Are there limits on the types of damages that are available in arbitration (e.g., punitive damages)?
Generally speaking, under Chinese law, damages are meant to compensate actual or anticipated loss. Liquidated damages will be awarded if they are reasonable. What, if any, interest is available? There are no express rules in this regard. In practice, an arbitration tribunal would grant interest as part of compensation for loss suffered if it considers this appropriate. Are parties entitled to recover fees and/or costs and, if so, on what basis? What is the general practice with regard to shifting fees and costs between the parties? In practice, the rule “costs follow the event”, i.e. the losing party will pay costs (including arbitration fees) of the successful party, is generally followed although the tribunal retains discretion to apportion fees and costs depending on conduct of the parties and the outcome of the arbitration. For CIETAC arbitrations, Article 59 of the CIETAC Rules provides that compensation for expenses reasonably incurred by the winning party in dealing with the cas
