In China the Supreme People's Court has given a binding ruling on how lower courts are to decide jurisdiction issues arising out of the CIETAC split. Back in August 2012, the former Shanghai and Shenzhen sub-commissions split from CIETAC to form their own bodies, giving rise to uncertainty as to which organisation should have jurisdiction over disputes arising under contracts that were concluded before the split.
The SPC has now held that:
- Disputes arising under contracts which refer to the 'CIETAC Shanghai Sub-Commission' will be determined by the newly formed Shanghai International Arbitration Centre (SHIAC).
- Disputes arising under contracts which refer to the 'South China Sub-Commission' will be determined by the newly formed Shenzhen Court of International Arbitration (SCIA).
- In all other cases, CIETAC will retain jurisdiction.
The ruling will hopefully bring some much needed clarification for parties arbitrating in China.