The New York Convention in China : from a transnational law aspect

Abstract

China’s adoption of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the ‘New York Convention’) is widely viewed as essential for the development of arbitration in China. The New York Convention entered into effect in China in 1987. This demonstrates China’s dedication to establishing a rule-based and open market, assuring foreign investors in terms of the recognition of enforcement of foreign arbitral awards in China. It also indicates China embracing a market-oriented economy, which contributed to a surge in cross-border transactions and inbound capital flow to China in the late 1980s and 1990s. Adopting the New York Convention in China has strengthened the connection between the Chinese legal system and international law, facilitating the alignment of China’s arbitration legislation with internationally recognised arbitral rules and practices. From a transnational law perspective, this chapter focuses on implementing the New York Convention in Chinese mainland. It seeks to answer the research question: how does China enforce the New York Convention? The first part briefly reviews the development of arbitration in China and traces the process of internalising the content of the New York Convention into Chinese legal system. This chapter also examines the role of Chinese domestic courts in enforcing the New York Convention. Selected domestic cases related to enforcing the New York Convention, particularly in the cross-border legal context, are highlighted. The chapter concludes with a brief appraisal of the recently proposed amendment to China’s Arbitration Law and explores how it features in the New York Convention