"When will mankind be convinced and agree to settle their difficulties by arbitration?" asked Benjamin Franklin back in the eighteenth century. In the case of China investors, the answer seems to be "right now".

The China International Economic and Trade Arbitration Commission (CIETAC) has seen a significant rise in arbitration work – due both to the Chinese economy becoming more international and the GFC.

According to CIETAC statistics, the number of cases involving foreign parties has grown steadily. Disputes have arisen over a wider range of matters in many different sectors, such as issues regarding derivative products, funds management, operating rights to online games, venture capital investments and prohibition of competition.

The parties concerned have also increasingly taken advantages of CIETAC's flexible procedures, appointing more foreign arbitrators and arbitrators who are not listed on CIETAC's panel of arbitrators. Meanwhile, English has been more often used during arbitration proceedings.

"China's fast-growing economy, combined with its increasing integration with the global economy, means there is a higher level of cross-border transactions and business activity in emerging industries and financial markets. The rapid growth of economic activity is accompanied by a rising number of disputes. Arbitration and other dispute resolution services, therefore, are now in strong demand," said Yu Jianlong, secretary-general of CIETAC.

Yu cited that an advanced legal and judicial framework governing arbitration and Chinese parties' growing recognition of the value of alternative dispute resolution are also causing in the big uplift in arbitration-related work.

Having recognised the current trends in arbitration services and demand, CIETAC is taking a series of initiatives to further improve its management, quality of service and standards for arbitrator appointment, as well as continuing to integrate international practices into its system and operation.

As part of its effort to boost its brand awareness in Asia-Pacific, CIETAC has partnered up with ALB to provide regular updates to the region's business leaders and lawyers on CIETAC's development and events, regulatory and legislative changes concerning arbitration in China, the enforcement of foreign arbitration awards in China and the enforcement of Chinese arbitration awards overseas. A CIETAC column will be published in ALB China magazine and on the ALB China website each month for the next 12 months.

"Through ALB's print and online media platform, the CIETAC columns aim to promote a better understanding of arbitration among the legal profession and the business community, and push for broader use of arbitration to solve commercial disputes," said Yu.

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