(23 January, 2008, Beijing)

Mr. Yu Jianlong
Vice Chairman of CIETAC

Review of the Work of the 16th Committee

Over the past three years, China's economy maintained a steady and rapid growth, and reform and opening up were further deepened. China's economic development has granted more opportunities for CIETAC. Since the establishment of the 16th Committee in 2005, fellow Advisors, Committee Members and Staffs have attainted significant achievements in case handling, business development, research etc. Specifically, our achievements can be shown in the following aspects:

1. Acceptance and Conclusion of Cases

The amount of cases accepted and concluded during the term of the 16th Committee were respectively 3078 and 2976, an increase of 37% and 42% over that of the 15th Committee. The amount in dispute exceeded 32.7 billion Yuan with an increase of 22%. Disputing parties came from 35 different countries and regions and the arbitral awards have been widely recognized and enforced in the world.

Cases Accepted and Concluded by CIETAC in 2002-2007

Cases Accepted in 2005-2007

Year	Beijing	Shanghai	South China	Total
2005	462	304	213	979
2006	495	306	180	981
2007	630	332	156	1,118

Cases Concluded in 2005-2007

Year	Beijing	Shanghai	South China	Total
2005	448	301	209	958
2006	481	315	171	967
2007	582	292	177	1,051

Domestic and Foreign-related Cases Accepted by CIETAC in 2002-2007

Amount in Dispute in 2002-2007 (RMB 100 million)

CIETAC cases have the following characteristics:

(1)The numbers of domestic cases continued to grow. The number of domestic cases exceeded foreign-related ones for the first time in 2005, and maintained the same in 2006 and 2007. In comparison with 2002~2004, foreign-related case accepted by CIETAC dropped by 3.9%, while domestic cases increased by 99.79%. Among domestic cases, cases involving overseas investment still took a large part.

(2)Categories of cases were further diversified. Besides dispute arising from sales of goods, joint venture, cooperation, processing and compensation trade, CIETAC also handled new types of disputes, including those arising from equity transfer, housing tenancy or sales, construction and building decoration project, contracting engineering project, estates construction and development, contract for commission, concession, insurance agreement, trademark license, takeovers and mergers. Among all, disputes arising from sales of goods ranked first.

(3)Summary procedure was frequently applied. Taking CIETAC headquarters for example, summary procedure was applied in 464 cases in the last three years, taking up 29.24% of the total cases accepted in that period.

(4)Facts, issues and procedures of cases became more complex.

(5)Cases involving foreign parties, including parties from Hong Kong SAR, Marco SAR and Taiwan Region increased significantly.

(6)The DNDRC of CIETAC accepted 800 cases, including 644 on CN Domain Name, 58 on General Network Address, 137 on general Top Level Domain (gTLDs), 9 on Short Message Service Network Address and 8 on Wireless Network Address; 658 of these disputes have been concluded, including 489 on CN Domain Name, 43 on General Network Address, 112 on general Top Level Domain (gTLDs), 7 on Short Message Service Network Address and 7 on Wireless Network Address. In the meanwhile, domain name disputes became more complex. Some of them involved complicated legal problems, such as the interpretation of Resolution of Domain Name Dispute.

2. Revising the Rules to Comply With the International Arbitration Practice

CIETAC adopted its Arbitration Rules (7th Edition) on 1 May 2005 based on wide consultation and research. The new Arbitration Rules, by learning from advanced international experience, provides more choices and flexibilities to parties. Under this Rules, Parties are able to agree on the conduct of hearing, the appointment of arbitrators (even if the arbitrator is not listed in the Panel of Arbitrators), the nationality of arbitrators, the place of arbitration, the place of oral hearing, and the language of arbitration. The new Rules improved the provisions of disclosure and challenge of arbitrators, and ensured that the arbitrators remain independent and treat parties equally.

Meanwhile, the new Rules puts an emphasis on the efficiency of the arbitral proceedings. Methods include issuing procedural directions, lists of questions and terms of reference, holding pre-hearing meetings and preliminary hearings, etc. It also helps to enhance the transparency of arbitral proceedings and improve the quality of arbitral award.

3. Effectively Promoting Self-improvement

Over the past three years, CIETAC has strengthened the training, supervision and management of its arbitrators. It hosted around 40 symposiums and trained over 2,500 arbitrators in total.

In the meanwhile, CIETAC case-handling staffs worked hard to better exercise their professional functions and provide better services. It trained its secretaries and held seminars with staffs of Shanghai and South-China sub-commissions to share experiences from each other.

4. Expanding Publicity, and Enhancing the Popularity of CIETAC

By hosting and participating in seminars, setting up booths in exhibitions, and making presentations, CIETAC spread the arbitration knowledge and the advantages of arbitration to enterprises from home and abroad.

To commemorate the 50th anniversary of its establishment, CIETAC sponsored a series of activities themed "Reviewing the Glorious History, Displaying Significant Achievements, Highlighting Arbitration Characteristics and Looking Forward to the Bright Future" to further expand the influence of CIETAC in domestic and international commercial sectors.

In the meanwhile, CIETAC further developed the cooperation and friendship with the Arbitration Association of Taiwan, China. The two institutions co-hosted the Symposium of Economic and Trade Arbitration of both sides Across the Strait, and joined hands in exploring such issues as mutually accepting arbitrators and model arbitration clauses, etc. In 2007, the two institutions executed the Memorandum of Co-operation and Memorandum of Co-operation on Training of Arbitrators and Mediators, and published the Collection for Symposiums of Economic and Trade Arbitration of Both Sides Across the Strait.

CIETAC also organized the 5th CIETAC International Commercial Arbitration Moot in Beijing, and sponsored the champion team to participate in the 15th Willem C. Vis International Commercial Arbitration Moot in Vienna and Hong Kong SAR in 2008. Besides, CIETAC Arbitration Rules is to be adopted in the Moot from 2011.

To conclude on this point, CIETAC actively attended international arbitration conferences, organized symposiums, and visited arbitration institutions and law firms to share experiences, promote China's arbitration, introduce CIETAC arbitration rules, clarify misunderstandings and prejudices, and enhance cooperation with international arbitration institutions. Positive outcomes have been received by far.

5. Strengthening Researches on Arbitration

In the past three years, CIETAC further enhanced researches on arbitration theory and practice. It published more than 18 issues of the Journal of Arbitration and Law, and China Arbitration Law Research Association, the sub-association under CIETAC, published China Arbitration and Justice on a regular basis. To help revise the Arbitration Law, CIETAC established a special research group to work on the amendment and to provide advices for competent departments. In accordance with the request by relevant authorities, CIETAC submitted "Legislation Proposal on the Offence of Perversion of Justice on Arbitration", "The Opinion on Whether to Allow Parties to Appeal After the People's Court's Ruling on Dismissing His/Her/Its Application for Setting Aside, Non-Enforcement and Refusing to Enforce the Arbitration Award", "Amendment Of Arbitration Law and Draft Rules of Arbitration Association". Under the request of the Ministry of Commence of PRC, CIETAC provided its suggestions of cooperation between CIETAC and Korea International Trade Arbitration Committee to the 2nd China and Korea Economic and Trading Mixed Committee Conference.

DNDRC strengthened its research on domain name disputes, online dispute resolution, and online arbitration. A Collection of Decisions of DNDRC was published.

In order to learn the enforcement information of arbitral awards, CIETAC issued questionnaire to parties after conclusion of cases. The feedbacks received from parties were quite good, especially on the procedural management, services, and the justice of awards.

Major Tasks for 17th Committee

The 17th Committee of CIETAC shall stick to the following working principles:

- Focusing on dispute handling, maintaining its recognition and popularity in traditional sectors, and in the meanwhile exploring into emerging economic fields;

- Focusing on arbitration as a dispute resolution mechanism, and at the same time developing other ADR mechanisms to settle disputes;

- Building up a high level and professional team of arbitrators, and sparing no efforts to achieve and maintain independent and justice;

- Strengthening case administration and supervision, and strengthening the sense of responsibility and self-discipline of case-handling personnel;

- Putting more emphasis on promotion, and expanding international exchange and cooperation.