In the case of Application for Determining the Validity of an Arbitration Agreement between Claimant Zhejiang Asroad Highway Construction & Maintenance Machinery Co., Ltd. and Respondent Jilin Shengbo Road and Bridge Construction Co., Ltd. , the parties agreed that “the method to resolve contractual disputes is through friendly negotiation; if negotiation fails, arbitration shall be conducted in the local arbitration commission.”

Since the contract was signed and performed in Siping Municipality, Jilin Province, and there was no other arbitration commission in the place besides the Siping Arbitration Commission, the “local arbitration commission” should be interpreted as Siping Arbitration Commission, and the arbitration clause should be deemed valid.