Solving international commercial dispute by arbitration

Arbitration refers to a legal system in which the parties to civil dispute reach an agreement, voluntarily submit the dispute to a selected third party to make a ruling according to certain procedural rules and principles of fairness, and have the obligation to perform the ruling. Arbitration is a kind of private behavior, that is, private referee behavior, rather than national referee behavior. It is a way to solve civil (commercial) disputes together with reconciliation, mediation and litigation.

However, arbitration is subject to the supervision of the state according to law. The state can intervene in the validity of the arbitration agreement, the formulation of arbitration procedures and the execution of the arbitration award through the court, and in case of the involuntary execution of the parties, in accordance with the scope prescribed by the law of the jurisdiction. Therefore, arbitration is judicial and an important part of China judicial system.

It is generally believed that the advantage of the arbitration system is that the procedure is simple, and only one award is needed to take effect; The evidence requirements are not so rigid. For example, if there is a reasonable logical chain to explain, the copy can also become evidence, which is not allowed in the proceedings; The composition of arbitrators is characterized by scholar type, the discussion of issues is relatively thorough, and the atmosphere of arbitration is relatively loose; The most obvious advantage of arbitration is that in foreign-related arbitration, arbitral awards are generally applicable in all countries participating in international conventions. The disadvantage of arbitration is that it is not very procedural and the cost is high.
The China International Economic and Trade Arbitration Commission (CIETAC) is one of the major permanent arbitration institutions in the world.