An arbitral award by the Shenzhen Court of International Arbitration (SCIA) was recently recognized and enforced by the U.S. District Court for the Northern District of Texas.

The case involved two U.S. companies (based in California and Texas respectively). The claimant initiated arbitration against the respondent at the SCIA, seeking payment of outstanding goods and contractual interest. Following proper service under the SCIA Arbitration Rules, the respondent neither submitted a defence nor appeared at the hearing. The sole arbitrator, Liu Jing from Hong Kong SAR, proceeded with a hearing and issued an award ordering the respondent to pay the outstanding sums.

After the respondent failed to comply, the claimant applied to the U.S. court for recognition and enforcement under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention). The U.S. court found that the SCIA proceedings fully complied with the New York Convention, there were no procedural defects or violations of U.S. public policy, and the respondent, having received full notice, voluntarily waived its right to participate. The court concluded that the SCIA arbitration was fair, valid, and binding, granting full enforcement.

Reflecting on the significance of the case, Mr. Liu Jing, the Hong Kong arbitrator who presided over the matter, commented: "Two American companies chose a Chinese international arbitration institution and Shenzhen as the seat of arbitration to resolve their dispute, and the arbitral award was recognized and enforced by a U.S. court under the New York Convention. It demonstrates the growing appeal of Chinese arbitration for international commercial parties and the credibility of SCIA."

According to the 2025 International Arbitration Survey by Queen Mary University of London and White & Case LLP, Shenzhen was ranked among the world's top 5 most preferred arbitration seats, and the arbitration rules of the SCIA were listed among the top 10 most popular arbitration rules worldwide.