arbitration in china

Am I allowed to have an arbitration provision in our shipping agreement with a factory in Shanghai?

Can we make them arbitrate in Singapore.

The shipment value is approx. 100,000 USD.

Yes and yes. Most Chinese businesses try to insist on a CIETAC arbitration clause. CIETAC is the official chinese arbitration body. Maybe not as palatable to non-chinese? ICDR (NY based international arbitration body) and SIAC (Singapore based international arbitration body) have a joint venture arbitration body called ICDR Singapore. Usually acceptable to Chinese if not favored by them. Enforcement of awards in Chinese courts in the event of non-compliance with arbitrator's decision sometimes dicey, regardless of forum, although their law provides for such enforcement.

very helpful! thank you!!

Will look into it further too.

I would avoid local arbitrators. My experience was they were somewhat biased.

At least Singapore is somewhat more neutral.

Enforcement of awards in Chinese courts in the event of non-compliance with arbitrator's decision sometimes dicey, regardless of forum, although their law provides for such enforcement.

[yctp]

Originally Posted by Unregistered Am I allowed to have an arbitration provision in our shipping agreement with a factory in Shanghai? Can we make them arbitrate in Singapore. The shipment value is approx. 100,000 USD.

Try the following:

China International Economic and Trade Arbitration Commission

(CIETAC)

Model Arbitration Clause

"Any dispute arising from or in connection with this Contract shall be submitted to China International Economic and Trade Arbitration Commission for arbitration which shall be conducted in accordance with the Commission's arbitration rules in effect at the time of applying for arbitration. The arbitral award is final and binding upon both parties."

All the best,

Ken Stone