Meaning
A supervisory procedure through which Chinese courts examine the validity of arbitration agreements and the enforcement of arbitral awards. Under the Civil Procedure Law, the judicial review of arbitration maintains the integrity of the dispute resolution system. Courts are legally restricted from reviewing the substantive findings of fact or the application of law made by the tribunal.
This review instead focuses on procedural compliance, such as whether the parties received proper notice of the proceedings.
Procedural Separation
Distinctions are made between domestic cases and those with international aspects. In the judicial review of arbitration, foreign-related awards are subject to a more lenient standard of review than purely domestic ones. Chinese courts cannot refuse to execute a foreign-related award based on a misapplication of domestic law.
This separation aligns with China’s obligations under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Reporting Mechanism
Decisions to invalidate or refuse enforcement of foreign-related awards must undergo a centralized approval process. When an intermediate court intends to refuse enforcement during the judicial review of arbitration, it must report its finding to the high people’s court. If the high court agrees, the matter must be submitted to the Supreme People’s Court for a final determination.
This reporting mechanism prevents local protectionism from interfering with international commerce. It ensures that no foreign-related award is rejected without the scrutiny of the highest judicial authority in the nation.
Court Intervention
Parties must file specific petitions to trigger this judicial oversight. An application for the judicial review of arbitration must be submitted within six months of receiving the award. The filing of a petition to set aside an award suspends the enforcement proceedings in other courts.
This suspended status protects the assets of the petitioner until the review is resolved.
