Josh commented: “I think that with any governing or dispute resolution clause it’s an issue of negotiation as to which body and which governing law the parties agree on.” I have come across occasions where the Chinese insist on Chinese law and a Chinese [dispute resolution] seat, and they simply won’t give out a contract if the other party does not agree.”
“With the large institutions like the ICC International Court of Arbitration, you see good quality decisions, so they tend to be trusted a bit more, whereas there is a sort of underlying feeling that with Chinese courts and Chinese arbitration there’s a bias.” He adds that for some there is a view that “[Chinese] decisions aren’t fully reasoned, and you don’t get a long award which describes all the process [arbitrators or judges] have been through.”