No more debate: Hong Kong arbitration awards are enforceable nationwide

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The Supreme People’s Court has confirmed that arbitration awards made in Hong Kong, whether ad-hoc or by foreign arbitral institutions like the International Chamber of Commerce (ICC), are enforceable in China. In a notification made on 30 December 2009, the court appears to confirm that awards made in Hong Kong should be treated differently from those in the rest of the country.

Peter Yuen, a partner at Freshfields Bruckhaus Deringer in Hong Kong, told China Business Law Journal that the notification would “remove any doubts about ad-hoc and ICC awards made in Hong Kong being enforceable in China”.

The roots of these doubts lie in the PRC Arbitration Law, which requires all arbitration conducted in China to be administered by a recognized arbitration institution. Awards arrived at in China through ad-hoc arbitration are generally considered invalid.

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