The Recognition and Enforcement of the Foreign Arbitral Awards 'with No Foreign Element' in China

It is a hot topic in China in recent years among arbitration scholars and practitioners whether Chinese parties may submit their disputes with no foreign element to a foreign arbitral institution. The ruling made by the No. 2 Intermediate People's Court of Beijing on 20 January 2014 refusing the recognition and enforcement of an arbitration award made by the Korean Commercial Arbitration Board raised public concern over the issue again. This is the first arbitration award made by the Korean Commercial Arbitration Board denied recognition and enforcement in China and also the first foreign arbitration award denied recognition and enforcement in China on the basis of the fact that the Chinese parties submitted their dispute with no foreign element to a foreign arbitral institution, which will have significant implications for arbitration development in China.