Is the de-localization theory one that should be used in China?
The de-localization theory basically leaves the parties to the arbitration greater freedom to decide the applicable rules. This also means that where the parties have not agreed on procedural or other issues Chinese law will not be able to supplement. Furthermore, use of this theory excludes supervision of awards by the courts where arbitration takes place, which in practice means that courts cannot intervene should there be a question of violation of the parties' agreement. Application of this theory may bring difficulties to the procedure and enforcement, thus it is not advisable to use it in China yet. However, China should embrace some aspects of the theory, as it would help bring the arbitration law better in line with international standards.
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