Arbitration is a solution to settle disputes for involved parties who voluntarily submit a dispute, if any, to the arbitration committee for arbitration and are bound by the verdict of such arbitration accordingly. In accordance with the Arbitration Law of the People’s Republic of China, any and all contractual disputes and other disputes related to properties and/or rights and interests between/among citizens, corporations, and other organizations as subjects with equal status may be submitted for arbitration.

Compared with the settling approach of other disputes, arbitration has the features as follows:

(1) Any submission for arbitration shall be subject to the free will of both parties of the actual dispute. In case either party or both parties do not agree with such a submission, the means of settlement by arbitration shall not be adopted. The said free will of both parties shall be embodied in their arbitration agreement.

(2) The third party to the dispute settlement, i.e. the party to arbitrate the actual dispute, shall be mutually appointed by both parties.

(3) The verdict of arbitration shall be enforceable. Once both parties choose to settle the actual dispute via arbitration, the verdict by the arbitrator shall be binding to both parties who are subject to the execution of the verdict, otherwise the obligee may apply to the court for enforcement.