Entry into Force of an Arbitration Award and a Conciliation Statement

As an arbitration award is final and binding on both disputing parties, it takes effect once it is made. Each party must abide by the award unless the award is vacated by an intermediate people's court of competent jurisdiction upon the petition of either party which has evidence to prove certain circumstances (See http://www.shanghailawfirm.net/international_arbitration/arbitration_procedures/show-2420.html).

A conciliation statement is prepared based on the settlement agreement reached by the parties during the course of arbitration, and becomes legally effective only upon service on and signature by both parties. This means that either party may reneges on the conciliation statement before signing it upon receipt, in which case the conciliation statement becomes invalid and the arbitral tribunal must make an award in a timely manner.