Publish time: Tue Mar 20 12:08:32 CST 2018
2017 was a challenging and industrious year for the Beijing Arbitration Commission/Beijing International Arbitration Center (hereinafter referred to as the “BAC/BIAC”). The 7th Committee was elected, and it inaugurated profound developments in the BAC/BIAC’s office in 2017. The developments include the implementation and evaluation of all work planned for the year, the refinement of the performance management of arbitrators and staff, and thus the streamlining of the BAC/BIAC’s daily operations. In 2017, the caseload of the BAC/BIAC experienced a steady growth, the values of cases remained high, and knowledge management and brand management achieved initial success. As a result of these developments and performance, the BAC/BIAC’s work in 2017 could be said to be stable, focused, and well done. In 2017, the BAC/BIAC also responded to the relevant initiatives of the Communist Party of China (hereinafter referred to as the “CPC”) and strengthened its teambuilding activities, wherein the staff was trained for professionalism as a unity. Consequently, better service in case management is widely recognized.
Generally speaking, in 2017, all the arbitrators and the commission’s staff worked hard together, as team, to make all of the BAC/BIAC’s work result in abundant achievements. The specific report of the work of 2017 follows here below:
I. Smooth Completion of Committee Member Elections
On the basis of the Arbitration Law of the People’s Republic of China and Notification on Further Implementation of Change of Arbitration Commission Members of Legislative Affairs Office of the State Council of the People's Republic of China (Guo Fa [2017] No. 18), the BAC/BIAC formally initiated the work related to committee member elections, and finished it on September 28, 2017.
In accordance with international and domestic development trends, the BAC/BIAC presses for positioning of high-end brands in China’s commercial arbitration, and strives to expand the development space for international commercial dispute resolution in high-end areas, striving to realize the goal of “building a world-class arbitration institution”. The newly formed committee adheres to the effective practice, has an international vision, modern governance, and professional management of the BAC/BIAC’s practice, and is of great significance to the continued development of the BAC/BIAC.
The 7th Committee agreed to establish a new Remuneration and Performance Examination and Evaluation Committee on September 22, 2017. It completed the establishment of the new Arbitrator’s Discipline Inspection and Supervision Committee on December 11, 2017.
II. Relevant Information on the Handling of Cases
(I) Handling of Arbitration Cases
1. The Number and Amount in Dispute of Cases
In 2017, the number of accepted cases of the BAC/BIAC set a new record and the amounts in dispute remained high. According to the statistics, the BAC/BIAC accepted a total of 3,550 cases, an increase of 538 from last year. The amount in dispute of cases in the whole year was RMB 44.811 billion, a decrease of RMB 1.779 billion from last year. International commercial arbitration cases totaled 77, accounting for 2.17% of all accepted cases, and the amount in dispute was RMB 2.896 billion.
There were 2,030 cases with amount in dispute less than RMB 1 million, accounting for 57.19% of all cases accepted in 2017, an increase of 340 from last year. The amount in dispute totaled RMB 630 million, accounting for 1.46% of the amount in dispute of registered cases, an increase of RMB 100 million from last year.
There were 1,101 cases whose amount in dispute was between RMB 1 million and RMB 10 million, accounting for 31.01% of all registered cases, an increase of 133 from last year, totaling RMB 3.56 billion, accounting for 8.04% of the amount in dispute of registered cases, an increase of RMB 420 million from last year.
There were 325 cases whose amount in dispute was between RMB 10 million and RMB 100 million, accounting for 9.15% of all registered cases, an increase of 46 from last year, totaling RMB 10.34 billion, accounting for 23.94% of the amount in dispute of registered cases, an increase of RMB 1.98 billion from last year.
There were 94 cases whose amount in dispute was above RMB 100 million, accounting for 2.65% of all registered cases, an increase of 19 from last year, totaling RMB 28.66 billion, accounting for 66.36% of the amount in dispute of registered cases, a decrease of RMB 5.18 billion from last year.
2. Types of Cases
In 2017, the BAC/BIAC performed a statistical analysis of the accepted cases, which is set forth below:
(1) There were 842 sales contract disputes accepted, accounting for 23.72% of total cases, with the amount in dispute of registered cases at RMB 5.65 billion, accounting for 13.08% of the amount in dispute of total cases;
(2) There were 118 agency contract disputes, accounting for 3.32% of total cases, with the amount in dispute of registered cases at RMB 449 million, accounting for 1.04% of the amount in dispute of total cases;
(3) There were 376 construction contract disputes, accounting for 10.59% of total cases, with the amount in dispute of registered cases at RMB 6.486 billion, accounting for 15.01% of the amount in dispute of total cases;
(4) There were 369 investment contract disputes, accounting for 10.39% of total cases, with the amount in dispute of registered cases at RMB 16.516 billion, accounting for 38.23% of the amount in dispute of total cases;
(5) There were 488 financial contract disputes, accounting for 13.75% of total cases, with the amount in dispute of registered cases at RMB 2.77 billion, accounting for 6.41% of the amount in dispute of total cases;
(6) There were 456 loan contract disputes, accounting for 12.85% of total cases, with the amount in dispute of registered cases at RMB 7.557 billion, accounting for 17.49% of the amount in dispute of total cases;
(7) There were 28 guarantee contract disputes, accounting for 0.79% of total cases, with the amount in dispute of registered cases at RMB 560 million, accounting for 1.3% of the amount in dispute of total cases;
(8) There were 183 leasing contract disputes, accounting for 5.15% of total cases, with the amount in dispute of registered cases at RMB 1.322 billion, accounting for 3.06% of the amount in dispute of total cases;
(9) There were 344 service contract disputes, accounting for 9.69% of total cases, with the amount in dispute of registered cases at RMB 744 million, accounting for 1.72% of the amount in dispute of total cases;
(10) There were 275 intellectual property contract disputes, accounting for 7.75% of total cases, with the amount in dispute of registered cases at RMB 876 million, accounting for 2.03% of the amount in dispute of total cases;
(11) There were 15 transportation contract disputes, accounting for 0.42% of total cases, with the amount in dispute of registered cases at RMB 15 million, accounting for 0.04% of the amount in dispute of total cases;
(12) There were 32 hired work contract disputes, accounting for 0.9% of total cases, with the amount in dispute of registered cases at RMB 51 million, accounting for 0.12% of the amount in dispute of total cases;
(13) There were 24 other types of contracts, accounting for 0.68% of total cases, with the amount in dispute of registered cases RMB 202 million, accounting for 0.47% of the amount in dispute of total cases.
Finance related cases (including investment, loans, and guarantees) witnessed a noticeable growth, increasing by 259 over last year, with a growth rate of 23.94%. This indicates a bigger and bigger role of the BAC/BIAC in the field of commercial affairs as a commercial arbitration institution.
3. The number of international commercial arbitration cases remained stable. However, the number of parties from other cities in domestic cases has steadily increased.
The number of international commercial arbitration cases accepted in 2017 increased by 8 compared with 2016. In domestic cases, there were 1,516 cases in which a party was from outside Beijing, accounting for 41.92% of domestic cases; there were 568 cases in which the parties were both non-local, an increase of 126 compared with 2016 and accounting for 16.4% of domestic cases.
4. The average time to conclude a case, the rate of the concluded cases, and the conciliation rate of arbitration cases in 2017 stayed at a high level.
In 2017, concluded cases totaled 3,520, an increase of 603 in comparison with 2016 and giving a growth rate of 20.67%. The average time for concluding a case (i.e., the period from the composition of the arbitral tribunal to the case’s conclusion) is 91.53 days. The average time for concluding a case of international commercial arbitration is 133.26 days. Among concluded cases, there were 2,170 cases concluded by awards, accounting for 61.65% of all the concluded cases; 527 cases concluded by mediation settlement, accounting for 13.18% of all concluded cases; and 823 cases whose application was withdrawn by the party concerned, accounting for 20.58% of all concluded cases (including 479 cases withdrawn without an arbitral tribunal having been composed; i.e., 86.39% cases entered arbitral tribunal formal procedures).
5. Judicial Supervision
(1) Judicial Supervision
In 2017, 1 case was set aside by a court and 5 cases were unenforced by courts. Clarification and objection letters of most of the cases were sent to relevant courts and the remaining ones have been provided with drafted texts.
(2) The Supreme People’s Court Ruled an Arbitration Clause of the BAC/BIAC to Be Valid
On November 20, 2015, Anyang Intermediate People’s Court, Henan, People’s Republic of China, ruled a BAC/BIAC arbitration clause invalid in the (2015) An Zhong Min Yi Chu Zi No. 97 ruling. The Supreme People’s Court made the (2016) Zui Gao Fa Jian Zi No. 106 ruling on March 13, 2017: the Civil and Administrative Judgment Adjudication Committee of the Supreme People’s Court judged through discussion that the above ruling of the Anyang Intermediate People’s Court was wrong and should be reviewed. It is understood that this was the first time a civil ruling was made by the Supreme People’s Court on the basis of Paragraph 2 of Article 198 of the Civil Procedure Law of the People’s Republic of China.
(II) Arbitrator Appointment and Nomination
Arbitrator appointment is not only related to the handling of cases but is also a key link for the arbitration institution to produce maximum social effect and promote arbitration by assessing the background of the cases. While assuring cases can be treated independently, fairly, and effectively, it also involves the realization of multi-dimensional values, including the realization of such social values as cultivation of internal and external talents, endeavoring to create arbitration-friendly atmosphere in the industry, expansion in international markets (designation of foreign arbitrator), studying the practices of excellent peers, promoting sexual equality, diversity, etc. Some results have already been achieved through the BAC/BIAC’s reasonable practice in systematic arrangement of the appointments.
In 2017, there were 363 arbitrators engaged in handling cases, representing a total of 5,506 arbitrator appointments. The BAC/BIAC made a total of 4,122 appointments, an increase of 492 compared with 2016, including 1,263 presiding arbitrator appointments, 1,817 sole arbitrator appointments, 342 claimant’s arbitrator appointments, and 700 respondent’s arbitrator appointments.
Among the 1,280 ordinary procedure cases (including 50 international arbitration proceedings), the claimant selected the arbitrator in 833 cases (65.08%) and the respondent selected the arbitrator in 530 cases (41.41%). The increase in the percentage of arbitrators selected by the parties reflects the parties’ general recognition of the impartiality, professionalism, and service of BAC/BIAC arbitrators.
III. Promotion, Research, Training, and Other Development Work
In 2017, external networking such as promotion was more organized, external cooperation was more extensive, and the outcome was more productive. Through continuous promotion effectiveness, the BAC/BIAC’s international reputation also increased continuously.
(I) Branding Oriented Research Project Continues to Unfold
On the one side, regular research products maintain high quality. Four quarterly issues of the Beijing Arbitration Quarterly were completed, totaling 594,000 words, encompassing 35 essays and 41 authors, including 10 arbitrators of the BAC/BIAC. The BAC/BIAC Research Fund received 16 applications, and at the same time accepted 10 projects and newly granted and subsidized 10 projects, which passed review in 2016. As of the end of 2017, the BAC/BIAC Research Fund had altogether subsidized research on 50 tasks. The Chinese and English versions of the Annual Review and Preview on Commercial Dispute Resolution in China (2017) were published as planned (the Chinese version was published by China Legal Publishing House and 2,000 volumes subscribed by the BAC/BIAC were fully distributed; the English version was published by Wolters Kluwer). This is the 5th year of the Annual Review project; both Chinese and English versions were sold online at home and abroad. The 5th BAC/BIAC Cup National College Commercial Arbitration Awarded Essay Contest was held: the influence of the essay contest in leading law schools was increasingly expanded; the number of participating in the activity and the essays increase year by year. This achieves the BAC/BIAC’s purpose of encouraging young students to focus on arbitration, to research arbitration, and to cultivate reserve forces for the future development of arbitration. In addition, the BAC/BIAC’s “New Exploration to Dispute Resolution” library and “New Vision to Dispute Resolution” collected translations series were also launched as per regular work.
On the other side, the new research products of the selected awards series was well praised by the industry, and became a highlight of the year. On the basis of accumulated experience from long-time arbitration practice, the BAC/BIAC stood by the requirements of the three indicators of form, reasoning, and judgement, continuously screened excellent arbitral awards which are representative in the professional fields, adopted the model of “abstraction + analysis”, and finalized a series of the selected awards of Chinese commercial arbitration cases with a basis in demonstration and theoretical research value. After elaborate planning and organization for nearly 3 years, Intensive Reading of Chinese Arbitration Library • Equity Transfer Cases was proofread, published, and sold in 2017. In the whole book, there were 570,000 words, including 36 cases and refined comments. This book was the first intensive reading of commercial arbitration cases in China, has been widely praised in the industry, and was out of stock 5 months after it was launched, which fully displays the BAC/BIAC’s professionalism and high quality arbitration services.
At the same time, the BAC/BIAC also elaborately selected 30 excellent arbitral awards in the fields of construction project, agency & commission, equity transfer, franchising, leasing, insurance, contracted operation, etc. On the basis of writing style and quality of the awards, it created the Appreciation and Analysis of Chinese Arbitration Library • Excellent Arbitral Award, which was well praised in the industry.
(II) Training Work More Systematic and Diversified
First, training work is more systematic and standardized. Theoretical and practical training activities are reduced but more standardized, and the effects are positive. In 2017, the BAC/BIAC’s internal training works includes seminars, professional groups, secretary training, study discussions; external training works includes workshops and training for company legal affairs, lawyers, and students etc.; got a total of 200 courses or lectures, such as the lecture given in SASAC law governance lecture hall, the lecture of “legal negotiation” for the master of law students of China Foreign Affairs University. In 2017, it organized staff to fully sort out about 137 BAC/BIAC staff training courseworks and teaching plans, which preliminarily formed a stable database and provided normative reference for training work. Though in the plan of workload in 2017, the quantity would be slightly decreased than that in last year, training’s standardization and systematicity were both strengthened, while training content was deepened. On that basis, it will further consider planning the output of more valuable knowledge products and the summary of training achievements.
Second, the model of training is more diversified. Under the background of widespread internet technology and information, with increased recognition of arbitration in all walks of life, arbitration training demand is also diversified. In 2017, the BAC/BIAC took the preliminary step to set up such online training, which attracted attention from legal insiders. The BAC/BIAC will further evaluate, analyze demand for further online training specific to the arbitrators, combine it with such activities as its traditional training activities or arbitrator seminars, etc., explore an online and offline integrated training mechanism, and distill intellectual products at different levels.
(III) External Promotion and Collaboration More Professional, Widespread, and Effective
First, external promotion was more professional. The BAC/BIAC’s professionalism is always the first and foremost in all external works, the outcome of these works turns to be fruitful. Each dispatched delegation acquired relevant speaking opportunity and thus contributed ideas and thoughts which based on adequate research and preparation to the field of international dispute resolution.
Second, external collaboration was more widespread. We not only had exchanges with arbitration institutions, but also with international organizations, governments, legal associations, academic organizations, etc., to make international community fully familiar with the BAC/BIAC in all aspects, to improve the BAC/BIAC’s reputation from multiple angles.
Third, the above-mentioned external works were more effective. Many works had the features of continuity and mutual exchange. The external works in 2017 fully brought this out: on the one side, we utilized resources obtained from external works well, which meant a build-up of a network and resources through the speakers of the BAC/BIAC annual summit on dispute resolution in China in the first half of the year, and many persons visiting the BAC/BIAC were also attracted by various BAC/BIAC’s activities; on the other side, the purposes of external works were targeted and their results were more direct.
Fourth, external works considerably improved the BAC/BIAC’s reputation. In 2017, with the advance of external works, more and more international organizations agreed to take the initiative to promote arbitration development with the BAC/BIAC together, which fully confirms the fruitful outcomes of external works.
Among the highlights in the promotion:
1. Establishment of China-Africa Joint Arbitration Center Beijing
From January 12 to 22, BAC/BIAC delegation followed the China Law Society to visit such countries as Benin, Cameroon, Kenya, etc. Later, the BAC/BIAC established the China-Africa Joint Arbitration Center Beijing and concluded cooperation agreements with South Africa’s Johannesburg Center and Kenya’s Nairobi Center, providing international arbitration services to China-Africa parties.
2. Participation in UNCITRAL Sessions
On February 6-10, the 66th session of Working Group II (dispute resolution) of the United Nations Commission on International Trade Law (hereinafter referred to as “UNCITRAL”) was held in the UN Headquarters in New York, USA. Invited as an observer, the BAC/BIAC constituted a delegation to participate in that session. The BAC/BIAC delegation, acting as an observer for the first time, carefully studied the rules of procedure of the UNCITRAL Working Group, and specifically opined on the issues of the scope of enforceable settlement agreements and the impact of the conduct of conciliators on enforcement procedures. On the whole, the observation made by the BAC/BIAC delegation was basically integrated into the discussion of the working group. As an observer, the BAC/BIAC made a timely contribution of its practical experience and observations on the development of dispute resolution in China.
On July 4-6, the 50th Anniversary of the United Nations Commission on International Trade Law was held in the Vienna International Center, Austria. The BAC/BIAC attended the anniversary as an UNCITRAL observer delegation and introduced the use of mediation mechanisms in arbitration in China.
On October 1-8, again invited by the United Nations Commission on International Trade Law, the BAC/BIAC attended the 67th session of Working Group II (dispute resolution) as an observer. The BAC/BIAC Delegation attended the session and continued to provide observation on the document text of transnational enforcement problems of settlement agreements and expounded on practical experience from China.
From 27th November to 1st December, the 34th session of Working Group III of the United Nations Commission on International Trade Law (reform of dispute resolution between investor and countries) was held at the Vienna International Center, Austria. The BAC/BIAC Delegation attended that session as an observer and shared some exploration of rules and practical experiences of China arbitration institutions in reducing the time and expense of procedures, for reference in negotiations over specific problems by government delegations of the countries.
3. Initiation of “the Belt and Road” Arbitration Action Plan
On May 9, “Signing Ceremony of Belt and Road Arbitration Initiative & Legal Issues on Investment Climate and Dispute Resolution in Malaysia and Egypt” was held at the BAC/BIAC. Mr. Sundra Rajoo, president of the Kuala Lumpur Regional Centre for Arbitration, Mr. Ismail Selim, president of the Cairo Regional Centre for International Commercial Arbitration, and Secretary General Mr. Lin Zhiwei jointly announced the formal initiation of “the Belt and Road” arbitration action plan on behalf of three international arbitration institutions.
On December 12, the Cairo road show of “the Belt and Road” arbitration action plan and the economic law view and dispute settlement seminar were successfully held in Cairo, the capital of Egypt. The BAC/BIAC was invited to attend the road show by the Cairo Regional Centre for International Commercial Arbitration. The activity was a measure for the implementation of specific work launched by the initiators after the founding ceremony of “the Belt and Road” arbitration action plan in May.
New Developments and Innovation in 2017 Annual Summit
(1) Held in Three Places for the First Time
On June 19, 21, and 23, supported by its international partners, the BAC/BIAC successfully held the “2017 Annual Summit on Commercial Dispute Resolution in China” in London, Vienna, and Zurich. In the past five years, the BAC/BIAC successfully held summits in London, Paris, Cologne, Frankfurt, The Hague, etc. The cooperating organizations included such internationally famous colleges and arbitration institutions as the Centre for Commercial Law Studies, Queen Mary University of London, the International Court of Arbitration of the International Chamber of Commerce, German Arbitration Institute, Permanent Court of Arbitration of The Hague, etc. and achieved fruitful exchanges.
The “2017 Annual Summit on Commercial Dispute Resolution in China”, by such methods as the sorting out of history, planning ahead of schedules, website construction, process standardization, etc., further displayed the BAC/BIAC’s capabilities in hosting first-rate international meetings. The summit achieved new heights in the number of meeting participants and distinguished guests with international influence attending the meeting and giving speeches, e.g., His Excellency Nabil Elaraby, former Secretary General of the League of Arab States, Sir William Blair, Judge in Charge of the Commercial Court, High Court of Justice of England and Wales, Mr. Jose Angelo Estrella Faria, Secretary General of the International Institute for the Unification of Private Laws, Mr. Renaud Sorieul, Secretary General of the United Nations Commission on International Trade Law, etc.
The Annual Review and Preview on Commercial Dispute Resolution in China has gradually become an important reference material for the international community to know about development of dispute resolution in China. Cooperation with the Swiss Arbitration Association in running a summit for the first time is the BAC/BIAC’s important attempt for further promoting exchange platforms for China commercial dispute resolution and deepening exchange and cooperation with arbitration professionals in Switzerland.
(2) Specialized Topics in Domestic Summits
The Annual Review and Preview on Commercial Dispute Resolution in China (2017) annual summit was held in the BAC/BIAC International Conference Hall. In addition, the BAC/BIAC also organized a series of sub-summits according to the specification of the Annual Review, which includes financial and investment, construction, real estate, intellectual property, entertainment, etc., attracting more than 1,000 attendees in total. After 5 years of hardworking, the “Annual Review and Preview” series has become an important material for readers at home and abroad to understand commercial dispute resolution in China; the 2017 “Annual Review and Preview” showed its innovation by dint of report compilation, release mode, etc., serving as a reference for the dispute resolution industry.
(3) Build Internet Promotion Platform
BAC/BIAC built up an official website for the Annual Summit. A historical database of this work has been formed, since we collected and collated all the information about the Annual Summit for the past 5 years. Online registration and other functions of the website better promoted and supported the organization of the event.
5. Accelerated Developments in Cooperation with Industrial Entities
(1) Establishment of PPP Research Center
On April 28, the “BAC/BIAC PPP Dispute Research Center Establishment Meeting” was held in the BAC/BIAC International Meeting Hall. Experts from governmental organizations, courts, large enterprises, famous law firms, and colleges gathered together and exchanged ideas over such issues as the purpose and significance of the establishment of the Research Center, its work content and research direction, the transformation thereof into working mechanisms, etc.
(2) Cooperation Related to Intellectual Property Field
On June 2-4, the BAC supported the hosting, by the China Intellectual Property Rights Forum Organizing Committee and the Beijing Power-nation Intellectual Property Institute, of the “2017 China Intellectual Property Forum - Best Practices for Quality and Value” in the China National Convention Center. Mr. Lin Zhiwei, Secretary General of the BAC/BIAC, was invited to give a speech.
In the afternoon of June 4, the BAC/BIAC, based on the “Intellectual Property Report” of the 2017 Annual Review and Preview, held a seminar on diversified dispute resolution mechanisms for intellectual property disputes. Dr. Chen Fuyong, Deputy Secretary General of the BAC/BIAC, hosted the seminar and pointed out that intellectual property dispute resolution in China is developing toward a more professional and complicated direction, which will continue in the future.
In the afternoon on October 19, the BAC/BIAC and China Intellectual Property Law Association jointly held the “Cooperation Signing Ceremony of the Beijing Arbitration Commission and the China Intellectual Property Law Association and Intellectual Property Arbitration Hot Issue Seminar”. The BAC/BIAC took this signing as a chance to further promote the use of such efficient and professional diversified dispute resolution methods in the field of intellectual property, to help implement strategies for a strong intellectual property nation.
(3) Launching of Investment Arbitration Meeting
In 2017, the BAC/BIAC invested resources on the research of investment arbitration. Three seminars were held and attracting approximately 300 professionals. The invited practical experts gave in-depth analyses and exchange ideas of the possibility of the development of the investment arbitration in China, and thus enriched the BAC/BIAC’s knowledge reserve in the field.
(4) Signing with China Securities Investor Service Center
The BAC/BIAC reinforced expansion in the field of securities and formally signed the Arbitration Mediation Connection Cooperation Framework Agreement between China Securities Investor Services Center and the Beijing Arbitration Commission to jointly launch arbitration mediation cooperation, mutually provide professional assistance, reinforce capacity-building of both sides’ teams, and jointly launch promotion and guidance on diversified dispute resolution of future securities disputes.
6. International Commercial Arbitration Pre-Moot Court Competition Beijing Invitational
The BAC/BIAC, together with Chinese Initiative on International Law, ICC YAF, and China Young Arbitration Group, held the International Commercial Arbitration Pre-Moot Court Competition Beijing Invitational: 8 competing teams from 5 colleges and universities participated in the contest, with 122 participants in total, which fully displayed its attraction. It demonstrated the BAC/BIAC’s focus on and support of international contests and young talents, and also laid a foundation for further entry into the field of moot competitions and interactions with colleges and universities.
IV. Internal Construction
(I) Refinement of Case Management
For the part with imperfection in the current case management or the gap needs to be filled in the management, efforts were made to the relevant perfection and refinement. Measures taken included the following:
(1) Concerning the extreme workload pressure for several senior case managers, the case distribution rules were adjusted accordingly with the growth of junior case managers to reduce the caseload of senior case managers.
(2) Concerning the issue of excessively delay in the scrutinization of the awards, the KPI rules regarding to the scrutinization have been revised. Every unreasonable delay should be reflected truly in this KPI now.
(3) Concerning the issue of delay in the composition of the arbitral tribunal, the KPI rules regarding to the reward or punishment on composition duration have been revised. It now specified that the arbitral tribunal shall be composed within 7 days after the appointment or the nominations have been made.
(4) Concerning the issue of transparency in the internal communication, an issue reflected by some arbitrators, good experience of industrial peers were collected and shared. At the same time, the scrutinization is now encouraged to save the original record of communication in written format. It is also suggested that the email should be included in the appendix of case file, if the case value is high or the dispute is sensitive.
(5) Concerning the issue of untimely remuneration payment, an issue reflected by several arbitrators, the problems, personnel, and service were to be verified, reminded, and improved. According to statistics, the time from award sealing to the submission of a remuneration application is 4.4 days on average, the time from the case manager’s submission to the division chief’s verification is 0.4 day on average, the time from the division chief’s verification to the financial staff’s remuneration receipt of the application is 2.7 days on average, and the time from the financial staff’s receipt to the payment is 4.5 days on average.
(6) Information about the arbitrator’s BAC/BIAC case experience and current caseload were released online, so that the party can get more information when they are selecting suitable arbitrators.
(7) A working group to formulate the BAC/BIAC’s Arbitral Award Scrutinizing Check Box was organized and its use by arbitrators was tracked, those without self-examination on the basis of the check box as required were reminded one by one, and such feedback was given to over 30 arbitrators in total.
(8) On the basis of former provisions on expert consultation, the Provisions of Beijing Arbitration Commission on Expert Consultation for Cases Handling was formulated.
(9) On the basis of the former evaluation form which the case manager is using for assessing arbitrators’ performance, the Parties Feedback Indicators, Arbitrator Feedback Indicators, and Case Manager Feedback Indicators were formulated and set up accordingly in the case management system. A multi-dimensional appraisal on case management course is now available.
(10) An internet-based application system for construction quality authentication and assessment companies was developed, the data was interfaced with the case management system, data exchange of intranet and Internet was completed, which provided a powerful guarantee for real-time information sharing of relevant case management.
(II) Party Construction
On June 2, 2017, upon approval from the Legal Affairs Office of the Municipal Government, the General Branch Committee of the CPC Beijing Arbitration Commission Office (hereinafter referred to as the “General Branch Committee”) was established.
After the General Branch Committee was established, a series of rules and mechanisms on Ethical construction were continuously formulated and passed, an effective operation was initiated including collective and scientific decision making procedures in cases of important matters, report and approval procedures regarding to financial, personnel, and case management matters were introduced between the office and the Committee. Meanwhile, leadership and guidance from Legislative Affairs Office Party Group and Organ Party Committee were directly accepted in the Party related matters, series of daily communication, supervision, and coordination mechanisms were formed, such as a quarterly report on important events/matters, all important decisions were submitted to the Legislative Affairs Office Party Group and the Party’s leading role in “direction control, overall situation control, implementation assurance” was fully displayed.
As of the end of 2017, a total of 14 seminars were held, two Party activities were organized, with studies on the theoretical and practical issues of party building, and the content the 19th National Congress of the Communist Party of China was learned.
(III) Implementation of Key Performance Indicator (KPI) and Adjustment of Performance Salary
The BAC/BIAC formally implemented KPI assessment in accordance with the Administrative Measures for Remuneration Performance of Beijing Arbitration Commission Office for the first time. To improve the principle of promotion and upgrading, the assessment measure covers all employees. The managing team was formally assessed for the first time this year; KPI assessment was also applied to the middle level (division chief, principals, senior assistant, and senior manager).
(IV) Establishment of Monthly Financial and IT Report, Reinforcement of the Use of Data Analysis
A detailed financial report was provided to the Secretary General’s meetings. Under the situation of heavy workload and inadequate staff in 2017, the financial department strived to establish a monthly financial report in January 2017, submitting it to the Secretary General in the middle 10 days of each month. In addition to daily data, in the monthly report were also added such important information as refund data on the basis of types of cases withdrawn, arbitrator’s remuneration based on such different calibers as method of resolution, amounts in dispute, business expansion budget execution, assets, funding, abnormal situations, etc.
To meet further demand for big data for business decisions’, the IT Department established a monthly report from January 2017. It needed to use the intranet and Internet platform to gather more widespread and accurate data, and started to analyze and utilize the data. The IT Department added more indicators in case procedures into the internal and external systems, linking data generated in the course of the procedures, while at the same time also considering the convenience of the systems when adding functions for collecting these objective data. In the process of implementation, it preliminarily combined these gathered data in the form of a monthly IT report, in which daily information is submitted every month according to actual situations of the work, and information from long-pending cases is summarized once every two months, while complaint cases are reported on a quarterly basis, providing data to support leaders’ decisions and daily management.
(V) Proposal of “Smart Arbitration” Upgrading and Technology Preparation
On March 13, 2017, the senior IT manager organized relevant people to visit Beijing High People’s Court. Mrs. Yu Yan, Deputy Secretary General, positively proposed, under the background of “internet+”, that IT work should reduce pressures of workload for staff by advanced technical methods, such as a centralized outsourcing service and streamline of works other than case management, which would greatly reduce the case manager’s workload and thereof assure improved performance in case management. This idea supported by the committee and the managing team of the BAC/BIAC. On June 13, Madam Wang Hongsong, Vice-Chairperson of the BAC/BIAC, went to the Third Intermediate People’s Court of Beijing and Jiangsu Court for advanced study experience of “Smart Court” with the managing team, which quickened the realization of the “Smart Arbitration” idea. After detailed research and field survey on the combination of business and new technology for 3 months, a preliminary project establishment program was formed. On June 30, a 6-person special working group composed of 3 Secretary Generals, 2 case managers and 1 IT employee started to implement the “Smart Arbitration” program, deepened development and utilization of big data, and improved the case registration service hall. It cooperated on a system upgrade, consolidated site service and receptionist’s works, optimized the service processes, and achieved an satisfactory service experience for the Party. This attempt will further improve the BAC/BIAC’s IT capability, upgrade it from a basic frame to intelligent application, and continuously lead the use of technology in the arbitration industry in the coming 5 years. The implementation plan approved by the 7th Commission at its first meeting. At present, the bidding and tendering work for a consultation supervisor is already completed. The overall engineering expected to be completed before August 2018.
(VI) The 7th Committee Commence Duties in Arbitrators Panel Updates
2017 was a year for the BAC/BIAC to update its arbitrator list, adding many new arbitrators, including foreign ones. Led by the BAC/BIAC’s senior assistant, and comprehensively assisted by the Administration Office, all work related to the process was smoothly completed.
V. 2018 Goals
The opportunity and challenge are parallel in 2018. First, the caseload is expected to remain high as no signal indicates the disputes will reduce—in 2017, it increased by 18% compared with 2016, and it tends to continuously increase. Second, the competition among institutions is fierce. All arbitration institutions, especially the ones focus on high-end market, both domestic and international ones, attach great importance to the arbitration market in China and try to improve the quality of their dispute resolution services and brand the services. Third, a majority of foreign-involved trade and investment contracts still opt for overseas arbitration institutions. Fourth, there is room for the refinement and improvement of the capacity and quality of BAC/BIAC’s dispute resolution services. The party’s growing need and the committee’s strict requirements on the quality and efficiency of the case management set goals for BAC/BIAC. The case management will be streamlined and tailored. Therefore, we should seize domestic and international development trends, blend into the overall industrial situation, stick to an orientation of a high-end brand of commercial arbitration in China, make all efforts to expand development space in the field of international commercial dispute resolution, and make efforts to realize the goal of the “building an leading international arbitration institution”.
(I) Further Improvement of the Committee’s Governance and Rules Related
We will formulate and implement working mechanisms for serving the Committee, such as a daily information notification mechanism, an important-matter report mechanism, a high-profile case deliberation mechanism, etc., to guarantee the effective communication and governance of the committee. BAC/BIAC also will establish working rules for the Discipline Committee and organize the establishment of a Development Committee.
(II) Keep Improving Standard and Efficiency of the Case Management
We will carefully review the arbitrators’ performance, so that the discontinued example of some arbitrators this year will be a good start to remind arbitrators to standardize their conduct in multiple ways and in multiple occasions. We will strictly implement rules, control key nodes, and thus improve the efficiency of arbitration services. In the second half of last year, on the basis of performance assessment feedback, Mrs. Yu Yan, Deputy Secretary General, and the managing team directly proposed the issue of set hearings during non-working hours. Afterwards, the hearings during non-working hours were reduced from 91 in the first half of the year to 28 in the second half of the year. This effort welcomed by the case managers and the parties, which is a good start of controlling key nodes. In 2018, more efforts should be made in such key nodes from case registration to the composition of the arbitral tribunal, the last hearing to draft award, and to final award, etc.. These key nodes affect efficiency significantly and need to be tackled with.
(III) Improve the Predictability of Rulings and Establish a Expertise Pool
We will fully utilize case data, summarize key points of hearings specific to common case types, launch in-depth discussions, form consensus, and provide references to following case management. We will organize arbitrators who are better evaluated by all sides to summarize their hearing skills, share the experience, and help improve overall arbitrators’ performance.
(IV) Improve Business Development System and Establish Working Process of Promotion, Evaluation, and Other Activities
We will rely on arbitrators more in appropriately expand the areas of promotion. We will explore new promotional methods, address suitable audience accurately, and improve the effectiveness of promotion. We will establish methods for evaluating effect of promotion and make our promotion as fruitful as possible. We will further explore the balance between business development and case management.
(V) Further Development of Smart Arbitration
We will upgrade the case management system and redecorate the reception hall; and thus streamline the case management procedures, level up the IT application and transparency, and improve the user experience for the parties and the arbitrators. We will fully utilize a big data system and improve case management and other service and governance. We will make breakthroughs in online arbitration systems and rules.
(VI) Further Improvement of Human Resources
We will comprehensively sort out workload and working modes, and in combination with competitive market salary level, propose human resource management program suitable for long-term development of the BAC/BIAC.
(VII) Further Reinforcement of Party Related Works and Interfacing with New Supervision Committee
We will further reinforce the work of grassroots Party construction of the BAC/BIAC, improve the employee’s cohesion, further reinforce study on political theories, strictly implement the General Party Branch Meeting System, and keep the report of “San Zhong Yi Da” matters to the General Party Branch, Legislative Affairs Office Party Group, and the Committee, to build the BAC/BIAC General Branch to be a firm stronghold.
Office of Beijing Arbitration Commission/Beijing International Arbitration Center
February 2, 2018