change, or terminate the commercial relationship have taken place outside the territory of the People’s Republic of China.” This provision fully reflects the fundamental difference between crossborder litigation and domestic litigation. What is the process for arbitration in China and when is arbitration most applied? Chinese commercial arbitration, as a product of the market economy, serves as a tool for the market economy. The scope of arbitration cases includes contract disputes and other property rights disputes between equal commercial subjects such as citizens, legal persons, and other organizations. Such disputes stem directly from economic exchanges and are purely property disputes. Arbitration is most suitable for disputing parties seeking efficiency, confidentiality, flexibility, and finality. jurisdictional characteristics. These elements include, but are not limited to, the defendant’s domicile, the place of contract performance, the place of contract signing, the plaintiff’s domicile, and the location of the subject matter. These elements are directly related to the jurisdiction of the People’s Court with practical connections to the dispute. Article 3 of the Provisions of the Supreme People’s Court on Several Issues Regarding the Establishment of the International Commercial Court stipulates: “A commercial case with one of the following situations can be regarded as an international commercial case under these Provisions: (a)one or both parties are foreigners, stateless persons, foreign enterprises or other organizations; (b) one or both parties have their habitual residence outside the territory of the People’s Republic of China; (c) the object in dispute is outside the territory of the People’s Republic of China; (d)legal facts that create, WWW.LAWYER-MONTHLY.COM 31 The longest statute of limitations for litigation is generally 20 years, calculated from the date the right is infringed upon.
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