THE APPLICATION OF THE CISG IN THE CURRENT PRC LAW AND CIETAC ARBITRATION PRACTICE

Abstract

It is generally acknowledged that the CISG has influenced the legislation of the People’s Republic of China (PRC), but what and where exactly are the influences? How and to what extent has the CISG influenced the PRC legislations and/or legislators? A careful study of the interaction between the CISG and the legislation history and development of the PRC Law is needed. This chapter will address these issues before reviewing the application of the CISG in the current PRC law and practice. It is submitted that it is impossible to examine the impacts of the CISG on the PRC legislation without first studying the incorporation history of the CISG in the country. The first task of this Chapter is therefore to explore not only the 1980 Diplomatic Conference records and texts, but also the historical, social, economic, political and cultural backgrounds for the incorporation of the CISG in the PRC. The two reservations under Article 95 and Article 96 declared by the PRC upon ratification of the CISG will be analysed in detail so as to appreciate the reasons for and the influences behind these declarations. More importantly, the second task of this Chapter is then to review the current law and practice in the PRC in applying the CISG. It is proposed to deal with this task in two parts, i.e. the Application of the CISG in current PRC Law and the Application of the CISG in current PRC Arbitration Practice. In particular, about thirty cases and arbitral awards concerning the application of the CISG in Hong KongMacaoTaiwanrelated sales will be reviewed and discussed. Finally a conclusion will be drawn.