Legal agencies to help enterprises expand overseas

The China Council for the Promotion of International Trade announced on Monday the establishment of two arbitration agencies to assist Chinese companies' global expansion.

The two agencies will be under the supervision of the China International Economic and Trade Arbitration Commission and the China Maritime Arbitration Commission, the international trade and maritime arbitration institutions of the CCPIT.

Yu Jianlong, deputy director of the CIETAC, said both agencies will resolve economic and trade disputes through independent, impartial arbitration.

"Chinese companies are facing possible operational and legal risks in developed and developing markets," said Yu. "Therefore, they need more legal assistance and equal treatment in the fields of international commercial and maritime business, as well as specialized arbitration agencies to protect their interests in overseas markets."

The CIETAC accepted 1,009 cases regarding trade, investment and legal issues between January and August this year, up 30.7 percent from the same period a year earlier. The cases involved 22.3 billion yuan ($3.61 billion), up 93 percent.

The main task in international economic and trade arbitration involves accepting international and domestic cases related to individuals and organizations, offering dispute resolution services in accordance with the agreement of the parties and accepting cases on the authorization of domestic and foreign governments and international organizations.

The maritime arbitration agency is responsible for cases involving maritime disputes, including collisions, problems arising from management, operations, chartering and mortgages, and issues regarding the utilization of marine resources and pollution damage to the marine environment.

Chen Zhengrong, deputy secretary-general of the CCPIT, said the establishment of these two arbitration commissions will not only benefit the country's exporters but also the development of the China (Shanghai) Pilot Free Trade Zone, the Silk Road economic belt, the 21st Century Maritime Silk Road and various regional economies.

"Because many small and medium-sized enterprises lack legal knowledge of foreign markets, they usually don't respond to the summons of foreign arbitration courts or agencies after they are sued. The direct consequence for them is to bear financial burdens and this could make them quite weak in competing in overseas markets," Chen said.

Chen Yongjun, a business professor at the Renmin University of China in Beijing, said trade cases against China have risen fast in the past two years, largely due to a sluggish world economy.

Trade actions against China have also shifted from low-end industries to high-tech sectors, and protectionism has increasingly become an option.

The CCPIT on Monday also established a certification center for commercial activities and a legal service center to offer certificates of origin, certificates for import goods with temporary admission, international trading certificates and legal advice, as well as consulting services to assist and improve Chinese companies' earning ability.