The intensive commercial relations between European and Chinese partners present challenges with respect to the drafting of effective and mutually acceptable agreements for the resolution of disputes. Despite recent improvements in law and practice, the Chinese court system, owing to the unpredictability of the outcome of a case, is frequently not a serious option for foreign entities. Reciprocally, Chinese parties tend to avoid agreements to dispute resolution before unknown and culturally unfamiliar national courts in European countries. For these and other reasons, contracts between European and Chinese parties often include agreements to arbitration. In this context and in light of recent changes to both the Chinese arbitration law and the CIETAC Rules of Arbitration, a continuing need exists for up-to-date information and elucidation respecting the drafting of China-related arbitration agreements. It is that need which this client alert (in German) seeks to address.
