（Revised and adopted at the 6th Session of the Third Shanghai Arbitration Commission on January 28, 2005 and shall be effective as of May 1, 2005）

Chapter I General Provisions

Article 1

For the purpose of protecting the parties' legitimate rights and interests and ensuring impartial and timely arbitration of civil and commercial disputes, these Rules are formulated on the basis of the Arbitration Law of the People's Republic of China (hereafter referred to as the Arbitration Law) and the provisions of other relevant laws.

Article 2 

The Shanghai Arbitration Commission and its affiliated arbitration bodies（hereinafter referred to as the Arbitration Commission）accept and hear disputes over contracts and other  property rights and interests occurred between equal subjects of natural persons, legal entities and other organizations, either Chinese or foreign.

The Arbitration Commission shall not accept and hear the following cases:

1. disputes over marriage, adoption, guardianship, maintenance, support and assistance, upbringing and inheritance;

2. labor disputes;

3. administrative disputes shall be settled by administrative organs according to law; and

4. agricultural contracting disputes within a rural collective economic organization.

Article 3

The Arbitration Commission shall accept and hear a case in accordance with the claimant's application and the parties' agreement.

An arbitration agreement refers to an arbitration clause in a contract or any other forms of written agreement for arbitration, concluded prior to or post the occurrence of the dispute.

An arbitration agreement in a contract shall be treated as independent from other clauses of the contract. Any modification, transfer, termination, ineffectiveness, null and void, expiry, or non-existence of the contract shall not affect the validity of an arbitration agreement.

Article 4

The Arbitration Commission shall, in accordance with the application of the parties concerned, be entitled to determine the existence and validity of an arbitration agreement and its jurisdiction over an arbitration case.

Article 5

An arbitration tribunal shall conduct arbitration independently, impartially and efficiently in accordance with the facts of a case, provisions of laws, international customs and practices and the principle of fairness and reasonableness.

Article 6 

Arbitration awards are final and binding on both parties. Once an award is made, the Arbitration Commission shall not accept any re-application for arbitration over the same dispute by any one of the parties concerned.

Article 7

Where the parties concerned agree to submit their disputes to the Arbitration Commission for arbitration, they shall be considered to have agreed that the arbitration shall be conducted by these Rules. However, if the parties concerned agreed otherwise on the matters of arbitration procedures or on the rules applied to arbitration, the agreement between the parties concerned shall prevail upon the approval of the Arbitration Commission.

Chapter II Application, Defense and Counterclaim

Article 8

The claimant shall meet the following requirements when applying for arbitration to the Arbitration Commission:

1. The claimant shall be natural persons, legal entities or other organizations that have direct interests with the case;

2. A specific respondent is required;

3. An agreement for submitting the case to the Arbitration Commission for arbitration is required;

4. The specific claim and the fact and reason on which the claim based are required;

5. The case falls in the acceptance scope of the Arbitration Commission.

Article 9

Where the claimant applies for arbitration, he/she shall submit the application and the following materials:

1. the document identifying the subject qualification of the parties concerned;

2. the copies of arbitration agreement, contract and appendixes and thereto;

3. Relevant evidence, certificate, or testimonies;

The claimant shall submit copies of the arbitration application，materials and documents provided in the preceding clause according to the number of the arbitrators of the arbitration agreed by the parties concerned or provided by these Rules and the number of the respondents.

Where the claimant appoints an agent to summit the application for arbitration, the power of attorney and the identity document of the agent shall be submitted.

Article 10 

The application for arbitration shall clearly state the following items:

1. The basic information of the claimant and the respondent: where the party concerned is a natural person, the name, gender, age, profession, working unit, domicile, zip code, and telephone number, etc. shall be clearly stated; where the party concerned is a legal entity or other organization, its name, domicile, zip code, telephone number, and the name, position, and contact information of its legal representative or chief officer shall be clearly stated;

2. The reason(s) for arbitration;

3. The claim and the fact and reason(s) based;

4. Evidence and the source of evidence, and the name, domicile, zip code and telephone number of the witnesses.

The application for arbitration shall be signed by the claimant. Where the claimant is a legal entity or other organization, the application for arbitration shall be signed by its legal representative or chief officer or sealed officially.

Article 11

Where this Arbitration Commission considers an arbitration application meets the requirements for acceptance, the claimant shall be notified to pre-pay the arbitration fee. Upon the receipt of the fee pre-paid, the Arbitration Commission shall accept the application in less than five days and deliver to the claimant the notice of arbitration acceptance and its attachments, the arbitration rules and the list of arbitrators of the Arbitration Commission.

Where the arbitration application does not meet the requirements for acceptance, the claimant shall be notified in writing, with statement of reasons.

Where the application materials submitted by the claimant are considered incomplete, the claimant may be required to complete the submission of the arbitration materials within the prescribed time limit; where the claimant manages to complete the submission within the prescribed time limit, the application shall be considered to meet the requirements for acceptance; otherwise, it shall be considered as no application submitted.

Article 12 

Having sent the notice of arbitration acceptance, this Arbitration Commission shall deliver in less than five days to the respondent the notice of arbitration with its attachments, the arbitration rules, the list of arbitrators of this Arbitration Commission, and a copy of the application for arbitration with its attachments.

Article 13

Having accepted an arbitration application, this Arbitration Commission shall appoint one or two secretaries for the case.

The secretaries are responsible for taking notes of the case and provide service for the management of arbitration procedures.

Article 14

The objection of a party concerned whether to the validity of the arbitration agreement or to the acceptance of the arbitration shall be put forward in writing prior to the initial hearing. Where a case is handled on the basis of documents only, the aforesaid objection shall be put forward in writing prior to the expiration of the time period set for the defense.

Article 15 

Where no objections are put forward by any of the parties concerned to the validity of the arbitration agreement within the prescribed time limit provided in Article 14, the validity of the arbitration agreement is considered to be admitted.

Where no objections put forward to the acceptance of the arbitration within the prescribed time limit provided in Article 14, the validity of the acceptance with jurisdiction of the arbitration is considered to be admitted.

Article 16 

Within 15 days upon the acceptance of the notice of arbitration, the respondent shall submit to the Arbitration Commission a statement of defense with relevant materials, and the document identifying the subject qualification as well.

Upon the receipt of the statement of defense, relevant materials, certificate, or testimonies, the Arbitration Commission shall deliver to the claimant a copy of the statement of defense and its attachments.

The act of failing to submit the statement of defense by the respondent shall not affect arbitration procedures.

Article 17

The respondent is entitled to raise a counterclaim.

The respondent shall specify his/her claim in the application for counterclaim and state the facts and reasons the counterclaim based on, with relevant evidence, certificates, or testimonies.

The respondent shall, within 15 days upon the receipt of the notice of arbitration, submit the application for counterclaim to the Arbitration Commission. Where the application for counterclaim is submitted beyond the prescribed time limit, the case shall only be accepted with the consent of the respondent of the counterclaim.

The matters for arbitration specified in the counterclaim shall fall within the scope of the arbitration agreement; and the respondent of the counterclaim shall be the claimant of the arbitration.

Where the Arbitration Commission considers the counterclaim meeting the requirements for acceptance, the counterclaimant shall be notified to pre-pay the arbitration fee. Upon the receipt of the fee pre-paid, the Arbitration Commission shall accept the counterclaim in less than five days and, meanwhile, deliver to the counterclaimant the notice of acceptance, and to the respondent of the counterclaim the notice of arbitration and a copy of the application for counterclaim with its attachments.

The respondent of the counterclaim shall submit a statement of defense to the counterclaim within 10 days upon the receipt of the notice of arbitration. The act of failing to submit the statement of defense shall not affect the arbitration procedures.

The claim and counterclaim of the arbitration shall be jointly heard.

Article 18 

The parties concerned may apply for the modification of the claim by the end of the initial hearing. Where the arbitration tribunal considers that a request for modification raised by the parties concerned too late and may affect the normal conduct of arbitration procedures, the request for modification shall be denied.

Where the legal relationship or the effect of civil action claimed by the parties concerned differ from what the arbitration tribunal recognizes based on the facts of the case, the parties concerned may be notified by the arbitration tribunal the modification of the claim and counterclaim. Where the parties concerned make no modification, the conduct of arbitration procedures shall not be affected.

Article 19 

Where the party may be impossible or difficult to enforce an award due to the acts of the counterparty or any other reasons, the party may apply for property preservation.

Where the party applies for property preservation, the Arbitration Commission shall submit his/her application to a court with jurisdiction according to relevant laws and regulations.

Article 20

The parties concerned may appoint an agent to handle arbitration matters. Where the arbitration matters are to be handled by the agent, the party/parties concerned shall submit a power of attorney and his/her identity document to the Arbitration Commission.

The power of attorney shall clearly state the matters entrusted and the scope of authority.

Article 21

Where the claimant applies for arbitration or the respondent applies for counterclaim, the arbitration fee shall be pre-paid according to the fee prescribed by the Arbitration Commission.

Arbitration fees include the fee for accepting a case and the fee for handling the case.

Where the party/parties concerned fail to pre-pay the arbitration fee within the prescribed time limit, he/she shall be considered to have withdrawn his/her application for arbitration or  counterclaim.

Article 22 

The arbitration tribunal decides the allocation of the arbitration fee. Where the case ends through conciliation of the parties concerned by mediation of the arbitration tribunal, the parties concerned may determine the amount or proportion of their respective arbitration fee through consultation; where the parties concerned fail to reach an agreement through consultation, the arbitration tribunal shall make a decision.

Article 23 

The parties concerned may request for the withdrawal of the arbitration application and counterclaim already accepted by the Arbitration Commission. A decision on whether the request accepted or not shall be made by the Arbitration Commission in case the request put forward prior to the formation of the arbitration tribunal, or by the arbitration tribunal in case the request put forward after its formation.

Where the withdrawal of the arbitration application and counterclaim are accepted, the fee pre-paid for service charge shall not be refunded. While for the fee prepaid for handling the case, in case the arbitration tribunal is not formed, the fee shall be refunded in full; in case the arbitration tribunal is formed, the fee shall be refunded in accordance with the circumstances.

Chapter III Formation of Arbitration Tribunal

Article 24 

The Arbitration Commission establishes the list of arbitrators and may, if necessary, establish the list of arbitrators on specialties.

The parties concerned shall appoint the members of an arbitration tribunal from the list of arbitrators or the list of arbitrators on specialties established by the Arbitration Commission.

Article 25 

An arbitration tribunal shall be composed of one or three arbitrators. Where the arbitration tribunal is composed of three arbitrators, there shall be a presiding arbitrator.

Article 26 

Where the amount of the claim in dispute totals more than RMB 500,000 yuan or where the amount of the claim in dispute totals less than RMB 500,000 yuan but the parties concerned make an agreement that the arbitration tribunal shall be composed of three arbitrators, each of the party concerned shall appoint one arbitrator as the members of the arbitration tribunal from the list of arbitrators within the prescribed time limit provided in the notice of arbitration acceptance or the notice of arbitration. One presiding arbitrator shall be jointly appointed by the parties concerned.

The parties concerned may also nominate one to three persons as presiding arbitrators from the list of presiding arbitrators recommended by the Arbitration Commission. If an arbitrator in the proposed list nominated by both parties concerned, he/she shall be regarded as the presiding arbitrator of the case selected by the parties concerned; if more than two arbitrators nominated by both parties concerned, the presiding arbitrator of the case shall be determined by the director of the Arbitration Commission by selection from the persons nominated by both parties concerned; if none of the parties concerned nominate specific persons or the parties concerned nominate two different persons, it shall be regarded as that none presiding arbitrators are commonly selected by both parties concerned.

Where a party concerned consists of two or more persons, one arbitrator or presiding arbitrator shall be jointly appointed.

Where the arbitration tribunal, either agreed by the parties concerned or provided by these Rules, shall be composed of one arbitrator, the parties concerned shall jointly appoint one arbitrator from the list of arbitrators or from the name list recommended by this Arbitration Commission within the prescribed time limit.

Article 27 

Where the arbitrator appointed by the parties concerned lives and works outside the Shanghai municipal administrative area, the parties concerned shall, according to the notice of the Arbitration Commission, pay rational traveling and accommodation fee incurred by the arbitrator. Where the parties concerned fail to pay, the arbitrator shall be considered not to have been appointed.

Article 28 

The director of the arbitration tribunal shall appoint members of an arbitration tribunal under any one of the following circumstances:

1. under the joint entrustment of the parties concerned;

2. where the member fails to be jointly appointed by a party consisting of two or more persons;

3.       where the member fails to be appointed or appointed by the parties concerned beyond the prescribed time limit;

4.       where the member shall be jointly appointed by the parties concerned but fails to be jointly appointed; and

5.       the situation provided in Article 27 occurs.

Article 29 

Having formed an arbitration tribunal, the Arbitration Commission shall deliver to the parties concerned and the member(s) of the arbitration tribunal the notice of the formation of the arbitration tribunal.

Article 30 

Upon the receipt of the notice of formation of the arbitration tribunal, where the arbitrator considers he/she falls under one of the situation provided in Article 34 of the Arbitration Law, he/she shall report to the Arbitration Commission and request a withdrawal from the case.

Article 31 

Where the parties concerned consider an arbitrator must withdraw, the parties concerned are entitled to challenge the arbitrator, and shall raise the challenge in writing prior to the initial hearing.

Where the reasons of withdrawal become known at the hearing, the challenge may be raised in writing prior to the final hearing comes to an end. Where the party fails to raise the challenge in writing prior to the final hearing comes to an end, no challenge is considered to have been raised.

The party concerned shall state the reasons and provide relevant materials for raising a challenge.

Article 32 

The director of the Arbitration Commission shall decide whether or not an arbitrator is to withdraw; where the director acts as an arbitrator, the Arbitration Commission shall collectively decide whether or not he/she is to withdraw.

Article 33 

Where the arbitrator is unable to perform his/her duty or quits the arbitration tribunal due to withdrawal/challenge, health or any other reasons, the parties concerned shall appoint other arbitrator(s) according to the provisions of these Rules or authorize the director of the Arbitration Commission to make an assignment again. Where the parties concerned fail to appoint the arbitrator or appoint the arbitrator beyond the prescribed time limit, the director shall assign the arbitrator.

Having re-appointed or re-assigned the arbitrator, the arbitration procedure of hearings shall be done all over again, unless the parties concerned have clearly expressed the hearings already undertaken shall not be done all over again.

Chapter IV Evidence

Article 34 

The parties concerned bear the responsibility to provide evidence proving the facts on which his/her claim, counterclaim or rebut based.

Where there is no evidence or the evidence provided cannot prove the facts, the party concerned with the burden of proof shall bear the ensuing adverse consequence.

Article 35

The parties concerned shall submit evidence within the prescribed time limit set by the Arbitration Commission. Where the evidence fails to be submitted within the prescribed time limit, it shall be regarded as waiver.

Where the party concerned truly has difficulties to provide evidence within the prescribed time limit for submitting evidence, a written application for extending the prescribed time limit shall be put forward to the Arbitration Commission or the arbitration tribunal. This Arbitration Commission shall decide whether or not extend the time limit. Each of the party concerned may only apply for the extension of evidence for one time.

The Arbitration Commission shall not admit any evidence submitted beyond the prescribed time limit, and the arbitration tribunal shall not arrange questioning, unless the counterparty consents.

Article 36

The evidence provided by the parties concerned include documentary evidence, material evidence, audio-visual materials, testimony of witness, expert conclusion, records of inquests and other kinds of evidence provided by law.

Documentary and material evidence shall be original. Where it is truly difficult to provide the original document and materials, reproduction, extract, photograph of the original may be submitted provided that their sources are marked.

Where the documentary evidence submitted is in foreign language, the arbitration tribunal may require the party concerned to provide translation in Chinese or in other language(s) if the arbitration tribunal considers it necessary.

Article 37 

The arbitration tribunal may investigate the facts and collect evidence on its own if it considers necessary.

The arbitration tribunal may notify the parties concerned to be present when investigating the facts and collecting evidence. However, the absence of the parties concerned shall not prevent the arbitration tribunal from carrying out facts investigation and evidence collection.

Article 38 

Under the circumstances of the possibility of the losing of evidence or difficult to obtain the evidence in future, the parties concerned may apply for evidence preservation.

Where the parties concerned apply for evidence preservation, the Arbitration Commission shall, in accordance with the provisions of laws, transfer the application of the parties concerned to the court where the evidence located.

Article 39 

Where the parties concerned request for appraisal and the arbitration tribunal approves, or, where the parties concerned have not requested but the arbitration tribunal considers it necessary, the arbitration tribunal may submit the matter to an appropriate appraisal institution authorized by law. Where there is no corresponding institution authorized by law, the parties concerned shall be notified to jointly appoint an appraisal institution or appraiser within the prescribed time limit by the arbitration tribunal. Where the parties concerned fail to make a joint appointment, the arbitration tribunal shall assign an appraisal institution or appraiser. The parties concerned shall pre-pay the appraisal fee within the prescribed time limit according to the decision of the arbitration tribunal.

The appraisal institution may be either Chinese or foreign ones; and the appraiser may be either Chinese or foreign experts.

The copy of the appraisal report shall be delivered to each of the party concerned prior to the hearing. The parties concerned may give written opinions on the appraisal report.

At the request of the party concerned and with the approval of the arbitration tribunal, the appraiser shall be at the hearing and questioned by the party concerned. Where the appraiser truly has difficults to be at the hearing, he/she may, with the approval of the arbitration tribunal, answer the questions raised by the party concerned in writing. The party concerned making the request shall pay in advance the expenses related to the presence of the appraiser at the hearing.

Where the party concerned having the burden of proof for the appraisal fails to pre-pay the appraisal fee or submit documents related to the appraisal, materials and other articles within the prescribed time limit and thus leads to the failure of the appraisal, he/she shall bear the consequences for being unable to provide evidence.

Article 40

Evidence shall be presented at the hearing and questioned by the parties concerned arranged by the arbitration tribunal.

The arbitration tribunal shall not accept the evidence newly submitted by the party(ies) concerned unless the counterparty consents. If the arbitration tribunal accepts such evidence, the counterparty shall have reasonable time to prepare for question and is allowed to produce rebuttal evidence. Unless the counterparty express consent, the newly-submitted evidence shall not be heard in tribunal. Where the arbitration tribunal decides, upon the consent of both parties, not to hold any further hearings, the arbitration tribunal may require the parties concerned to submit written statement of question within the prescribed time limit.

Where a party concerned applies for the appearance of a witness to testify at the hearing, the approval from the arbitration tribunal shall be obtained. The reasonable expenses paid for such witness to testify at the hearing shall be borne by the party applied for such testimony himself/herself.

Article 41

The arbitration tribunal may require the party concerned to produce additional evidence after the hearing according to the need of trying. Where the party concerned fails to submit additional evidence within the prescribed time limit provided by the arbitration tribunal, it shall be considered as “inability to produce additional evidence”. Where the party concerned submits additional evidence beyond the prescribed time limit provided by the arbitration tribunal, the arbitration tribunal may not accept or organize the procedure of question on such evidence unless consented by the counterparty.

Article 42

The arbitration tribunal shall affirm the evidence questioned by the parties concerned.

Where a party neither admits nor denies the fact stated by the counterparty, or not has a clear and definite response to the inquiry made by the arbitration tribunal, the act of the party shall be considered as the admission of the fact.

Where a party concerned admits the fact and evidence unfavorable to him/her in arbitration application, statement of defense, statements and other written materials, the arbitration tribunal shall affirm such fact and evidence, unless the party concerned goes back on his/her admission and produces contrary evidence sufficient to reverse such fact and evidence.

Where there is proof that a party concerned holds evidence and refuses to submit without justifiable reasons, and where the counterparty claims that the content of such evidence is unfavorable to the holder, such claim may be presumed to be tenable.

Chapter V Case Hearing

Article 43

Arbitration tribunals shall hold hearings to handle cases.

Where the parties concerned agree not to hold hearings, a written agreement between the parties concerned shall be submitted to the Arbitration Commission. The arbitration tribunal may handle the case in terms of written documents on the basis of arbitration application, statement of defense, and testimonial materials.

Hearings shall not be open. The parties concerned, their agents, witnesses, arbitrators, experts consulted by the arbitration tribunal, or appraisers designated by the arbitration tribunal, and relevant staff-members of the Arbitration Commission shall bear the responsibility of confidentiality and shall not reveal to the public the situation of either substantive or procedural matters of cases unless otherwise provided by laws and regulations.

Where the parties concerned agree to have the case heard openly, a written agreement shall be submitted to the Arbitration Commission five days before the date of initial hearing. Open hearings may be held unless state secrets are involved.

The place of hearing shall be set by the Arbitration Commission. Where the parties concerned have other agreements or their common request be approved by the Arbitration Commission, the hearings may be held in other places. The parties concerned shall bear extra expenses incurred.

Article 44

Where the parties concerned of two or more than two cases are the same and the subjects thereof are of the same kind, or related, the arbitration tribunal may, upon the consent of the parties concerned, decide to hold a joint hearing.

Where the arbitration tribunals of different cases composed of different arbitrators, the cases must not be heard jointly.

Article 45

The Notice of Initial Hearing shall be delivered to both parties concerned 10 days before the date of hearing.

Where the parties concerned reached consensus and the arbitration tribunal approves, the date of the initial hearing may be moved up. The time limit for the delivery of the Notice of Hearing is not restricted by the preceding clause.

Where a party concerned has justifiable reasons to apply for the postponement of the hearing, the written application with reasons stated for the postponement of the hearing shall be submitted to the Arbitration Commission 5 days before the date of hearing. The arbitration tribunal shall decide whether to postpone the hearing or not.

The time for the delivery of the notice of other hearings shall not be restricted by Clause 1 of this Article.

Article 46

Where the claimant or the counterclaimant is absence without justifiable reasons after being notified in writing, or left the tribunal in the course of hearing without permit from the arbitration tribunal, the act shall be considered as the withdrawal of arbitration application, or the withdrawal of arbitration counterclaim application.

Where the respondent or the respondent of the counterclaim, is absence without justifiable reasons after being notified in writing, or left the tribunal in the course of hearing without permit from the arbitration tribunal, the arbitration tribunal may proceed and make an award by default.

Article 47

The arbitration tribunal shall announce the list of the members of arbitration tribunal at the initial hearing, and inquire the parties concerned whether the arbitrators will be challenged.

The members of the arbitration tribunal shall vow at the initial hearing to follow the provisions of the Arbitration Law and these Rules, and perform the duties of an arbitrator independently, impartially, and effectively.

In the hearing process, the parties concerned are entitled to make statements, present evidence, question evidence and express opinions in a debate. At the final stage of the debate, the arbitration tribunal shall solicit final suggestions from the parties concerned.

Article 48

When hearing a case, the arbitration tribunal shall make minutes of the hearing and may arrange for audio record at the same time. Where the parties concerned or other participants of the arbitration consider that there exists omissions and errors in the records of their statements, they are entitled to apply for correction. The arbitration tribunal shall decide whether the correction is permitted. Where the arbitration tribunal denies the application, such application shall be recorded.

The minutes of the hearing shall be signed or stamped by the arbitrator(s), the secretary, the parties concerned, and other participants of the arbitration.

No party is entitled to consult, copy the minutes and audio records of the hearing.

Article 49

The parties concerned may reach conciliation by themselves after applying for the arbitration. Where the parties concerned reach conciliation, they may request the arbitration tribunal to make award on the basis of the conciliation agreement, or withdraw the arbitration application.

Where the parties concerned reach a conciliation agreement, and one of the parties concerned withdraws his/her arbitration application or counter-application, the counterparty who goes back on the conciliation agreement may apply for a new arbitration according to the arbitration agreement.

Chapter VI Mediation

Article 50

The arbitration tribunal shall organize mediation on the principle of voluntariness.

Where the contents of agreement reached through mediation goes beyond the scope of the arbitration claims, the act of reaching agreement is permitted.

The contents of agreement reached through mediation shall not harm the interests of the State, the collectives or any third person.

Article 51

The arbitration tribunal may organize mediation in or after the hearing process.

Where the parties concerned voluntarily apply for mediation or the facts of the case are clear and definite, the arbitration tribunal may organize mediation before the hearing.

The time and place for mediation shall be fixed either by the parties concerned and approved by the arbitration tribunal, or by the arbitration tribunal.

Article 52

Where a party concerned applies for the participation of a non-party in the mediation, and where the counterparty and the said party approves, the arbitration tribunal may notify the said party to participate in the mediation. Where the said party agrees to undertake civil liabilities, the arbitration tribunal shall approve.

Article 53

The mediation process shall not be recorded.

Any of the parties concerned shall not cite, in subsequent arbitration proceeding, judicial proceeding, or any other proceedings, any statements, opinions, views or suggestions expressed or put forward by the parties concerned or an arbitrator(s) in mediation process.

The arbitration tribunal shall not take the opinions expressed by the parties concerned in mediation process as the basis of an award.

Article 54

Where an agreement is reached through mediation, the arbitration tribunal shall make a mediation paper or an award on the basis of the outcome of the mediation agreement. Where the prompt performance is possible, or the parties concerned indicate that it is unnecessary to make a mediation paper or an award, the mediation agreement shall be recorded in the minutes. The minutes will be authentic after being signed or stamped by both parties concerned, the arbitrator(s) and the secretary.

Where the mediation is a failure or the parties concerned goes back on mediation agreement before the signing of acknowledging the receipt of mediation paper, the arbitration tribunal shall make an award without delay.

Article 55

A mediation paper shall state the information of the parties concerned, the claim and the outcome of the mediation agreement reached between the parties concerned.

The mediation paper shall be signed by arbitrators, stamped by the Arbitration Commission, and served on both parties concerned. The mediation paper shall become authentic after being signed and accepted by both parties concerned.

Mediation paper has the same legal effect as the award paper.

Article 56

Arbitration tribunal shall rectify the characters and typos in an effective mediation paper. The parties concerned may apply to arbitration tribunal for rectifications within 30 days from the date of accepting the mediation paper.

The decision for rectification made by arbitration tribunal has the same legal effect as the mediation paper.

Chapter VII Award

Article 57

The arbitration tribunal is composed of three arbitrators who shall deliberate the case before the making of an award, and the secretary shall record the deliberation.

An award shall be made subject to the opinions of the majority of arbitrators and the opinions of minority of arbitrators may be recorded in deliberation minutes. Where the arbitration tribunal cannot reach a majority opinion, the award shall be made subject to the opinions of the presiding arbitrator.

Where the arbitration tribunal is composed of a sole arbitrator, an award shall be made directly by the sole arbitrator.

Article 58

The arbitration tribunal may make a partial award on the part with clear and definite facts in the hearing process.

Article 59

The arbitration tribunal is entitled to order the party at fault to compensate the counterparty who kept his/her words reasonable expenses incurred in handling the case.

Article 60

The arbitration tribunal shall make the award within four months from the date of its formation. Where it is necessary to have the time limit for arbitration extended under special circumstances, the arbitration tribunal shall report to the director of the Arbitration Commission for approval.

The four-month period mentioned in the preceding clause shall not include the suspension period of arbitration procedures, or the time period for auditing, price-inspection, verification, assessment, appraisal, inspection and examination on special issues, or the time period requested in writing by both parties concerned from the arbitration tribunal for reaching a self-conciliation outside the arbitration tribunal.

Article 61

The award paper shall state clearly the information of the parties concerned, the arbitration claim, the facts of the disputes, the reasons on which the award is based, the result of the award, the time limit for performance, the allocation of arbitration expenses, and the date of the award. Where the parties concerned agree on not to state the facts of the disputes and the reason on which the award is based, the award paper may not include these information.

The award paper shall be signed by arbitrators and stamped by the Arbitration Commission. The arbitrator(s) who holds different opinions may or may not sign on the award paper.

Article 62

The arbitration tribunal shall rectify any writing mistakes, calculating errors, or the items awarded by the arbitration tribunal but omitted in the award paper. The parties concerned may apply to the arbitration tribunal for rectification within 30 days from the date of accepting the award paper.

The rectification to an award paper shall be made in the form of a decision.

The decision made by arbitration tribunal on rectification is an integral part of the award paper, and becomes authentic on the same date of the award paper.

Article 63

The award paper becomes effective on the date of issuing.

Article 64

The parties concerned shall perform the award within the prescribed time limit provided by the award paper. Where the award paper provides no time limit for performance, the parties concerned shall perform the award upon the acceptance of award paper.

Where a party concerned fails to perform the award, the counterparty may apply for enforcement to the people's court with jurisdiction in accordance with the provisions of China laws; where the place of enforcement is outside China, the counterparty may apply for enforcement to the court with jurisdiction in accordance with the “Convention on the Recognition and Enforcement of Foreign Arbitral Awards” adopted on June 10, 1958 by the UN Conference on International Commercial Arbitration or other international treaties or bilateral treaties for which China is a signatory state or contracting party.

Chapter VIII Summary Procedure