Application of the Unidroit Principles in China: Successes, Shortcomings and Implications

Abstract

The purpose of this Article is to explore application of the Principles in China, based on the comparative study of relevant Chinese law provisions and case study of the reported judicial and arbitral practices. The Article firstly summarizes several situations where the Principles may be applied as suggested by their preamble (Part II). It then discusses the impacts of the Principles on Chinese contract law and application of the Principles in China by legislative practices (Part III), party autonomy (Part IV), judicial practices (Part V) and arbitral practices (Part VI) respectively. In the conclusion part (Part VII), the Article observes that, despite the achievements Chinese contract law has made, there still exist various restrictions on application of the Principles in China, which calls for timely improvement of relevant Chinese laws and practices, particularly a more autonomous arbitration regime.