Advantages of Arbitration

As the famous saying goes, “harmony is the most precious, and disputes should be settled”. Arbitration is gradually becoming the preferred way to resolve disputes in modern society. Compared with other dispute resolution methods, arbitration has the following advantages:

Party Autonomy

Arbitration procedures are more flexible than litigation procedures. Parties can choose whether to conduct arbitration and which disputes to submit to arbitration, choose the arbitration institution, arbitration location, applicable laws and rules, choose arbitrators, and how to conduct and terminate arbitration procedures, and choose whether to hold a hearing.

Expert Judgment

Arbitration is a dispute resolution mechanism in which a fair and independent third party mediates to resolve civil and commercial disputes. In the arbitration process, the “third party” who serves as the referee is usually an expert or authoritative person in a certain field, who can adapt to the complexity of the case, high technological content, new legal issues, etc., to ensure the quality and efficiency of the case. 

One-Time Finality

Once the arbitration award is made, it will take legal effect, and it has the same legal enforceability as the court judgment, ensuring the high efficiency and fast pace of modern dispute resolution.

Confidentiality

Unless otherwise agreed by the parties, arbitration cases are not publicly heard. This effectively protects the commercial secrets and business reputation of the parties.

International Enforceability

China is a contracting party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (also known as the New York Convention). Awards made by domestic arbitration institutions can be recognized and enforced by the courts of over 170 contracting states and regions.