This notice stipulated that in cases involving the validity of arbitration agreements with foreign elements, the enforcement of arbitral awards with foreign elements, and the recognition and enforcement of foreign arbitral awards, an intermediate people’s court must report to the higher people’s court in the place where the it is located whenever it is about to deny the validity, refuse the recognition, or to refuse the enforcement.

If the higher people’s court agrees to such denial of validity, non-recognition and/or non-enforcement decision, it shall report its opinion to the SPC. The establishment of such internal reporting system is to ensure unifying judgment standards and correct application of international treaty obligations.