Why Choose Arbitration Over Litigation when dealing with Chinese supplier?

Arbitration has always been preferred choice when resolving the commercial disputes. And compared with other dispute settlements, arbitration enjoys the following advantages:

There are a great variety of measures for commercial contracting parties to resolve their disputes, however, among them only litigation judgments and arbitral awards possess binding powers and are enforceable. Arbitration award is different from the court decisions for it can not be appealed. Once made, the arbitration award shall be final and binding on the parties. Although the arbitration award may be revoked, not recognized or not implemented by the court at the place where the arbitral award is made, the reasons for those court rulings are very limited. Therefore, in generally the arbitration concerning foreign affairs is limited only by procedural issues.


The Principle of Autonomy of Will

In arbitration, the parties have the right to choose arbitrators, places of arbitration, the language of the arbitration and the applicable law. The parties may also make terms on issues concerning trial, the submission of evidence and statement so as to design arbitration procedures to meet their own special needs. In case when there is no agreement between the parties, then the arbitration court shall prevail to decide. Thus, compared with the rigorous and time-consuming court proceedings, arbitration process are more flexible.

Confidentiality

Arbitration case shall not be heard in public, which can effectively protect the party ‘s trade secrets and business reputation .

The Arbitration Award Can Be Recognized and Enforced Internationally

According to the latest data, by February 28, 2005, altogether 135 countries has become the member of the Recognition and Enforcement of Foreign Arbitral Awards (i.e. 1958 New York Convention). Under the Convention, arbitral awards can be recognized and enforced in these countries. In addition, the arbitral award can also be enforced according to other international convention and provisions concerning arbitration. In 1987, China joined the New York Convention. Upon the accession China made certain commercial reservation and reciprocity reservation.

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