Originally from Business Disputes In China - 3rd Edition

While there are some features which make arbitration in mainland China unique, parties involved in China-related commercial transactions often agree to arbitrate in Shanghai or Beijing. A different regime applies in Hong Kong, which is also a popular venue for China-related arbitration.

China’s Arbitration Law

Arbitration in mainland China is regulated primarily by the Arbitration Law of the People’s Republic of China (1994). Some aspects such as the role of the people’s courts in granting interim relief, procedures for setting aside awards rendered in China and for recognizing and enforcing foreign awards are provided in the Civil Procedure Law of the People’s Republic of China (2007) (and in the Special Maritime Procedure Law of the People’s Republic of China (1999) for maritime arbitrations).

A degree of clarification is also found in Chinese secondary law in the form of interpretations and other instruments issued by the Supreme People’s Court. To a much lesser extent guidance can be found in Chinese case law. In addition, China is a signatory of both the ICSID Convention and the New York Convention.

Finally, the special role of Hong Kong as a regional arbitration centre is reflected by the Arrangement Concerning the Mutual Enforcement of Arbitration Awards Between the Mainland and the Hong Kong Special Administrative Region (1999).

The following are some of the unique features of arbitration in China: