SCIA Delegation Visits Spain for Asia- Europe-Latin America Cooperation on International Arbitration

From June 17 to 20, 2019, a delegation of the Shenzhen Court of International Arbitration (also known as the “South China International Economic and Trade Arbitration Commission” and “Shenzhen Arbitration Commission”, the “SCIA”) led by Peter Malanczuk, Council member of SCIA and member of the China’s Supreme People’s Court International Commercial Experts Committee, and LI Qiuliang, Assistant President and Chief Operation Director of SCIA paid a visit to Madrid, Spain, to attend the Latin American Arbitration Day Seminar, and to conduct several exchanges and visits there.

Cohosted by the Club Español del Arbitraje (CEA) and the Inter-pacific Bar Association (IPBA) and supported by SCIA, the Latin American Arbitration Day Seminar drawn participants from nearly 40 countries and focused on the current development of and differences between international arbitration practices in Asia and Latin America, and discussed the cooperation and innovation in international arbitration. On behalf of SCIA, Peter Malanczuk delivered a keynote speech at Session II of the Seminar- “Asia vs. Latin America: What the Asian Arbitration Practice Can Offer- Pragmatic Perspectives”, introducing the development of arbitration in China from the perspective of SCIA’s innovative practices and promoting “China Shenzhen Rules”. Delegates from Europe, Latin America, Asia, North America and other regions, and representatives from the ICC International Court of Arbitration and other international organizations, attended the Seminar and delivered speeches.

In his keynote speech, Peter Malanczuk reviewed and described in detail SCIA’s history of development, arbitration cases, diversified dispute resolution mechanisms, dispute resolution services and international cooperation with respect to the Guangdong-Hong Kong-Macau Greater Bay Area (“GBA”) and the Belt and Road Initiative (“BRI”), and innovation in arbitration rules, etc. He noted that, established in 1983 as the first arbitration institution in the GBA, SCIA has been exploring innovation and partnering with other institutions with the joint support of domestic and foreign legal and business communities to promote the internationalization and modernization of China’s arbitration practices, in accordance with its core values of “independence, impartiality and innovation” and based on the needs and status quo of domestic and international dispute resolution. In recent years, SCIA has, based in Shenzhen and through partnership with Hong Kong and Macau, pursued innovation on an ongoing basis, as manifested in the following aspects:

First, innovation in governance structure. Through legislation of Shenzhen Special Economic Zone in 2012, SCIA became the first arbitration institution in mainland China to conduct statutory body reform and adopt an international council-centered corporate governance structure. On June 1, 2019, the amended Regulations on Shenzhen Court of International Arbitration came into effect, further highlighting the statutory, international, market-based, and globalized features of SCIA. The Regulations has improved SCIA’s corporate governance structure and required that at least one third of members of the Council should be overseas professionals from Hong Kong, Macao and other regions, highlighting its connection to the GBA. Currently, 7 of the 13 members of the Council are from overseas. 

Second, innovation in diversified dispute resolution mechanisms. SCIA has developed diversified dispute resolution mechanisms, such as “mediation + arbitration” and “negotiation facilitation + arbitration”, and established a number of dispute resolution platforms, including the GBA Arbitration and Mediation Alliance, Shenzhen Securities and Futures Dispute Resolution Center, and Negotiation Facilitation Center to better provide market-based, specialized and diversified dispute resolution services to the market. Now, the parties to cases arbitrated and mediated by SCIA are from 119 countries and regions.

Third, innovation in the international composition of arbitrators. In 1984, SCIA took the lead in China for engaging overseas arbitrators on its panel. At that time, 8 of its first 15 panel of arbitrators were from overseas. On February 21, 2019, SCIA issued a new panel of arbitrators which contains 890 arbitrators, including 360 overseas arbitrators from 76 countries and regions. 

Fourth, innovation in arbitration rules. In the context of the GBA national strategy and the BRI, SCIA has continuously innovated arbitration rules according to the needs of domestic and foreign parties. On February 21, 2019, SCIA released its new arbitration rules. Currently, SCIA has in place a complete system of arbitration rules, including the SCIA Arbitration Rules, SCIA Arbitration Rules for Financial Loan Disputes, SCIA Guidelines for the Optional Appellate Arbitration Procedure, SCIA Guidelines for the Administration of Arbitration under the UNCITRAL Arbitration Rules, SCIA Rules of Maritime and Logistics Arbitration, and SCIA Online Arbitration Rules. Focusing on the principle of party autonomy, SCIA has enhanced the features of specialization and internationalization of its new rules. In particular, SCIA pioneers an optional appellate arbitration procedure to satisfy the demand of the market for substantive justice and reflect a high-level flexibility of arbitration. Under the new rules, the parties may, as agreed, submit a case for which an arbitral tribunal has rendered an award to SCIA for re-hearing and rendering of a final award by a new arbitral tribunal. 

Peter Malanczuk also mentioned SCIA’s partnerships with many international organizations such as ICSID, ICC and UNCITRAL. Last year, SCIA was identified by China’s Supreme People’s Court to be included in its “one-stop” diversified international commercial dispute resolution mechanisms. He himself was also engaged as one of the first 32 expert members of the China’s Supreme People’s Court International Commercial Expert Committee. He believed that SCIA’s participation in the Latin America Arbitration Day Seminar would mark another new beginning for the SCIA to engage in more interactions and cooperation with Spain and other countries in Europe and Latin America. He also expected that SCIA would provide dispute resolution services to more parties in these regions. 

In Madrid, the SCIA delegation also attended the 14^th International Conference of the CEA, visited the firm PONS IP and issued the certificates of SCIA panel of arbitrators to José Carlos Erdozain (legal counsel of PONS IP) and J. Félix de Luis (managing partner of the law firm LEGAL 21 ABOGADOS), at the same time meeting and exchanging views with other legal professionals. 

The SCIA delegation also paid a visit to the Madrid Bar Association and held talks with its Chairman José María Alonso Puig, Vice Chairman Begoña Castro Jover and representatives from HKIAC, KCAB, SIAC and CAA. In addition, the SCIA delegation met with the heads of three arbitration institutions in the process of merging. The Spanish Arbitration Court (Corte Española de Arbitraje), the Madrid Arbitration Court (Corte de Arbitraje de Madrid) and the Madrid Civil and Commercial Arbitration Court (Corte Civil y Mercantil de Arbitraje, CIMA) are proceeding with their merger. After the merger, the new institution - Madrid International Arbitration Center (MIAC) - will accept all international cases. The SCIA delegation discussed with them on the development of arbitration in both China and Spain, and shared SCIA’s own experience of completing the first merger of arbitration institutions in China. SCIA envisioned a new mechanism for China-Spain cooperation on international arbitration jointly developed with the above three arbitration institutions and reached consensus on further cooperation with them.