African Center for international arbitration

Introduction to the Governance Mechanism of Statutory Institutions

In 2012, the Shenzhen Municipal Government introduced the legal institution management model and formulated the government regulation "Shenzhen International Arbitration Court Management Regulations" (Trial) for the Shenzhen International Arbitration Court, which was China's first specialized legislation on arbitration institutions. The core content of legislation is to establish a corporate governance structure centered on an internationalized and specialized council. According to this legislation, the decision-making power and supervisory power over the executive management of the arbitral tribunal are exercised by the council, and at least one-third of the council members should come from Hong Kong and overseas. At present, 7 out of the 13 members of the second council of our institute are from Hong Kong and overseas. All major decisions are voted upon by the board meeting. This establishes the independence of the operation of arbitration institutions and the handling of cases by arbitration courts in the system, eliminating concerns from domestic and foreign parties about the independence and credibility of Chinese arbitration institutions.

On June 1, 2019, the Management Regulations of Shenzhen International Arbitration Court, revised by the Executive Meeting of the Shenzhen Municipal Government, came into effect. The revised Management Regulations continue to maintain international leadership and further clarify the legal status of the Shenzhen International Arbitration Court: it is an arbitration institution established by the Shenzhen Municipal People's Government to fulfill the responsibilities of the arbitration commission as stipulated in the Arbitration Law of the People's Republic of China in accordance with the law. At the same time, it is clear that the Shenzhen International Arbitration Court will use the names of the South China International Economic and Trade Arbitration Commission and the Shenzhen Arbitration Commission simultaneously, inheriting the achievements of the Shenzhen Special Economic Zone's reform and opening up over 40 years, and also determining the first national merger of arbitration institutions at the legislative level of the Special Economic Zone.

On August 26, 2020, on the 40th anniversary of the establishment of the Shenzhen Special Economic Zone, the 44th meeting of the Standing Committee of the Sixth People's Congress of Shenzhen approved the Regulations of the Shenzhen International Arbitration Court. The Regulations are the first local people's congress legislation in China to specifically target arbitration institutions. The promulgation of the Regulations will further improve the corporate governance structure of the Shenzhen International Arbitration Court, legalize the reform achievements of international arbitration in the form of special zone regulations, enhance the independence and credibility of international arbitration in the special zone, enhance the confidence of domestic and foreign parties in the rule of law in the special zone and Chinese arbitration, and provide strong institutional guarantees for the construction of a stable, fair, transparent, and predictable international first-class legal business environment in the Shenzhen Special Economic Zone.