SPC Issues Interpretation on Jurisdictional Issues Arising from CIETAC Split

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In a welcome development, the PRC Supreme People’s Court (the “SPC”) issued on July 15, 2015 an interpretation addressing various jurisdictional issues arising from the decision in mid-2012 of the former CIETAC Shanghai and South China Sub-Commissions to become independent arbitral commissions. The interpretation provides valuable guidance from the SPC on the jurisdiction of CIETAC and the former CIETAC Shanghai and South China Sub-Commissions over disputes referred to arbitration administered by the “CIETAC Shanghai Sub-Commission” or the “CIETAC South China Sub-Commission.” The interpretation offers welcome clarification of the jurisdictional issues arising from the split, and may help to restore confidence among users of PRC arbitral commissions.

BACKGROUND TO AND IMPACT OF THE CIETAC SPLIT -

Headquartered in Beijing, the China International Economic and Trade Arbitration Commission (CIETAC) is the most commonly-used arbitral commission in the PRC. In mid-2012, its former Shanghai and South China Sub-Commissions very publicly declared their independence from CIETAC. This move followed a dispute over the implementation by CIETAC’s Beijing headquarters of a new set of arbitration rules in 2012, which permitted the Sub-Commissions to accept applications and administer cases only with authorization from CIETAC headquarters in Beijing. In late 2012, the South China Sub-Commission changed its name to the South China International Economic and Trade Arbitration Commission/Shenzhen Court of International Arbitration (SCIA). In April 2013, the Shanghai Sub-Commission followed suit and changed its name to the Shanghai International Economic and Trade Arbitration Commission/Shanghai International Arbitration Center (SHIAC).

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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