Global | Publication | May 2019
The Longlide decision has no binding force upon other Chinese courts. This will only happen if the SPC issues a binding judicial pronouncement (or ‘interpretation’). Until such time, parties are likely to continue to avoid agreeing PRC-seated proceedings administered by foreign arbitration institutions.
Nevertheless, the decision is important as it marks another cautious step by the SPC to take a more pro-arbitration stance than has previously been seen in China. It reassures many that, in years to come, Chinese courts may allow for the operation of a variety of foreign and domestic arbitration institutions in their jurisdiction, as do the leading arbitration jurisdictions in Asia and worldwide.
James Rogers is a partner and Matthew Townsend is an associate in the Hong Kong office of Norton Rose Fulbright.
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