Chinese is becoming more accepted as an arbitral language, but still plenty of challenges for international arbitrators dealing with China-related cases.

Sally Harpole, a Hong Kong-based arbitrator and mediator who has arbitrated in over 100 international commercial disputes in Asia, Europe and North America, spoke recently at an international arbitration lecture at the Supreme Court of New South Wales in Sydney.  Hosted by Clayton Utz and supported by the University of Sydney, the lecture – Arbitration: speaking your language? What is the language of resolution in the Asia-Pacific region? – discussed the impact of Chinese arbitration and Chinese language arbitration on the culture of international arbitration.

Harpole highlighted the rise of arbitration being used as a preferred method of dispute resolution in China by citing the caseloads being handled by regional arbitration institutions. In 2009, Wuhan received 9,000 cases (mostly domestic), Guangzhou received 43,000 and Beijing received 1,830 matters (72 which are international). The rise of China-related arbitration has also been evident across the globe. In 2009, the Korean Council for International Arbitration (KCIA) saw the number of China-related cases overtaking those related to the US for the first time. At the Hong Kong International Arbitration Centre (HKIAC), one-third of its international arbitration matters involve Chinese parties.

Despite this significant trend, the challenges regarding Chinese arbitration have not been extensively discussed. Harpole is fluent in Chinese, English and Spanish, and talked about the language issues in arbitration and how the choice of language is decided by parties and tribunals. According to her, considerations include the language used in the contracts binding both arbitration parties, the discretion given to arbitration tribunals and the territorial approach where the venue of arbitration and its main language is most often used. In general, she said, the Chinese language also becoming more commonly used in other international arbitration institutions in Singapore, India, Australia, Korea, Hong Kong and Japan.

25% of the HKIAC’s administrative arbitration is said to consist of dual-language (Chinese and English) contracts. At the China International Economic and Trade Arbitration Commission (CIETAC), 80% of international arbitrations are conducted in Chinese – and arbitral awards are also given in Chinese. However, as part of CIETAC’s efforts to become a top-tier international arbitration venue, English is increasingly being accommodated. ALB

How to tackle language issues in arbitration: Sally Harpole’s tips

1. Pay close attention to the language used in the contracts for both parties
2. Thoroughly consider the options of choosing both languages and its ramifications; consider a bilingual-language arbitration clause and think about either language diplomatically
3. If discretion is left with the tribunal, proactively raise the implications of the matter
4. Discuss and negotiate with the tribunal and the parties on the language to be used if this can be worked out procedurally
5. Continually assess the necessity of bilingualism as arbitration goes forward
6. Ask arbitral institutions to provide solutions for the dilemma of using different languages
7. Identify the most proficient language for both parties
8. Consider developing relationships with lawyers who are familiar with the language and cultures of different regions; learn about their expectations and educate them about­ yours

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