Strategies for Success

3. What have been the SPC's most significant interpretations this year?

On February 23, 2016, the SPC promulgated the Interpretation on Several Issues Concerning the Application of the <PRC Property Law> (1) (Interpretation). The Interpretation provides detailed explanations on: disputes over immovable property registration and confirmation of rights in rem; the validity of preliminary registration; definition of “bona fide third parties” in special movable asset transfers; and the scope and validity of people's courts and arbitration commissions' legal documents, which can cause changes in the rights in rem. The promulgation of the Interpretation provides important guidance for resolution of disputes over rights in rem.

4. What should foreign investors be aware of when litigating in China?

(1) Firstly, the foreign investor should confirm whether it has executed a valid arbitration agreement with its counterparty, as the PRC Arbitration Law states that a valid arbitration agreement excludes litigation.

(2) Prior to litigation, the foreign investor should learn whether its home country has entered into an international treaty or has a reciprocal relationship with China, which would signify whether the effective foreign judgment could be recognized and enforced by a Chinese court.

(3) The foreign investor should select the governing law it is more familiar with.

5. Can you describe the latest trends in PRC arbitration?

Economic globalization and scientific and technological progress are pushing international arbitration into a higher stage of development. Internationalization and localization have become the most recent development trends.

On October 26, 2016, the Shenzhen Court of International Arbitration (SCIA) issued the 2016 version of its Arbitration Rules, the Procedural Guidelines on the Application of the UNCITRAL Arbitration Rules, and the Special Arbitration Rules for Maritime Logistics. The new rules not only broaden the scope of acceptable cases to investment arbitration cases between the government of a host country and investors of another country, but also mark the first touchdown of the UNCITRAL Arbitration Rules in China.

6. Do local courts recognize and enforce foreign arbitral awards? What are some tips for mainland enforcement?

In terms of the recognition and enforcement of foreign arbitration awards, mainland Chinese courts strictly implement the New York Convention. Since 2000, there have been a total of 20 cases relating to the Convention that were referred to the SPC involving a decision not to recognize and enforce a foreign arbitration award.

The reasons for these decisions were largely related to Article V of the New York Convention, which permits the refusal of recognition and enforcement of foreign awards if its application does not comply with domestic provisions. On the other hand, Chinese courts are reasonable in interpreting laws and applying the Convention, and are supporting and learning from international commercial arbitration practices.

If a foreign party ultimately wishes to enforce a foreign arbitration award in the PRC, we would advise: (1) reach a valid arbitration agreement; (2) select an appropriate and advantageous governing law; (3) have the arbitration conducted in the territory of a contracting state to the New York Convention to facilitate smooth recognition and enforcement of the foreign arbitration award by a Chinese court; (4) before instituting arbitration, determine whether there are provisions requiring that consultations be attempted first, and if so, strictly abide by such provisions; (5) do not include matters that Chinese laws specify to be unarbitrable in the arbitration claims, because the Chinese court may refuse recognition and enforcement on the grounds of violation of “public policy”; and (6) strictly abide by the PRC Civil Procedure Law's provisions on enforcement procedure so as to avoid a situation where the award becomes unenforceable due to exceeding the statutory time limit.

7. Will an award rendered by a Chinese arbitration center gain recognition and enforcement in other countries?

As China is a member of the New York Convention, applications for the enforcement of arbitration awards rendered by Chinese institutions may be made in other contracting states; furthermore, China has specified provisions on the mutual recognition and enforcement of arbitration awards in bilateral economic and trade treaties and judicial assistance treaties with other countries. The Convention and these treaties have become important legal bases for the recognition and enforcement of Chinese arbitration awards by foreign courts.

Since China's accession to the New York Convention in 1987, in practice, applications for the recognition and enforcement of Chinese arbitration awards in foreign countries have mainly been made under the Convention. According to statistical figures compiled by the secretariat of the China International Economic and Trade Arbitration Commission (CIETAC), Chinese arbitration awards have successfully secured recognition and enforcement in more than 20 countries around the world, including the U.S. and the UK.

8. What are the biggest challenges faced by a Chinese company involved in international arbitration?

The greatest challenge faced by Chinese companies in international arbitration is firstly a lack of preparation of evidence due to the different legal environments. Secondly, before a dispute arises, Chinese companies tend to put in an insufficient amount of studying and consideration of relevant documents, and have a relatively low awareness of the prevention of legal risks. Lastly, after a dispute, Chinese companies have limited communication and idea exchanges with their lawyers.

9. What is the status of mediation as an effective method of solving disputes in China?

Where the procedure is applicable, mediation generally offers a thorough and rapid resolution of controversies and easing of conflicts. However, in judicial practice, an excessive pursuit of a high mediation rate exists, ignoring the real claims of parties.

10. What are the major dispute resolution trends you see emerging in 2017?

Overall, based on the pressure exerted by the continuing slide in the economy, civil and commercial contract disputes will continue to increase, and arbitration and litigation will remain the principal means of dispute resolution.

1. 在过去的一年里，对诉讼产生重大影响的重要立法有哪些？

2016年9月3日，全国人大常委会发布了对《中外合作经营企业法》、《外资企业法》、《中外合资经营企业法》、《中华人民共和国台湾同胞投资保护法》四部法律的修改决定。根据修改后的内容，外资企业由审批制改为备案制，该变化将对相关合同生效要件约定产生重要影响。

2. 近年来发生的最普遍纠纷是什么？原因有哪些？

在中国，近年来发生的最普遍纠纷为民商事合同纠纷，根据2015年最高院统计，2015年全国法院收案的合同纠纷案件达到6631249件，上升30.82%，占所有收案案件的60.04%。合同纠纷成为中国最普遍的纠纷，原因如下：1）经济下行，合同主体出现偿债能力不足的情形明显增多；2）民事主体法律意识增强，规范及维权意识普遍提高。

3. 最高院今年最重要的司法解释是什么？

2016年3月1日，最高院发布了《最高人民法院关于适用〈中华人民共和国物权法〉若干问题的解释（一）》，该司法解释针对不动产登记与物权确认的争议、预告登记效力的确定、特殊动产转让中的“善意第三人”的规范以及发生物权变动效力的人民法院、仲裁委员会的法律文书的范围等方面作了详细的解释规定，该解释的颁布对于物权争议解决有着重要的指导意义。

4. 外国投资者在中国诉讼时应注意什么？

首先，外国投资者与涉诉他方是否签订有效的仲裁协议，根据中国《仲裁法》法律规定，有效的仲裁约定排除诉讼。

在诉讼前，提前了解外国投资者所在国与中国有无缔结国际条约或有互惠关系，即意味着最终外国投资者通过诉讼方式赢得案件，其是否有可能受到中国法院承认并执行生效判决。

外国投资者应选择自已较为熟悉的准据法。

5. 您能阐释最近中国仲裁的趋势吗？

经济全球化与科技进步，正推动国际仲裁迈向更高发展阶段，国际化、本土化成为近年来最新的发展趋势。

2016年10月26日，深圳国际仲裁院发布了2016版《深圳国际仲裁院仲裁规则》、《深圳国际仲裁院关于适用〈联合国国际贸易法委员会仲裁规则〉的程序指引》和《华南国际经济贸易仲裁委员会海事物流特别仲裁规则》，新的规则不仅受理案件范围扩大到东道国政府与他国投资者之间的投资仲裁案件，也标志着《联合国国际贸易法委员会仲裁规则》在中国的首次落地。

6. 中国内地法院承认、执行外国仲裁裁决吗？关于在大陆执行外国仲裁裁决有什么建议？

中国内地法院在承认和执行外国仲裁裁决方面，严格执行《纽约公约》的规定。 2000年以后，与《纽约公约》相关、上报最高人民法院并决定不予承认及执行外国仲裁裁决的案例共有20例。通过分析中国已生效的相关案例可知，不予承认及执行某些外国仲裁裁决的原因是，裁决具有公约第五条规定的可以拒绝承认与执行的情形，或者申请不符合国内执行程序相关规定。另一方面，中国法院在适用公约的过程中，合理地解释法律和公约，支持并监督国际商事仲裁。

若外国当事人欲最终在大陆执行外国仲裁裁决，根据我们的经验，提出如下建议：1）、达成有效的仲裁协议；2）、选择适当并对己方有力的的仲裁准据法；3）、为了外国仲裁裁决可以顺利被中国法院承认和执行，建议在《纽约公约》缔约国领土内进行仲裁；4）、在提起仲裁之前需审查是否有前置协商的约定按照仲裁协议的约定，若有前置协商程序，应严格遵照。 5）、仲裁请求中不得包含中国法律规定的不可仲裁事项，否则中国法院可以违反“公共政策”为由拒绝承认和执行；6）、严格按照中国民事诉讼法关于执行程序的若干规定，避免出现因超过法定期限而无法执行的情形。

7. 中国仲裁机关作出的仲裁裁决在国外得到认可、执行吗？

因中国为《纽约公约》成员国，故依据《纽约公约》的规定，中国仲裁机关作出的仲裁裁决可在其他缔约国所在地申请执行；此外，中国还在与一些国家的双边经贸条约或司法协助条约中规定了相互承认和执行仲裁裁决的条款。这些公约和条约成为外国法院承认和执行中国仲裁裁决的重要法律依据。

自中国于1987年加入《纽约公约》以来，在实践中，中国的仲裁裁决主要是通过《纽约公约》在中国境外得以申请承认和执行，根据中国国际经济贸易仲裁委员会秘书局统计的数据，依据《纽约公约》，中国的仲裁裁决已经在世界上包括美国、英国等国在内的20多个国家成功地得到了承认和强制执行。

8. 中国公司在国际仲裁中面临的最大挑战是什么？

首先，中国公司在国际仲裁中面临的最大挑战是因法律环境不同而导致的证据准备不充分；其次，在纠纷发生前，中国公司对争议文本的研究探讨不够，法律风险预防意识不高；最后，发生纠纷后，中国公司与律师沟通交流不充分。

9. 在中国，调解作为一种有效解决争议的方法的实践情况如何？

总体来说，在案件存在可调解的情形下，调解有利于争议双方较为彻底、迅速的解决纠纷，化解矛盾。但在司法实践中，也存在过分追求调解率，而忽略当事人真实诉求的情况。

10. 请对即将到来的2017年争议解决的主要趋势进行预测？

整体来看，基于经济持续下行的压力，民商事合同纠纷仍会持续增加，仲裁和诉讼仍然是争议解决的主要方式。

1. What have been the key legislative updates impacting contract litigation over the past 12 months?

On September 3, 2016, the Standing Committee of the National People's Congress issued the decision to amend four laws—the PRC Sino-foreign Cooperative Joint Venture Law, the PRC Wholly Foreign-owned Enterprise Law, the PRC Sino-foreign Equity Joint Venture Law and the PRC Law on the Investment Protection for Taiwanese Compatriots. Foreign-invested enterprises will be subject to the record filing system rather than examination and approval, and the move will have a major impact on the conditions for the entry into effect of relevant contracts.

2. Which types of disputes have been most common in the past year and why?

In recent years, civil and commercial contract disputes were the most common. According to the 2015 statistics of the Supreme People's Court (SPC), courts accepted a total of 6,631,249 contract dispute cases in 2015, representing an increase of 30.82% and accounting for 60.04% of all cases accepted. The reasons for contract disputes becoming the most common are: (1) with the weakening economy, the number of contractual entities that have become insolvent has increased markedly; and (2) civil subjects' awareness of laws, regulations and rights protection has increased.