CIETAC has amended its 2012 Rules in order to adapt to the development of the international economy and keep in line with the international practice for arbitration. The 2015 new Rules come into effect on January 1, 2015.

We shall focus on the following changes:

I. Emergency Arbitrator Procedure

Emergency Arbitrator has been adopted by arbitration center in USA, HongKong, Singapore, Sweden and other advanced arbitration centers. Emergency Arbitrator can help parties obtain emergency relief, especially when parties are not familiar with the competent court when commencing the arbitration procedure.

The adoption of Emergency Arbitrator by CIETAC shows CIETAC’s determination to keep in line with the advanced international practice and respect the free will of parties. And the adoption  of Emergency Arbitrator is for the convenience of HongKong Branch of CIETAC.

In accordance with Article 23, any party can apply to the Arbitration Court for emergency relief pursuant to the CIETAC Emergency Arbitrator Procedures (Appendix III). 

Appendix III stipulates, “A party requiring emergency relief may apply for the Emergency Arbitrator Procedures based upon the applicable law or the agreement of the parties; The party applying for the Emergency Arbitrator Procedures (the “Applicant”) shall submit its Application for the Emergency Arbitrator Procedures to the Arbitration Court or the arbitration court of the relevant sub-commission/arbitration center of CIETAC administering the case prior to the formation of the arbitral tribunal. ” 

II. Joinder of Additional Parties

Article 18 of the new Rules specifies: During the arbitral proceedings, a party wishing to join an additional party to the arbitration may file the Request for Joinder with CIETAC, based on the arbitration agreement invoked in the arbitration that prima facie binds the additional party. 

Where the Request for Joinder is filed after the formation of the arbitral tribunal, a decision shall be made by CIETAC after the arbitral tribunal hears from all parties including the additional party if the arbitral tribunal considers the joinder necessary. 

CIETAC shall have the power to decide not to join an additional party where the additional party is prima facie not bound by the arbitration agreement invoked in the arbitration, or where any other circumstance exists that makes the joinder inappropriate. 

III. Perfect Consolidation of Arbitration Cases

Under the 2012 Rules, upon the agreement both parties, the arbitral tribunal can consolidate  two or more arbitration cases. In accordance with Article 19 of the 2015 Rules,

1. At the request of a party, CIETAC may consolidate two or more arbitrations pending under these Rules into a single arbitration if: 

(a) all of the claims in the arbitrations are made under the same arbitration agreement; 

(b) the claims in the arbitrations are made under multiple arbitration agreements that are identical or compatible and the arbitrations involve the same parties as well as legal relationships of the same nature; 

(c) the claims in the arbitrations are made under multiple arbitration agreements that are identical or compatible and the multiple contracts involved consist of a principle contract and its ancillary contract(s); or 

(d) all the parties to the arbitrations have agreed to consolidation. 

2. In deciding whether to consolidate the arbitrations in accordance with the preceding Paragraph 1, CIETAC shall take into account the opinions of all parties and other relevant factors such as the correlation between the arbitrations concerned, including the nomination and appointment of arbitrators in the separate arbitrations. 

3. Unless otherwise agreed by all the parties, the arbitrations shall be consolidated into the arbitration that was first commenced. 

4. After the consolidation of arbitrations, the conduct of the arbitral proceedings shall be decided by the Arbitration Court if the arbitral tribunal is not formed, or shall be decided by the arbitral tribunal if it has been formed. 

IV. Special provision for CIETAC HongKong Arbitration Center

The  2015 new Rules specifies:

1. The arbitration case shall be governed by HongKong laws and the award rendered in CIETAC HongKong Arbitration Center is HongKong award; 
2. Parties can choose arbitrator outside CIETAC’s Panel of Arbitrators;
3. The fees can be charged based on international practice in CIETAC HongKong Arbitration Center;
4. And etc.

V. Summary Procedure

In accordance with Article 56 of the new Rules, The Summary Procedure shall apply to any case where the amount in dispute does not exceed RMB 5,000,000 unless otherwise agreed by the parties; or where the amount in dispute exceeds RMB 5,000,000, yet one party applies for arbitration under the Summary Procedure and the other party agrees in writing; or where both parties have agreed to apply the Summary Procedure. The threshold under the 2012 Rules is RMB 2,000,000.

VI. Arbitration Court

Article 2 of the 2015 new Rule specifies: CIETAC has an Arbitration Court (the “Arbitration Court”), which performs its functions in accordance with these Rules under the direction of the authorized Vice Chairman and the President of the Arbitration Court. 

The set up of Arbitration Court makes CIETAC more professional.

VII. Other Change

1. Service

In case of failure of service, service by public notary, entrustment or retention can be used.

2. Good Faith

Arbitration participants shall proceed with the arbitration in good faith. 

3. Replacement of Arbitrator

The Chairman of CIETAC shall make a final decision on whether or not an arbitrator should be replaced with or without stating the reasons. 

4. Enhance the Power of the Presiding Arbitrator

With the authorization of the other members of the arbitral tribunal, the presiding arbitrator may decide on the procedural arrangements for the arbitral proceedings at his/her own discretion. 

5. Engage a Stenographer

At the request of a party, the Arbitration Court may, having regard to the specific circumstances of the arbitration, decide to engage a stenographer to make a stenographic record of an oral hearing, the cost of which shall be advanced by the parties. 

6. Special Provision Regarding Increasing Arbitrator’s Remuneration

The Arbitration Court shall, after hearing from the arbitrator and the party concerned, determine the arbitrator’s special remuneration with reference to the international practice.