CHINA Trends and Developments Contributed by: Ernest Yang, Xiaoshan Chen, Han Ma and Dewey Song, DLA Piper UK LLP
The First Case of an Early Dismissal Decision Made by an Arbitral Tribunal In March 2024, the Xi’an Arbitration Commission issued the first early dismissal decision in Mainland China at the request of the respondent of an arbitra - tion. The case involved a dispute over a co-operation agreement. The respondent argued that the claim - ant’s arbitration claims were manifestly lacking in legal basis and that the arbitration claims exceeded the jurisdiction of the tribunal, thereby submitting an early dismissal application before the first hearing. The arbitral tribunal initiated the early dismissal proce - dure according to the newly announced 2023 Arbitra - tion Rules of the Xi’an Arbitration Commission, and granted the early dismissal application after reviewing the parties’ submissions. The early dismissal proce - dure is a response to the practical need for efficient dispute resolution and resolves the parties’ disputes in a cost-effective manner. Apart from Xi’an Arbitration Commission, several other arbitration institutions in Mainland China have introduced an early dismissal procedure into their arbitration rules. These include the China International Economic and Trade Arbitration Commission (CIETAC) 2024 Arbitration Rules, the SHIAC 2024 Arbitration Rules and the Shanghai Arbitration Commission (SAC) 2025 Arbitration Rules. Furthermore, some arbitration institutions have prom - ulgated specific guidelines on the early dismissal procedure. For example, in June 2025, SHIAC imple - mented the Guidelines for the Application of Early Decisions to provide guidance to the arbitral tribunal and parties in employing the early dismissal proce - dure. The nine-article Guidelines highlight three core principles: • limited application – the early decision mechanism only applies to claims clearly beyond the tribunal’s jurisdiction, lacking legal basis or obviously unmer - itorious, even if the facts are proven in the interna - tional arbitration cases, with only the tribunal –ie, excluding the SHIAC – being authorised to apply the Guidelines; • balance between efficiency and due process – while empowering tribunals to determine the
admissibility and hearing methods for early deci - sion applications, the Guidelines require considera - tion of case specifics, procedural stages and the need to avoid unnecessary delays and costs, while safeguarding parties’ right to be heard and pre - venting abusive applications; and • alignment with the arbitration rules – tribunals may issue early decisions in various forms, including interim, partial or final awards in accordance with the applicable arbitration rules. The BAC Implements Fast-Track Mediation- Arbitration Procedure On 15 April 2025, the BAC promulgated the Rules for the Fast-Track Procedure of Mediation-Arbitra - tion Linkage. The Rules allow parties to convert pre- arbitration settlement or mediation agreements into legally enforceable documents through the “arbitra - tion confirmation” procedure. If the agreement terms are unclear, the arbitral tribunal may facilitate further mediation on the dispute. These measures integrate mediation’s flexibility with arbitration’s finality and ensure thorough dispute resolution. Financially, the Rules introduce a special fee structure that significantly reduces costs and eases the parties’ financial burden. For disputes exceeding CNY1 billion, fees are only 20% of the arbitration fee of a regular proceeding. Increasing International Recognition of PRC Arbitral Awards In 2024 and 2025, a significant number of PRC arbi - tral awards were recognised and enforced in multiple countries and regions, marking the increasing inter - national recognition of awards rendered by arbitra - tion institutions in Mainland China. Courts in the USA, Canada, Singapore and Indonesia, among other coun - tries, have also successively recognised and enforced awards made by PRC arbitration institutions. These cases include the following: • on 12 January 2024, a California court recognised and enforced a BAC award; • on 22 January 2024, a Saudi court recognised and enforced a CIETAC award, involving an amount as high as CNY240 million;
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