Recognition and enforcement of a Chinese arbitral award abroad
Anonymised case · Professional reference
Background and challenges
A Chinese investment company obtained an arbitral award from the China International Economic and Trade Arbitration Commission (CIETAC) in a dispute over RMB 15 million payable under an equity repurchase arrangement. The counterparty refused to comply and held assets overseas, making cross-border enforcement necessary.
Approach and implementation
The team helped the company apply to a federal district court in Ohio, United States, for recognition and enforcement under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention). Responding to arguments that the award was not binding and that enforcement would violate US public policy, it submitted the award and evidence of performance and procedure, demonstrated that the award was binding and the public policy exception did not apply, and pursued a decision through the Convention's summary procedure.
Outcomes
In November 2024, the US court granted recognition and enforcement of the CIETAC award. The outcome provides a representative example of enforcing a Chinese arbitral award abroad.
Lessons for international cooperation and governance
The New York Convention provides an institutional basis for cross-border enforcement, with the public policy exception applying only in exceptional circumstances. The case illustrates the importance of selecting established arbitral institutions and rules in international commercial contracts, and of coordinating across jurisdictions to enforce awards.