On September 9, 2024, the Supreme People's Court held a press conference to release the Annual Report of the Supreme People's Court on Judicial Review of Commercial Arbitration (2023) and answer questions from reporters. Wang Shumei, deputy ministerial-level full-time member of the Adjudication Committee of the Supreme People's Court, Yang Xiangbin, director of the Public Legal Services Administration of the Ministry of Justice, Shen Hongyu, president of the Fourth Civil Division of the Supreme People's Court, and Hu Fang, vice president of the Fourth Civil Division of the Supreme People's Court, attended the press conference, which was presided over by Lin Wenxue, spokesperson of the Supreme People's Court. At the press conference, Wang Shumei, a full-time member of the Adjudication Committee of the Supreme People's Court, introduced the Annual Report on the Judicial Review of Commercial Arbitration of the Supreme People's Court (2023).
Arbitration is an important part of the diversified dispute resolution mechanism in the social governance system with Chinese characteristics, and it is also an internationally accepted commercial dispute resolution method, which plays an important role in efficiently resolving conflicts and disputes, promoting international economic and trade cooperation, and helping to create a market-oriented, law-based and international business environment. The healthy development of arbitration is inseparable from the support and supervision of the judiciary. In 2023, the people's courts adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the spirit of the 20th National Congress of the Communist Party of China, thoroughly implemented Xi Jinping Thought on the Rule of Law, attached great importance to improving the quality and efficiency of judicial review of arbitration, strengthened support and supervision for arbitration, and supported the construction of an international commercial arbitration center.
In order to fully demonstrate the achievements of the people's courts' judicial review of arbitration, summarize the experience of judicial review of arbitration in a timely manner, and unify the standards of adjudication, the Fourth Civil Division of the Supreme People's Court organized the compilation of the Annual Report of the Supreme People's Court on Judicial Review of Commercial Arbitration (2023), which was released today.
The first part introduces the new development of judicial review of commercial arbitration in mainland China in 2023.
In 2023, the Supreme People's Court actively promoted the continuous improvement of arbitration legal rules and deeply participated in the revision of the Arbitration Law. Establish a working exchange and consultation mechanism with the Ministry of Justice, and clarify work tasks on key matters such as improving the judicial supervision mechanism for arbitration; Publish typical cases of judicial review of arbitration, unify the standards of judicial review of arbitration, and standardize and guide arbitration institutions and arbitrators to handle arbitration cases in accordance with the law; The Supreme People's Court issued the Guidelines for the "One-Stop" Diversified Platform for Diversified Resolution of International Commercial Disputes (for Trial Implementation) to iteratively upgrade the "one-stop" platform; Strengthen dialogue and exchanges with judicial organs and arbitration institutions of various countries, and promote the construction of the mainland international commercial arbitration center. Courts in Beijing, Shanghai, Zhuhai and other places have established mechanisms for reporting typical cases of judicial review of arbitration to regulate the exercise of the power of judicial review of arbitration.
The second part is a summary of the 2023 national arbitration judicial review cases.
In 2023, courts across the country concluded more than 16,000 judicial review cases of commercial arbitration. Among them, more than 3,800 cases were concluded in which an application was made for confirmation of the validity of an arbitration agreement, more than 10,800 applications for the revocation of arbitral awards, 75 applications for recognition (recognition) and enforcement of overseas arbitral awards, and more than 1,700 applications for non-enforcement of arbitral awards. In addition, courts across the country have also concluded more than 5,100 arbitration preservation cases. The characteristics of judicial review of arbitration throughout the year are as follows:
First, the Supreme People's Court has clarified the review criteria through the handling of cases submitted for verification. In 2023, the Fourth Civil Division of the Supreme People's Court handled a total of 29 arbitration judicial review and verification cases, of which 18 agreed to the handling opinions of the court, 7 disagreed with the handling opinions of the court, and 4 returned the cases for supplementary ascertainment. In the case of the application for revocation of the arbitral award by the claimant Li and the respondent Chen, the Supreme People's Court held that the arbitral award supported the exchange between virtual currency and legal tender in disguise, violated the mainland's financial regulatory policy on prohibiting virtual currency investment and trading activities, and constituted a statutory reason for revocation of the arbitral award in violation of the public interest, and agreed with the lower court's application for revocation of the arbitral award.
Second, the low withdrawal rate and high preservation rate reflect the support for arbitration position. In 2023, courts across the country revoked or partially revoked 552 arbitral awards, with a revocation rate of 5.11%, which is basically the same as the revocation rate of 5.28% in 2022. More than 5,100 arbitration preservation cases were concluded, of which more than 4,900 were supported by the courts, with an support rate of 95.73%. At the same time, local courts actively promote the organic connection between litigation and arbitration, and continue to explore ways and means to improve the efficiency of arbitration preservation, so as to promote arbitration to play an important role in diversified dispute resolution mechanisms. For example, in June 2023, the Shanghai court launched an online mechanism for arbitration property preservation to improve the efficiency of arbitration preservation. The Xiamen Intermediate People's Court and the Xiamen Arbitration Commission signed the "Implementation Opinions on the Organic Connection between Litigation and Arbitration and the Improvement of Multiple Dispute Resolution Mechanisms", establishing 10 working mechanisms such as judicial review and feedback with the case.
The third is to strengthen cross-border judicial assistance and promote the construction of an international commercial arbitration center. In 2023, courts across the country ruled on 69 cases of recognition (recognition) and enforcement of overseas arbitral awards. The recognition and enforcement of foreign arbitral awards includes not only awards made by more than a dozen foreign arbitration institutions such as the International Court of Arbitration of the International Chamber of Commerce, the Singapore International Arbitration Center, the Switzerland Court of Arbitration for Sport, the Japan Commercial Arbitration Association, and the International Commercial Arbitration Court of the Federal Chamber of Commerce and Industry of Russia, but also awards rendered by ad hoc arbitral tribunals in United Kingdom, India and other countries. In three cases, the courts across the country have rejected applications for recognition and enforcement due to the fact that the statute of limitations has expired, the identity of the respondent is uncertain and the jurisdiction cannot be determined, and the court of the country where the award has been made has applied for the revocation of the arbitral award, and other foreign arbitral awards have been ruled to be recognized and enforced, reflecting the mature judicial review concept and adjudication thinking of the people's courts, and further demonstrating the friendly attitude and responsibility of a major country in fulfilling treaty obligations in good faith. In addition, the people's courts strengthened inter-regional judicial assistance and concluded 32 applications for recognition and enforcement of Hong Kong arbitral awards, including 30 by the Hong Kong International Arbitration Centre, 1 by the International Court of Arbitration of the International Chamber of Commerce and 1 by the ad hoc arbitral tribunal. On September 5, the Supreme People's Court released six typical cases in support of arbitration in Hong Kong, and the judicial function of the people's courts in supporting Hong Kong arbitration in accordance with the law and promoting the high-quality development of international arbitration has become more prominent.
The third part is the 2023 Arbitration Judicial Review Cases and Adjudication Rules.
This part has sorted out more than 30 cases, summarized the standards of judicial review of arbitration and the ideas of adjudication, and excerpted 10 cases for release at today's press conference. Embody the following principles:
First, uphold the principle of respecting the parties' willingness to arbitrate, and interpret the arbitration agreement in a way that is conducive to its validity. For example, in domestic arbitration judicial review cases, as long as the uniqueness of the arbitration institution can be determined, the validity of the arbitration agreement is recognized, and the parties are respected and encouraged to resolve disputes by arbitration.
Second, uphold the concept that supervision is support, and carefully review arbitral awards. Carefully review the parties' applications for revocation or non-enforcement of arbitral awards, and respect the finality of the arbitral award. Fully protect the due process rights of all parties, fully supervise the improper conduct of arbitrators, and safeguard the legitimate rights and interests of the parties. The concept of judicial support and promotion of arbitration development has been continuously improved.
Third, uphold the principle of prudent interpretation and accurately define the public interest. Strictly grasp the circumstances under which an arbitral award can be revoked or not enforced on the grounds that it violates the public interest, so as to avoid the abuse of the cause due to the large room for interpretation. Arbitral awards that negate the mainland's effective judicial rulings and violate financial regulatory provisions shall be revoked or not enforced ex officio, so as to safeguard the country's fundamental legal and financial order.
Fourth, uphold the position of "conducive to the enforcement of awards" and demonstrate the responsibility of a major country. Accurately determine the applicable law of foreign-related arbitration agreements, actively identify foreign laws, accurately apply the provisions of the New York Convention, follow the principle of good faith performance of treaties, recognize and enforce foreign arbitral awards in accordance with the law, and create a friendly judicial environment for cross-border enforcement of awards.
Fifth, uphold the spirit of the times and study and respond to new situations and new problems. Promote the improvement of the arbitration system in mainland China through judicial practice, and promote the resolution of conflicts and disputes with typical cases. The determination of the validity of the arbitration clause in the standard clause of the online consumer contract reflects the necessity of procedural protection for the parties in Internet arbitration cases. The determination that the arbitration clause of the property service contract in the early stage is legally binding on the owner demonstrates the clear position of the people's court in supporting the integration of arbitration into grassroots social governance and playing a greater role in the diversified resolution of conflicts and disputes.
The Third Plenary Session of the 20th Central Committee of the Communist Party of China pointed out that it is necessary to strengthen the construction of foreign-related rule of law, improve the international commercial arbitration system, and cultivate world-class arbitration institutions. Judicial supervision of arbitration is a necessary guarantee for maintaining the credibility of arbitration. The people's courts will continue to thoroughly implement Xi Jinping Thought on the Rule of Law, fully implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, firmly establish the concept of win-win, multi-win, and win-win, and put the concept of supervision as support and support as supervision throughout, handle all kinds of arbitration judicial review cases fairly and efficiently, promote the high-quality development of arbitration, continue to enhance the international credibility and influence of China's judiciary and arbitration, and contribute to the rule of law to create a market-oriented, law-based and international first-class business environment, help high-level opening-up, and promote Chinese-style modernization!
Transferred from: Information Bureau of the Supreme People's Court
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