A Chaotic Clash: Legal Basis and Attitudes towards the Arbitration Used and Coordinated in Insolvency Proceedings

With the normalization of Covid-19 situation and geopolitical changes in the past years, transnational or national insolvency become more frequent. As a useful tool for international commercial disputes resolution, arbitration happens more often than ever, especially when a insolvency application has already been submitted. While there already exists a plenty of discussions on the clash and effects of arbitration and insolvency, how to coordinate the two important mechanisms in commercial legal practice is still a critical issue and changing in legislation and practice. Otherwise, as a part of mandatory regulation for public interests in a nation, insolvency seems to have more power and be more systematic than arbitration, which is of autonomy and more about international law that is fragmented in its instinct as any other international laws. This paper will start from the clash of arbitration and insolvency, but mainly focus on analyzing the legal basis and attitudes towards the use of arbitration in some different types of jurisdiction, such as common law, Chinese law and the EU law. After that, it will turn to discuss a potential way to harmonize the clash above and achieve balance.