CHINA (PRC FIRMS): An Introduction to Dispute Resolution (PRC Firms)

Evolvement and Innovation of China's Dispute Resolution Market

中国争议解决市场的变化与创新

China's dispute resolution market had a booming year with increasing demands in 2021. Courts in major cities in China reported a high growth of nearly 10% in the number of the cases filed, which indicates that dispute resolution lawyers continue to be in high demand. On the other hand, the implementation of the unified civil code and the associated new judicial interpretations set higher requirements for lawyers practising in this industry. While paying attention to the increased awareness of rules in local legal practice, dispute resolution lawyers are learning to cope with the profound legislative and practical changes in the profession.

中国争议解决市场在2021年依然不断迸发出新的需求。中国各个主要城市法院的受案率依然呈现了近10%的高增长态势，这也意味着对争议解决律师的持续高需求。而另一面，统一《民法典》的施行和随之而来的新司法解释对身处这个行业的律师提出了更高的要求。在关注法律实践中更为尊重规则意识的同时，中国的争议解决律师也在持续学习应对行业中立法和实践深刻的变化。

New Rules, New Learning 

新的规则、新的学习 

On January 1, 2021, the Civil Code of the People's Republic of China officially came into force. The new Civil Code not only unifies the civil legal system, but also has triggered the promulgation of numerous related judicial interpretations. According to statistics, the total number of judicial interpretations promulgated in China in 2020 and 2021 were 503 and 440 respectively, nearly doubling that of the same period in history. New legal rules have reduced some previous ambiguity of law in major areas of Civil Law, such as those relating to guarantee system, standard terms of contracts, circumstances altering, etc., which is of milestone significance.

2021年1月1日《中华人民共和国民法典》正式施行，新《民法典》不仅统一了中国的民事法律体系，也触发了大量相关司法解释的推出。据统计，2020年和2021年中国颁布施行的司法解释总数分别为503件和440件，较历史同期增长近一倍。在民法的重大领域，如担保制度、合同格式条款、情势变更等领域，新的法律规对以往一些问题作出了厘清，具有里程碑意义。

In light of such major legislative changes, all Chinese dispute resolution lawyers are back to the same starting line. To master the new rules as soon as possible, the learning ability of local dispute resolution lawyers has been tested. New perspectives originated by the differences between new and old rules could be observed everywhere, not only in the emerging field of financial litigation, but also in the more traditional areas such as the scope of construction or distribution agreements. In the process of resolving these disputes, dispute resolution lawyers who are familiar with and grasp well the new rules clearly have the advantage.

在2021年，所有的中国争议解决律师回到了同一条起跑线，尽快掌握新的规则对争议解决律师的学习能力提出了更高的要求。无论是新兴的金融诉讼领域，还是更为传统的建筑施工、经销协议范畴，都能观测到新旧规则的冲突带来的新争议解决视角。而在解决这些争议的过程中，那些对于新规则熟练掌握的争议解决律师无疑获得了优势。

Innovative and Open  

鼓励创新、更为开放 

The vitality of the legal industry lies in its focus on practical problems and creative solutions to them. In 2021, dispute resolution lawyers continue to offer new and creative ideas. China's judicial practice has maintained an open attitude towards new transaction models and dispute solutions.

法律行业的生命力在于对现实问题的关注和创造性解决。2021年度，在争议解决律师中不断涌现新的创意。对于新的交易模式和解决方案，中国的司法实践层面保持了更为开发的态度。

Among non-foreign-related cases, financial litigation, especially cases of securities misrepresentation, are worthy of attention. For example, the Kangmei Case, which is the first special representative litigation, and Zhongan Ke Case, of which the judgment focuses on the responsibility of intermediaries, are both key precedents of great significance. In a case regarding misrepresentation that my team acted on, the multi-factor quantitative model was applied for the first time to assess the losses of an investor. This model was finally recognised by the court, and later the court identified the case as an exemplary precedent.

在非涉外案件中，金融诉讼，尤其是证券虚假陈述案件值得关注。康美药业案作为第一起特殊代表人诉讼，中安科案对中介机构责任的判决，都有其特殊意义。在笔者所代理的一起虚假陈述案件中，也首次适用了“多因子量化模型”以核定投资人的损失，此种模型最终得到法院的认可，该案亦被确定为示范案例。

In cases involving foreign interests, the judicial practice tends to be more open. In a case that my team acted on, we represented a foreign investor to apply for the recognition and enforcement of a favourable arbitral award in respect of "keepwell agreement" before a Chinese court. This was the first cross-jurisdictional judicial determination for this kind of agreement in China. Finally, the court supported the enforcement application filed by us on behalf of the client.

在涉外案件中，司法实践更趋于开放，在笔者代理的一起承认与执行仲裁案件中，笔者代表外国投资者就涉及协议中“维好协议”的胜诉裁决，向中国法院申请承认与执行。这是中国首例跨法域“维好协议”司法认定的案件，最终法院支持了笔者代表客户所提出执行请求。

Lawyers and Market Participants Need to Continue to Learn to Adapt to the Changing Environment

律师与市场主体需要持续学习以适应变化的环境 

Judging by the time of existence, the Chinese dispute resolution market is still an emerging one. In the past few years, the increasing types of transaction models and the rapid economic development have rendered more legislations and rules enacted and applied in the commercial dispute sphere.

从存在的时间来看，中国争议解决市场依然是一个新兴的市场。在过去的数年时间中，随着交易模式地不断丰富以及经济的快速发展，使得商事领域中更多的规则被创造和应用。

Therefore, it is necessary for dispute resolution lawyers to keep a learning attitude and a craftsman's spirit in order to creatively take care of clients' pain points. Meanwhile, we recommend clients investing into or operating in the Chinese market to keep abreast of the changes in local dispute resolution market, so that they could better safeguard their legitimate rights and interests.

因此，对于争议解决律师而言，需要在规则不断变化市场中保持学习态度，保持工匠精神，以创造性地方案解决客户的痛点。同时，我们也建议投身中国经济市场的客户，能随时与保持对争议解决市场的关注，在不断变化地规则中，更好地维护自身的合法权益。