Is China Ready to Recognize and Enforce Investment Arbitral Awards?

Abstract

This article explores whether China is ready to comply with its international obligations to recognize and enforce investment arbitral awards, and if not, what remains to be done. First, for ICSID awards, China has neither enacted any implementing legislation, nor designated courts or authorities are competent at recognizing and enforcing ICSID awards. Second, it is more ambiguous and complicated to seek recognition and enforcement of non-ICSID awards, due to China's commercial reservation to New York Convention. It is uncertain whether the current provisions in national law on the recognition and enforcement of foreign commercial arbitral awards would also apply to the recognition and enforcement of non-ICSID awards. Moreover, statutes on State immunity, the common issue while enforcing both ICSID and non-ICSID awards, are quite insufficient. Finally, beyond satisfying its international obligations, investment arbitral awards issued by Chinese arbitration institutions also face obstacles of recognition and enforcement.