Resolution of Economic Disputes: Administrative Reconsideration
Resolution of Economic Disputes: Administrative Reconsideration
(II) Principles of economic arbitration
The basic principles of economic arbitration apply through the whole process of arbitration, and are the guidelines that must be followed by arbitration institutions and the disputing parties. The basic principles of economic arbitration mainly include the following.
1. The principle of voluntary arbitration
An arbitration institution exercises the power to arbitrate a case based on the voluntary application of the disputing parties. In other words, either disputing party may file a request for arbitration to the arbitration institution agreed under the arbitration agreement entered into either before or after the occurrence of the dispute, and the arbitration institution may arbitrate the case only upon request. Article 4 of the Arbitration Law states, "The parties who intend to settle their disputes by arbitration shall reach an arbitration agreement of their free will. Where either party files a request for arbitration in the absence of an arbitration agreement, the arbitration commission shall reject the request.”
The principle of voluntary arbitration is mainly embodied in the following aspects: ① The disputing parties may decide, of their free will, whether to submit their dispute to an arbitration institution for arbitration; ② The disputing parties may agree, of their free will, on which disputed matters should be referred to arbitration; ③ The disputing parties may agree, of their free will, on the arbitration institution and arbitrators; and ④ The disputing parties may agree, of their free will, on the hearing method, trial method, and other procedural matters in arbitration.
2. The principle of fairness and reasonableness
Arbitration should be based on facts and according to the law, and an award should be rendered impartially and fairly. In the absence applicable legal provisions or in case of incomplete legal provisions, the arbitral tribunal may resolve disputes in accordance with the principle of fairness and reasonableness.
3. The principle of independent arbitration
The Arbitration Law expressly states that arbitration shall be conducted independently according to law without being interfered by any administrative authority, social entity, or individual. An arbitration commission shall be independent of and not be subordinate to any administrative authority. An arbitral tribunal shall independently adjudicate cases, and the arbitration commission or any authority, social entity, or individual shall not interfere.
4. The principle of final award
Arbitration is a way to resolve economic cases at the free choice of the disputing parties, and an arbitration award has legal effect and is binding on both parties. If a party files a request for arbitration or brings a lawsuit after an award has been made for the same dispute, the arbitration commission or people's court shall reject the case.
Robert Zhang 
Steve Li 