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Pathways and Outcomes in Developing International Commercial Arbitration Professionals

Introduction

As global governance systems improve and changes in the international order accelerate, international commercial arbitration plays a key role in resolving international commercial disputes. Their effective resolution in the international community depends on legal professionals who understand international rules and commercial practices. Strengthening talent development in international commercial arbitration helps its advantages and distinctive features stand out among today’s diverse dispute resolution methods.

I. Strong Demand for International Commercial Arbitration Professionals

High-level opening-up is reflected in a market-oriented, law-based, international and convenient business environment. “The rule of law is the best business environment,” and protecting economic development through the rule of law is integral to that principle. Compared with court litigation and other forms of alternative dispute resolution, arbitration offers distinctive advantages: confidentiality, specialization, flexibility, simple and swift procedures, finality, and international recognition and enforceability. It also provides parties choosing international arbitration with arbitrators who have specialist knowledge and diverse cultural backgrounds, affords greater party autonomy, promotes efficient dispute resolution, and ensures broad recognition and enforcement of awards worldwide.

In 2013, China first proposed establishing the “Silk Road Economic Belt,” followed by the “21st-Century Maritime Silk Road” at the Asia-Pacific Economic Cooperation (APEC) meeting in Bali, Indonesia (The Belt and Road Initiative). Countries and regions in the Asia Pacific are important partners in realizing China’s Belt and Road vision. Moreover, while chairing the tenth collective study session of the Political Bureau of the 20th CPC Central Committee, General Secretary 习近平 emphasized “developing, as soon as possible, a cohort of foreign-related legal professionals with firm political convictions, outstanding professional competence, a thorough understanding of international rules and expertise in foreign-related legal practice.” Against the backdrop of high-level opening-up, there is therefore an urgent need to develop international arbitration professionals with global perspectives, knowledge of international arbitration rules and different cultural backgrounds, cross-cultural communication skills, and practical involvement in every stage of international commercial dispute resolution.

II. The Current State of Training International Commercial Arbitration Professionals

A survey by the Arbitration Institute of China University of Political Science and Law of more than a hundred large state-owned enterprises expanding overseas, recommended by the State-owned Assets Supervision and Administration Commission, found that over 90% chose arbitration for foreign-related commercial disputes. Yet Chinese arbitration institutions rarely won favor in contracts with foreign parties, with most contracts providing for dispute resolution by overseas institutions. Respondents reported difficulty selecting Chinese arbitrators or arbitrators familiar with Chinese law in overseas arbitrations.

Overseas counsel and arbitrators have extensive practical experience and natural language advantages in international commercial dispute resolution. Chinese lawyers and arbitrators find it difficult to fully demonstrate their abilities on this stage. Although lawyers practicing international arbitration possess excellent foreign-language skills, shortcomings remain in advanced theoretical research and practical work in international commerce, and they often rely heavily on foreign lawyers and teams. International commercial arbitration cases are frequently complex because they involve multiple languages and legal backgrounds. The three main obstacles facing Chinese lawyers can be summarized as language, institutions and rules. In language, fewer than 10,000 arbitrators or lawyers in China are proficient in applying legal English or less commonly studied languages. Data released by the State Council Information Office in March 2021 showed that China had 520,000 lawyers, but only just over 12,000 foreign-related lawyers, revealing a substantial shortfall. Institutionally, a small number of international arbitration institutions dominate a large volume of cases. In 2018, the ICC International Court of Arbitration, SIAC and AAA accepted 59, 73 and 44 China-related cases, respectively. A major reason for this outflow is the acute shortage of domestic arbitration professionals. As for rules, legal elites in Europe and the United States have long shaped international arbitration rules, leaving Chinese arbitration professionals limited opportunities to contribute.

To develop young foreign-related legal professionals, China’s Ministry of Education issued the Notice on Implementing the Juris Master Postgraduate Training Program (Foreign-Related Lawyers) on February 2, 2021, and the Notice on Implementing the Juris Master Postgraduate Training Program (International Arbitration) on August 3, 2022. These programs aim to train high-level, internationally oriented, practice-focused foreign-related lawyers and arbitration professionals.

III. APIAC’s Pathways for Developing International Commercial Arbitration Professionals

1. Rigorous Selection of Arbitrators and Mediators with Strict Assessment Standards

The Asia Pacific International Arbitration Chamber (APIAC) conducts its commercial arbitration training program and organizes selection examinations for arbitrators and mediators, choosing the best candidates to build a professional, efficient team with foreign-language proficiency and international perspectives. Arbitrators currently on APIAC’s panel have strong legal foundations and expertise covering intellectual property, international investment, corporate finance and mergers and acquisitions, construction, energy and other fields.

2. Supporting Young Professionals and Developing Foreign-Related Talent

    APIAC is also bringing new talent into arbitration and remains committed to developing young professionals for international arbitration. In Southeast Asian countries and regions, young legal professionals with backgrounds in law and foreign languages join its arbitration secretarial team and receive specialist training throughout the case-handling process. Regular assessments ensure the team’s professionalism and rigor. APIAC also actively develops close cooperation with universities in mainland China, conducts theoretical research in international arbitration, and works with universities to establish training bases for foreign-related legal talent and attract outstanding young professionals.

3.Building on the Institution’s Own Strengths

Southeast Asia has substantial untapped markets that attract investment from around the world. Businesses in the region have significant demand for arbitration as a dispute resolution method. APIAC’s arbitration languages include Chinese, English, French, German, Spanish, Japanese, Indonesian, Korean and Cantonese. As Chinese businesses expand overseas, Chinese should also play a more confident and substantial role in international arbitration. APIAC offers Chinese-language services throughout proceedings, reducing the barriers and concerns Chinese parties face in international dispute resolution.

Conclusion

International commercial arbitration professionals are a key driving force behind the continual improvement of international commercial dispute resolution. Attracting and training legal professionals with international perspectives helps bring Chinese participation to the global rule-of-law stage, enables more confident involvement in international commercial dispute resolution, and promotes mutual learning among legal cultures worldwide. This is also crucial to APIAC’s vision of being “rooted in the Asia Pacific, with a global outlook.” Building on its own strengths and positioning, APIAC will provide parties with an efficient dispute resolution platform through high-quality legal services and promote effective resolution of commercial disputes in the region.