Selected Papers of The Jurist (法学家), Volume 2
Edited by Jichun Shi
Chapter 12: On China's withdrawal of its reservation to CISG Article 1(b)
It has been 25 years since the United Nations Convention on Contracts for the International Sale of Goods (CISG) came into effect in China. During these years, the CISG has been an important applicable law and business criterion universally accepted by law practitioners governing disputes over foreign-related contracts of sale. China acceded to the CISG with reservations to Article 1(b) and Article 11 as permitted by Article 95 and Article 96. The latter reservation has just been withdrawn. The former reservation that opts out of Article 1(b) restricts to a large extent the application of CISG. It forms a situation in China where most cases of foreign-related contracts for the sale of goods are governed by the Contract Law of the People's Republic of China ('China Contract Law', or 'CCL'). Comparatively fewer numbers of cases are governed by CISG. Given the dramatic increase of China's import-export trade, maintenance of this reservation has progressively revealed its adverse effect on the Chinese foreign-related commercial law system. Limitations on the application of CISG are also not beneficial to fairly settling disputes over international sale contracts.
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