International Legal Affairs

  According to past experience, solving trade disputes through friendly negotiation is the most time-saving, labor-saving and cost-saving method. Resolving trade disputes through arbitration or litigation is an impatience after friendly negotiation channels are unsuccessful. In practice, choosing international arbitration has the following benefits. (Please browse the full text)

1. Application of law in international disputes


When arbitration or litigation disputes arise due to international trade, the first thing that needs to be determined is the application of the law. The application of different laws may have completely different legal consequences. When the parties to international trade have not explicitly selected the application of the law or the choice of the application of the law is invalid, the law is generally determined based on the principle of the place of closest connection. In China's judicial practice, the courts generally choose to apply the "CONTRACTS LAW" and "GENERAL PRINCIPLES OF CIVIL LAW" when determining the application of law in international trade disputes. "CONVENTION ON THE LAW APPLICABLE TO CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS" is a convention that Chinese parties to international trade often choose to apply. However, in the practice of arbitration, the arbitration tribunal appears to be more cautious and pay attention to analysis on the application of law, and it also respects the choice of the parties.


2.International trade dispute resolution


According to past experience, resolving trade disputes through friendly negotiation is the most time-saving, labor-saving and cost-saving method. Resolving trade disputes through arbitration or litigation is an impatience after friendly negotiation channels are unsuccessful. In practice, choosing international arbitration has the following benefits: 


(1)The arbitration result is easy for the parties to accept.


(2) The arbitration settlement is generally fair and reasonable, unlike the litigation method that is strictly subject to the rules of evidence and procedural law.


(3) It saves time than litigation.


(4) Cost is lower than litigation. In the handling of international trade disputes, parties in Eastern countries represented by China adopt a more flexible way of handling international trade disputes. Both parties are less willing to resolve international trade disputes through litigation or arbitration. Once they are resolved by litigation or arbitration In trade disputes, it is difficult for both parties to have the opportunity to cooperate again in the future. 


(5) Understanding and grasping the different ideas of different parties to trade disputes in Eastern and Western countries, and adopting more effective and flexible countermeasures in the practice of handling international trade disputes, are of great significance to China's international trade practice.