Argentine arbitrator hails efficiency and openness of arbitration award enforcement in Shanghai
Alejo Fernandez Parral, from Argentina, serves as an arbitrator at the Shanghai International Arbitration Center and a mediator at the Shanghai Commercial Mediation Center. His working experience in Shanghai has given him profound insight into the city’s efficiency and professionalism in arbitration and follow-up enforcement by courts.
In his arbitration work, Fernandez frequently encounters claimants who are concerned about the enforcement of arbitral awards. He claimed that thanks to the property preservation and mandatory enforcement measures, the rights of claimants can be effectively safeguarded. This has strengthened his confidence in Shanghai’s arbitration and court enforcement environment, according to him.
In 2024, to further strengthen coordination between arbitration and enforcement and to guarantee the timely realization of the rights and interests of the winning parties, the Shanghai First Intermediate People’s Court signed a memorandum with the Shanghai International Arbitration Center and the Shanghai Arbitration Commission. This agreement details the collaboration mechanisms.
In one foreign-related arbitration case, the arbitral tribunal ruled that an intellectual property rights registration should be changed to a foreign company. However, the arbitration commission had not notified the foreign company to participate in the proceedings. Facing this situation, Fernandez, following the provisions of the memorandum, explained the matter to the judges of the Shanghai First Intermediate People’s Court. He noted that in arbitration, if a third party is not a party to the arbitration agreement, the arbitral tribunal typically cannot, on its own initiative, add them to the proceedings due to their intrinsic jurisdictional limitations. However, as the recipient of the rights, the third party’s absence from the arbitration process will not affect its rights and interests. This explanation was recognized and understood by the judges.
During the enforcement phase, the judges of the Shanghai First Intermediate People’s Court made efforts to contact the foreign company, considered its opinions, and facilitated the swift enforcement of the judgment in accordance with the law.
Through this process, Fernandez witnessed the close cooperation and information sharing between arbitration institutions and courts.
He emphasized the importance of work exchange and information sharing between arbitration institutions and courts as they all share the same goal of enhancing the enforceability of arbitration awards and the credibility of the arbitration system. He also acknowledged Shanghai’s efforts in this regard, which have provided a solid foundation for international arbitration development.
Today, Shanghai has become the city with the highest concentration of arbitration institutions in China and serves as a crucial gateway for international arbitration to reach China and for Chinese arbitration to reach the world. Fernandez said he believes that the city’s efficient coordination between arbitration and court enforcement, along with its open and collaborative approach, has created a world-class business environment. The "arbitration-friendly" environment has also attracted more international enterprises to choose Shanghai as a preferred arbitration and litigation venue.
As a foreign arbitrator, Fernandez is optimistic about Shanghai’s continued development. He affirmed to actively engage in strengthening the collaboration between arbitration and court enforcement in Shanghai and contribute to promoting the city as the preferred destination for international commercial disputes resolution.