest at the request of a party and in accordance with appli - cable laws, regulations and contractual provisions. Interest is typically calculated based on the contrac - tual agreement, statutory provisions, or the prevailing loan prime rate (LPR) published by the central bank of China (the People’s Bank of China). Legal Cost An arbitral award is generally required to address the allocation of legal costs. According to the arbitration rules of major institutions, the arbitral tribunal typical - ly has discretion to determine the proportion of legal costs to be borne by each party based on factors such as: • restitution of property; and • cessation of infringing acts.
• the actual workload of the parties and their coun - sel; and • the amount in dispute. The principle of “costs follow the event” is commonly applied. Furthermore, if the parties have agreed in the contract that the losing party shall bear the prevailing party’s legal costs, arbitral tribunals will generally uphold and enforce such provisions. In China, arbitration awards are final and binding, and there is no right to appeal the award. If a party is dis - satisfied with the arbitration award, there are primarily two remedies available. Application to Set Aside an Arbitral Award If a party presents evidence proving that the award has one of the following circumstances, it may apply to the Intermediate People’s Court at the location of the arbitration institution to set aside the award within six months from the date of receipt of the award (see 11. Review of an Award 11.1 Grounds for Appeal • The subject matter of the award is not within the scope of the arbitration agreement, or the arbitra - tion institution has no jurisdiction. • The composition of the arbitral tribunal or the arbi - tration procedure violated statutory procedures. • The evidence on which the award is based is forged. • The opposing party concealed evidence sufficient to affect a fair award. • The arbitrator engaged in bribery, corruption, par - tiality or made a perverse ruling during the arbitra - tion. • The people’s court determines that the award violates public interest and shall order the award to be set aside. Article 58 of the PRC Arbitration Law). • There is no arbitration agreement.
• the cause of the dispute; • the outcome of the case; • the complexity of the case;
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