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COVID-19 and Dispute Resolution in China: Trends in Arbitration and Litigation

Published online by Cambridge University Press:  20 February 2023

Kai-Shen Huang ,
Enhui Shen ,
Monika Prusinowska ,
Ji Ma  and
Magdalena Łągiewska
Kai-Shen Huang*
Affiliation:
China Institute for Socio-Legal Studies & KoGuan Law School, Shanghai Jiao Tong University, China
Enhui Shen
Affiliation:
University of Oxford, United Kingdom
Monika Prusinowska
Affiliation:
University of Barcelona, Spain
Ji Ma
Affiliation:
Peking University School of Transnational Law, China
Magdalena Łągiewska
Affiliation:
University of Gdańsk, Poland
*
Corresponding author. E-mail: kaishen.huang@sjtu.edu.cn
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Abstract

The COVID-19 pandemic is reshaping the landscape of Chinese dispute resolution. The aim of this article is to outline China's various approaches to such development in times of global pandemic. The article primarily examines the features of online arbitration in China with a special focus on the significance of party autonomy and the authority of the tribunal in handling virtual hearings. This trend prompts the question as to whether virtual hearings and the use of digital technology ensure the protection of data and privacy. Further, the article analyses the impacts of online dispute resolution on litigation and different sets of new rules adopted in China to handle online hearings. It concludes that China successfully addressed most of the raised questions in terms of data and privacy protection, and that the processes through which dispute resolution becomes increasingly digitalised seems to be an irreversible trend that warrants further research into its consequences.

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Type
Article
Information
Asian Journal of Comparative Law , Volume 18 , Special Issue 1: China's Global Capital and the Coronavirus: Views from Comparative Law and Regulation , April 2023 , pp. 81 - 90
Copyright
Copyright © The Author(s), 2023. Published by Cambridge University Press on behalf of the National University of Singapore

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Footnotes

*

Postdoctoral Fellow (Shanghai ‘Super Postdoc’ Fellow), China Institute for Socio-Legal Studies & KoGuan School of Law, Shanghai Jiao Tong University.

**

Research Associate, University of Oxford.

***

Maria Zmabrano Scholar, University of Barcelona.

****

Senior CV Starr Lecturer, Peking University School of Transnational Law.

*****

Assistant Professor, Department of Public International Law, Faculty of Law and Administration, University of Gdańsk.

References

1 See eg, Chen, Benjamin Minhao & Li, Zhiyu, ‘How Will Technology Change the Face of Chinese Justice’ (2020) 34 Columbia Journal of Asian Law 1Google Scholar; Stern, Rachel E et al, ‘Automating Fairness? Artificial Intelligence in the Chinese Courts’ (2021) 59 Columbian Journal of Transnational Law 515Google Scholar.

2 See Wilske, Stephan, ‘The Impact of COVID-19 on International Arbitration—Hiccup or Turning Point?’ (2020) 13 Contemporary Asia Arbitration Journal 7Google Scholar.

3 See eg, Zhu Feng, ‘Impacts of the COVID-19 on China's Electronic Litigation System’ (Association de Droit Suisse-Chine, 8 Oct 2020) <https://cnsla.org/2020/10/impacts-of-the-covid-19-on-chinas-electronic-litigation-system/> accessed 10 Jul 2021.

4 Manuel Torres & Dun Zhang, ‘Impact of COVID-19 on International Arbitration: Chinese Arbitral Institutions Work to Keep Proceedings Running’ (Garrigues, 21 May 2020) <https://www.garrigues.com/en_GB/new/impact-covid-19-international-arbitration-chinese-arbitral-institutions-work-keep-proceedings> accessed 10 Jul 2021; Shanghai International Economic and Trade Arbitration Commission (SHIAC), ‘International Commercial Arbitration in the Time of COVID-19’ (Global Arbitration Review, 7 Jul 2021) <https://globalarbitrationreview.com/review/the-asia-pacific-arbitration-review/2022/article/international-commercial-arbitration-in-the-time-of-covid-19> accessed 10 Jul 2021.

5 See Zheng, George G, ‘China's Grand Design of People's Smart Courts’ (2020) 7 Asian Journal of Law and Society 561CrossRefGoogle Scholar; Cui, Yadong, Artificial Intelligence and Judicial Modernization (Springer 2020)CrossRefGoogle Scholar.

6 Guidelines on Proceeding with Arbitration Actively and Properly during the COVID-19 Pandemic (Trial) [关于新冠肺炎疫情期间积极稳妥推进仲裁程序指引（施行）] (28 Apr 2020). The CIETAC Guidelines were issued together with the CIETAC Guidelines for Virtual Hearings (Trial Version) on the same date.

7 Working Guidelines on Online Hearings of the Beijing Arbitration Commission/Beijing International Arbitration Center (For Trial Implementation) [北京仲裁委员会/北京国际仲裁中心关于网上开庭的工作指引（试行）] (8 May 2020).

8 See CIETAC Guidelines, art 1.1 <http://www.cietac.org/index.php?m=Download&a=show&id=100&l=en> accessed 10 Jul 2021; BAC Guidelines, art 1.2 <https://www.bjac.org.cn/english/news/view?id=3717> accessed 10 Jul 2021.

9 CIETAC Guidelines, art 2.6.

10 BAC Guidelines, art 1.2

11 BAC Guidelines, art 1.3.

12 See eg, Diana Sulamazra Abdul Rahman, ‘The Role of Arbitral Institutions in Cybersecurity and Data Protection in International Arbitration’ (Asian International Arbitration Centre, 24 Nov 2020) <http://arbitrationblog.kluwerarbitration.com/2020/11/24/the-role-of-arbitral-institutions-in-cybersecurity-and-data-protection-in-international-arbitration/> accessed 5 Sep 2021.

13 See Yang Furong, ‘Online Hearings: New Challenges to Chinese Online Arbitration’ (China Business Law Journal, 24 Nov 2020) <https://law.asia/zh-hans/online-hearings-new-challenge-china-arbitration/> accessed 5 Sep 2021.

14 See School of International Arbitration, Queen Mary University of London, ‘2021 Queen Mary International Arbitration Survey: Adapting Arbitration to a Changing World’ <http://www.arbitration.qmul.ac.uk/research/2021-international-arbitration-survey/> accessed 5 Sep 2021.

15 ICCA-IBA, ‘The ICCA-IBA Roadmap to Data Protection in International Arbitration’ (2022) <https://www.arbitration-icca.org/icca-reports-no-7-icca-iba-roadmap-data-protection-international-arbitration> accessed 14 Jan 2023.

16 Data Security Law of the PRC [中华人民共和国数据安全法] (10 Jun 2021), art 2 <http://www.npc.gov.cn/npc/c30834/202106/7c9af12f51334a73b56d7938f99a788a.shtml> accessed 5 Sep 2021.

17 Personal Information Protection Law of the PRC [中华人民共和国个人信息保护法] (20 Aug 2021) <http://www.npc.gov.cn/npc/c30834/202108/a8c4e3672c74491a80b53a172bb753fe.shtml> accessed 5 Sep 2021.

18 Guangzhou Arbitration Commission, ‘Recommended Application Standard for Internet Arbitration’ (10 Sep 2020) <https://www.gzac.org/gzxw/63533.jhtml> accessed 5 Sep 2021.

19 Guidelines on Proceeding with Arbitration Actively and Properly during the Pandemic [关于新冠肺炎疫情期间积极稳妥推进仲裁程序指引(试行)] (issued by China International Economic and Trade Arbitration Commission on 28 Apr 2020, effective 1 May 2020), art 2.4.

20 See the official website of the China Judgement Online <https://wenshu.court.gov.cn/> accessed 14 Jul 2021; the China Judgments Online project started on a massive scale in 2013. It is an online, full-text, open-access database of state court cases across China. Previously, the court rulings were available to general public in a fragmentary way, either through the official SPC Gazette or semi-official publications by various SPC divisions and courts of provincial level. See also Ahl, Björn & Sprick, Daniel, ‘Towards Judicial Transparency in China: The New Public Access Database for Court Decisions’ (2018) 32 China Information 322CrossRefGoogle Scholar; Ahl, Björn, Cai, Lidong & Xi, Chao, ‘Data-Driven Approaches to Studying Chinese Judicial Practice: Opportunities, Challenges, and Issues’ (2019) 19 China Review 1Google Scholar.

21 China's SPC decided that all court hearings need to be videotaped and deposited in a database. Furthermore, starting from 2016, some of these recordings have been available to the general public. They can be accessed through and online platform called the China Open Trial: China Open Trial <http://tingshen.court.gov.cn> accessed 9 Dec 2021.

22 The China Enforcement Online, see the official website <http://shixin.court.gov.cn/>accessed 9 December 2021.

23 Tian Lu, ‘The Implementation of Blockchain Technologies in Chinese Courts’ (Stanford Journal of Blockchain Law & Policy, 1 Jan 2021) <https://stanford-jblp.pubpub.org/pub/blockchain-in-chinese-courts> accessed 9 Dec 2021.

24 It is an applet of Wechat, which is the leading platform for Chinese users integrating the functions of communication, e-payments, etc. The idea behind the Mobile MiniCourt builds on the wide use of smartphones and WeChat in China. The applet uses technology to enable access to court services via smartphone.

25 One such example is the Beijing Internet Court <https://www.bjinternetcourt.gov.cn> accessed 15 Jan 2023.

26 The term was coined by Zhuhao Wang. See Wang, Zhuhao, ‘China's E-Justice Revolution’ (2021) 105 JudicatureGoogle Scholar.

27 The Online Litigation Rules for People's Courts [人民法院在线诉讼规则] (promulgated 16 Jun 2021, effective 1 Aug 2021).

28 Supreme People's Court, ‘Chinese Courts and Internet Judiciary’ (SPC White Paper, 2019) 64.

29 ibid 68.

30 Supreme People's Court, ‘The SPC Releases the Rules of Online Litigation of People's Court’ (18 Jun 2021) <http://english.court.gov.cn/2021-06/18/content_37545136.htm> accessed 9 Dec 2021.

31 PRC Civil Procedure Law (2021 Amendment), [中华人民共和国民事诉讼法 (2021 修正)].

32 See eg, Guodong Du & Meng Yu, ‘COVID-19 Turns all Chinese Courts into Internet Courts Overnight’ (China Justice Observer, 19 Feb 2020) <https://www.chinajusticeobserver.com/a/covid-19-turns-all-chinese-courts-into-internet-courts-overnight> accessed 9 Dec 2021.

33 Sourdin, Tania et al, ‘Court innovations and access to justice in times of crisis’ (2020) 9 Health Policy and Technology 447CrossRefGoogle ScholarPubMed.

34 See eg, Wang, Zhuhao, ‘China's E-Justice Revolution’ (2021) 105 Judicature 36Google Scholar; Shu, Shang Carrie & Guo, Wenli, ‘The Rise of Online Dispute Resolution-Led Justice in China: An Initial Look’ (2020) 1 ANU Journal of Law and Technology 25Google Scholar.

35 See supra note 27.

36 SPC Provisions on Several Issues Concerning the Trial of Cases by Internet Courts [最高人民法院关于互联网法院审理案件若干问题的规定 / 法释〔2018〕16号].

37 SPC Notice on Strengthening and Regulating the Online Litigation Work during the Period of Prevention and Control of the Covid-19 Outbreak [最高人民法院关于新冠肺炎疫情防控期间加强和规范在线诉讼工作的通知 / 法〔2020〕49号].

38 ibid.

39 Online Mediation Rules [人民法院在线调解规则].

40 Several Provisions on Providing Online Case Filing Services for Parties to Cross-border Litigation [关于为跨境诉讼当事人提供网上立案服务的若干规定].

41 ibid, art 7(3).

42 This will also be true for the Mobile MiniCourts applet that has been made available to non-Chinese parties.

43 See eg, China Airlines, ‘Flysafe Information & Service’ <https://news.china-airlines.com/bvct/immigration?country=us&locale=en> accessed 9 Dec 2021.

44 Notice by the Supreme People's Court of Issuing the Guiding Opinions on Several Issues of Properly Hearing Civil Cases involving the COVID-19 Pandemic (III) [最高人民法院印发《关于依法妥善审理涉新冠肺炎疫情民事案件若干问题的指导意见(三)》的通知)] (issued by the Supreme People's Court 8 Jun 2020, effective 8 Jun 2020).

45 Circular of the Supreme People's Court on the Promulgation of the Guiding Opinions of the Supreme People's Court on Several Issues Concerning Properly Handling Civil Cases related to COVID-19 Epidemic in Accordance with the Law (II) [最高人民法院印发《关于依法妥善审理涉新冠肺炎疫情民事案件若干问题的指导意见(二)》的通知] (promulgated by the Supreme People's Court 15 May 2020, effective 15 May 2020), art 21.

46 Guanyu Yinfa Tianjinshi Gaoji Renmin Fayuan Minshi Shenpan Diyiting Guanyu Shenli Shexinguan Feiyan Yiqing Xiangguan Minshi Anjian de Faguan Huiyi Jiyao (I) de Tongzhi [关于印发《天津市高级人民法院民事审判第一庭关于审理涉新冠肺炎疫情相关民事案件的法官会议纪要（一）》的通知] (promulgated by the First Civil Trial Chamber of Tianjin High People's Court 19 Mar 2020, effective 19 Mar 2020), art 14.

47 See supra note 44, art 3.

48 Notice by the Supreme People's Court of Strengthening and Regulating the Online Litigation Work during the Period of Prevention and Control of the COVID-19 Outbreak [最高人民法院关于新冠肺炎疫情防控期间加强和规范在线诉讼工作的通知] (issued by Supreme People's Court 14 Feb 2020, effective 14 Feb 2020)

49 See Wang (n 26) 72.

50 See Shang & Guo (n 34) 35–36.

51 See eg, Nanjing Maritime Court, ‘BOA BARGES AS vs. Nanjing Yichun Shipbuilding Co., Ltd. Dispute over International Shipbuilding Contract’ (10 Dec 2020) <http://www.njhsfy.gov.cn/en/resources/detail/id/2169.html> accessed 9 Dec 2021 (Boa Barges As vs. Nanjing Yichun Shipbuilding Co, Ltd concerning a dispute worth nearly US$50 million).