China’s leading arbitration institution for commercial disputes recently issued new rules that mark China’s first attempt to establish a domestic arbitral institution for international investment disputes. The issuance of these rules comes at the same time as China’s “Belt and Road” initiative, focusing on improving trade infrastructure on land from China to other countries in Asia, securing efficient sea trade routes and establishing a network of free trade zones and cultural exchanges. The new rules are likely to result in the China International Economic and Trade Arbitration Commission (“CIETAC”) becoming the forum of choice for outbound Chinese investors and may lead to China pushing for CIETAC arbitration to be included in bilateral investment treaties, which would impact inbound investors’ dispute resolution options. 

Highlights and implications of the new rules are explored in the full memo.

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