Home Editorial Insight When arbitration is not voluntary: the case of Mutu As of 2017 there were over 1,700 BRI projects, moreFor instance, the China Internationalmore recognised and enforced by Chinesejudicial institutions. In this regard, China and Pechstein v. Switzerland than 600 BRI-related contracts had been signed, andEconomic and Trade Arbitration Commission (“CIETAC”), a well-known has adopted several measures to enhance Global Briefing China had committed over USD 926 billion Chinese arbitration institution, has: supervision over local courts when it The impact of The Belt andRoad Initiative on investment in BRI-related projects i. issued international committed comes to the recognition and enforcementof foreign arbitration awards. For instance, arbitration arbitration rules, effective since 1 the Supreme Court of China requires local “What’s in a name?”: NAFTA October 2017,4 and courts to inform their higher courts before to USMCA and what this private corporations) and banks signed, and China had committed over change means for investment ii. established an Investment Dispute making any decision by which they refuse protection will play a major role in planning USD 926 billion in BRI-related projects.2 Resolution Center in Beijing to hear to enforce a foreign arbitration award.6 and implementing BRI projects. In investment disputes. Nevertheless, In Focus particular, it is expected that Chinese The purpose of this article is to analyse these disputes may also be The likely increase in Investor-State Cultural Heritage construction companies will perform the current and potential impact of the administered by CIETAC’s Hong Dispute Settlement Considerations in much of the construction necessary BRI on investment arbitration. Kong Arbitration Centre.5 International Investment to implement the BRI and Chinese Arbitration Another likely consequence of the BRI corporations will assist in managing The impact of the BRI on Arbitration The Shenzhen Court of International is an increase in investor-state dispute Smart Contracts and the resulting facilities. Chinese banks Institutions3 Arbitration ("SCIA"), another Chinese settlement (“ISDS”). International Arbitration: (along with financial institutions and Friends or Foes? arbitration institution, has also adapted international banks, specially the Asian One of the first consequences of the its arbitration rules to enable it to China is currently party to 108 BITs and to The Achmea decision: Infrastructure Investment Bank) will BRI for investment arbitration has been administer investor-state arbitrations 19 treaties with investment provisions that significant uncertainties linger structure the financing. the adoption by Chinese arbitration under the UNCITRAL Arbitration Rules. are in force. This makes China the country institutions of rules to administer with the second highest number of BITs in Investment Arbitration: According to the World Bank, BRI investor-state disputes. It is worth mentioning that awards force, behind Germany. China is also party Contact Lawyers countries account for over 30% of global issued in the framework of arbitration to the New York and ICSID Conventions.7 GDP, 62% of the population, and 75% 2 NORTON, Patrick M.: China’s belt and road initiative:proceedings are becoming more and of known energy reserves. As of 20171 challengesfor arbitration in Asia, Penn Law Legal 6 Source: Notice of the Supreme People’s Court on the there were over 1,700 BRI projects, more Scholarship Repository, 2018. Handling of Issues Concerning Foreign-related Arbitration 3 We will refer only to those changes or adaptations by arbitral 4An English version of CIETAC’s Internationaland Foreign Arbitration by People’s Courts than 600 BRI-related contracts had been institutions that could be relevant for investment arbitration.Investment Arbitration Rules may be accessed in 7A full list of the BITs, Treaties with Investment Hence, we will not refer to other significant developments arisingthe following link: http://www.cietac.org/index.Provisions and Investment Related Instruments as a consequence of the BRI, such as the establishment by php?m=Page&a=index&id=390&l=en. entered into by China can be found in the following 1Source: World Bank, https://www.worldbank.org/en/ China of International Commercial Courts to hear international 5See CIETAC’s International Investment Arbitration Rulelink: http://investmentpolicyhub.unctad.org/IIA/ www.uria.com topic/regional-integration/brief/belt-and-road-initiative .commercial disputes. nº 4,4. CountryBits/42#iiaInnerMenu. 8