China is paving the way for foreign arbitral institutions to conduct more arbitration in the country. A recent court decision suggests that Chinese courts are taking a different approach to key questions surrounding the nationality of arbitral awards that brings the country more in line with international practices.
On Aug. 6, a Chinese court ruled in Brentwood Industries v. Guangzhou Faanlong Machinery Engineering Co. Ltd. that an arbitral award rendered by the International Chamber of Commerce (ICC) in mainland China was a Chinese award with a foreign element. The decision marked the first time a Chinese court has regarded an arbitral award rendered by a foreign arbitral institution in mainland China as a Chinese award.
