WHY ARBITRATION

There are usually four alternatives in resolving international commercial disputes,i.e.negotiation,conciliation,arbitration and litigation.Among these,arbitration has an entrenched position as the most favored means for the resolution of disputes arising from international economic and trade transactions.

Arbitration has a number of inherent advantages over the other three alternatives:

I.Convenience

No any other proceedings including appeal or retrial shall be applied once the arbitral award is rendered.The date on which the arbritral award is made is the date on which the arbitral award comes into legal effect.Arbitration provides a flexible method,which can give a simple,quick,efficient and final solution to a dispute.

II.Full autonomy

"Full autonomy"is respected as the core of arbitration.Arbitration grants the parties complete autonomy in selection of the arbitration institute,arbitrators,arbitration venue,arbitration language,arbitration rules and the applicable law,etc.

III.Enforceabililty

The 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards(abbr."the New York Convention")lays down a convenient and generally accepted framework for the recognition and the enforcement of international arbitral awards.Under the Convention,the arbitral awards made in any signatory countries can be recognized and enforced through the competent courts of 145 countries and regions.

IV.Privacy

The arbitration case shall not be heard in open session.Without the consent of the claimant and the respondent,no third party can attend arbitration hearing and no information relating to the case can be disclosed to the mass press.The principle of confidentiality is highly respected by the arbitral tribunal and the arbitration commission.

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