Learning & Education
Date of Award: 13 April 1935
On 10 November 1928, the Government of the Republic of China and the Radio Corporation of America concluded an agreement for the operation of a direct radio telegraphic circuit for commercial communications between China and USA. Some four years later, China concluded a similar agreement with another radio and telegraph company.
The Radio Corporation of America protested the latter agreement. It claimed that the agreement violated its earlier agreement with the Chinese Government and the dispute was subsequently submitted to arbitration.
The Arbitral Tribunal determined that the second agreement made by China did not constitute a violation of the earlier agreement made with the Radio Corporation of America, although the latter did enjoy a “privileged position”.
The Radio Corporation of America v. China case is particularly significant in that it extended the jurisdiction of the Permanent Court of Arbitration for the first time to include cases involving non-State parties.