WHY ARBITRATION

There are usually four alternatives in resolving international commercial disputes,i.e.negotiation,conciliation,arbitration and litigation.Among these,arbitration has an entrenched position as the most favored means for the resolution of disputes arising from international economic and trade transactions.

Arbitration has a number of inherent advantages over the other three alternatives:

I.Convenience

No any other proceedings including appeal or retrial shall be applied once the arbitral award is rendered.The date on which the arbritral award is made is the date on which the arbitral award comes into legal effect.Arbitration provides a flexible method,which can give a simple,quick,efficient and final solution to a dispute.

II.Full autonomy

"Full autonomy"is respected as the core of arbitration.Arbitration grants the parties complete autonomy in selection of the arbitration institute,arbitrators,arbitration venue,arbitration language,arbitration rules and the applicable law,etc.

III.Enforceabililty

The 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards(abbr."the New York Convention")lays down a convenient and generally accepted framework for the recognition and the enforcement of international arbitral awards.Under the Convention,the arbitral awards made in any signatory countries can be recognized and enforced through the competent courts of 145 countries and regions.

IV.Privacy

The arbitration case shall not be heard in open session.Without the consent of the claimant and the respondent,no third party can attend arbitration hearing and no information relating to the case can be disclosed to the mass press.The principle of confidentiality is highly respected by the arbitral tribunal and the arbitration commission.

WHY ARBITRATION IN CIETAC

China International Economic and Trade Arbitration Commission(abbr.CIETAC)is a unique international commercial arbitration institute in China,which was founded in 1954 with its headquarters in Beijing.In 1989 and 1990,CIETAC set up its Shenzhen and Shanghai commission respectively.CIETAC-Shenzhen and CIETAC-Shanghai are the integral parts of CIETAC,which adopt the same CIETAC Arbitration Rules and Panel of Arbitrators.

Since 1994,the quantity of caseload of CIETAC ranked the first among the international commercial arbitration institutes all over the world,and the impartiality of its awards has been recognized unanimously both at home and abroad.

CIETAC has a number of inherent advantages over litigation,namely:

I.Independent and impartial Arbitration Institute

CIETAC,a non.governmental institute,was set up under China Chamber of International Commence,it enjoys sound reputation for its independence and impartiality.

II. Expert arbitrators

The 490 arbitrators of CIETAC are appointed from among Chinese and overseas personages with special knowledge and practical experience in trade and economics,science and technology,law and other fields.

III.Full autonomy of parties

With the consent of CIETAC,the parties who submit the case to arbitration can choose to apply any other arbitration rules,which was concluded in the updated arbitration rules as effective from May loth,1998.

IV.Enforceability of ClETAC awards

Pursuant to the New York Convention,the arbitral awards of CIETAC can be applied for recognition and enforcement through the competent courts of 145 countries and regions.In addition,the courts of the signatory countries examine the CIETAC arbitration awards merely on the procedure issues,while the substantial issues are excluded.