We’re joined by legal expert Yan Qi to explore the enforcement of foreign arbitration awards in China, covering the New York Convention's impact, procedural intricacies, and evolving arbitration practices. Emphasizing preparation, procedural integrity, and the crucial role of experienced legal counsel, Yan highlights enforcement timelines, practical steps for recognizing awards, and the distinctions between arbitration awards and foreign court judgments.
Welcome to another episode of the China Business Law Podcast. In this episode, we talk with Yanqi Qiyan, a seasoned partner at Tahota Law Taihe Tai, one of China's premier law firms. We explore the complex terrain of arbitration awards in China and offer invaluable guidance for companies dealing with cross-border legal challenges.
Yanqi Qiyan brings over 15 years of extensive experience in Chinese and international law. Her journey commenced as a law counsel at a US international law firm in China, eventually transitioning to key in-house roles at multinational corporations. Yan's expertise spans international practices, mergers, acquisitions, and general corporate matters, making her an ideal voice on disputes concerning arbitration awards in China.
One of the chief topics addressed in this episode is the importance of arbitration awards for foreign companies dealing with Chinese entities. Art and Yan delve into the mechanisms by which arbitration awards can be recognized in China, emphasizing China's participation in the New York Convention. This treaty, unlike the situation with foreign court judgments, ensures a framework for the enforcement of international arbitration awards within China.
Yan elaborates on China's legal framework for recognizing foreign arbitral awards, highlighting the significance of the Supreme People's Court's notice and the incorporation of these regulations into China's civil procedure law. Five key issues have been addressed within Chinese law to facilitate the implementation of the New York Convention, ensuring clear guidelines for the recognition and enforcement of commercial arbitration awards.
The podcast contrasts the relatively straightforward process for arbitration awards with the complexities of enforcing foreign court judgments, which rely on bilateral treaties or reciprocal relations. Yan clarifies how the absence of a treaty between countries like the US and China can impact the enforceability of judgments and emphasizes the value of understanding these distinctions for businesses navigating cross-border disputes.
Yan outlines the procedural steps involved in getting an arbitration award recognized in China, including the need to ensure its effectiveness and the importance of having all relevant documents notarized and consularized. The discussion also touches on China's accession to the Hague Convention, simplifying certain processes for Hague member countries.
While the process is generally smooth, certain grounds can lead to the refusal of recognizing a foreign arbitration award. Yan highlights Article 5 of the New York Convention, which lists potential reasons for refusal, such as the invalidity of the arbitration agreement or procedural irregularities.
A notable development is Shanghai's recent legal ruling that permits foreign arbitration commissions to conduct ad-hoc arbitrations within China. This change could significantly streamline the enforcement process, rendering foreign arbitral awards more akin to Chinese awards in terms of recognition, thus saving time and reducing costs.
Art and Yan delve into the strategic considerations for companies deciding between arbitration inside or outside China. Important factors include the need for speed, confidentiality, and how public policy could impact the enforceability of awards. Yan offers insights into how China's public policy considerations are seldom invoked but can influence outcomes in cases dealing with issues like weaponry trading or cryptocurrency.
As the episode concludes, it is clear that the arbitration landscape in China is evolving, offering new opportunities for foreign companies to navigate the complexities of cross-border enforcement more efficiently. Yan's expertise provides a guiding light for companies seeking to protect their interests in the rapidly changing legal environment in China.
If you have questions, feel free to reach out to Yanqi Qiyan through her firm's website or LinkedIn. Her wealth of knowledge and experience remains an invaluable resource for anyone involved in cross-border legal matters with China.
Timestamps
00:00 Introduction and Guest Welcome
00:58 Guest Background and Experience
02:04 Understanding Arbitration Awards in China
02:40 New York Convention and Enforcement
05:37 Practical Steps for Enforcing Arbitration Awards
07:04 Challenges and Grounds for Refusal
12:20 Recent Developments in Arbitration
14:54 Injunctions and Enforcement
17:41 Choosing Between Arbitration and Court
19:24 Enforcing Foreign Arbitration Awards in China
21:06 Preparing for Recognition of Foreign Awards
23:01 Public Policy Considerations in China
24:26 Examples of Denied Awards
25:49 Impact of International Relations on Enforcement
27:33 Chinese Court's Approach to Enforcement
30:11 Remedies for Denied Recognition
31:46 Choosing Arbitration Location
35:31 Conclusion and Contact Information