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The Arbitration law was firstly implemented in 1995. The recent revision process of the Arbitration Law started in 2024, which is a comprehensive and systematic amendment since its implementation, aiming to solve prominent issues occurring in arbitration practice nowadays such as incomplete internal governance structure of arbitration institutions, not sound supervision mechanism, and incomplete support and guarantee for arbitration etc.<\/p>\n<\/div>\n<\/div>\n
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Key content<\/span><\/strong><\/p>\n\n
The new Arbitration law consists of 8 chapters, 96 articles, mainly focuses on:\u00a0<\/span><\/p>\n <\/p>\n<\/div>\n
1) \u00a0 \u00a0 <\/strong>Enhanced efficiency of arbitration system<\/span><\/strong><\/p>\n* \u00a0Shortened the deadline for application for setting aside an arbitral award<\/span><\/strong><\/p>\nThe deadline for parties to apply for setting aside an arbitral award has been shortened from 6 months to 3 months, which will facilitate the process efficiency and encourage the parties to exercise their rights.<\/span><\/p>\n* \u00a0Added Online arbitration<\/strong><\/span><\/p>\nThe new Arbitration law establishes online arbitration system, it is explicitly prescribed that arbitration activities can be conducted online through information networks, except where the parties explicitly express their disagreement. Additionally, the Arbitration law addressed that activities conducted online through information networks have the same legal effect as offline arbitration activities.<\/span><\/p>\n\n
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* \u00a0Broadened Arbitrators\u2019 qualifications<\/strong><\/span><\/p>\nArbitrators\u2019 qualifications are broadened in the new Arbitration law, in addition to experts in traditional legal, economic and trade fields, it is explicitly prescribed that “prosecutors” and “those who possess legal knowledge, engage in professional work in law, economic and trade, maritime commerce, science and technology, and have senior professional titles or equivalent professional levels” are included in the scope of qualification of arbitrators.<\/span><\/p>\nAdditionally, it is the first time that the Arbitration law has explicitly allowed “foreign individuals with specialized knowledge in law, economic trade, maritime commerce, science and technology” to serve as arbitrators.<\/span><\/p>\n <\/p>\n<\/div>\n<\/div>\n
2) \u00a0 \u00a0 <\/strong>New developments for arbitration agreements<\/span><\/strong><\/p>\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Expanded the Separability principle in arbitration agreements<\/span><\/strong><\/p>\nSeparability principle is one of the basic principles in international arbitration, which refers to arbitration agreement exists independently, and the revision, termination, or invalidity of the contract does not affect the validity of the arbitration agreement. The new Arbitration law further expanded the range of Separability principle:<\/span><\/p>\nThe arbitration agreement shall exist independently. The establishment and revision, ineffectiveness, termination, rescission or invalidity of the<\/span> contract shall not affect the validity of the arbitration agreement already reached. <\/span>The arbitral tribunal shall have the authority to affirm the validity of a contract.<\/p>\n\n
The highlight is that whether the agreement is established will not affect the validity of the arbitration agreement already reached by the parties, which expanded the scope of Separability principle.<\/span><\/p>\n<\/div>\n <\/p>\n
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\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Extended the form of arbitration agreement<\/span><\/strong><\/p>\n\n
In the prior practice in China, arbitration agreements shall be concluded in written. The new Arbitration law added that where one party claims the existence of an arbitration agreement when applying for arbitration, and the other party does not deny it before the first hearing, upon the reminder and the record of the arbitral tribunal, it shall be deemed that an arbitration agreement exists between the parties. This means the acceptance of arbitration agreements concluded in the implied form.<\/span><\/p>\n <\/p>\n<\/div>\n<\/div>\n
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3) \u00a0 \u00a0 <\/strong>Foreign related arbitration system<\/span><\/strong><\/p>\n(1) Seat of Arbitration<\/span><\/strong><\/p>\nThe parties may agree in writing on the seat of arbitration. Unless otherwise agreed by the parties regarding the applicable law of the arbitration procedure, the seat of arbitration shall be the basis for determining the applicable law of the arbitration procedure and the court with jurisdiction. The arbitral award shall be deemed to be rendered at the seat of arbitration.<\/p>\n
The rules for determining the seat of arbitration are as well established:<\/p>\n
– \u00a0 \u00a0Where the parties have not agreed or have agreed unclearly on the seat of arbitration, the seat of arbitration shall be determined in accordance with the arbitration rules agreed by the parties;<\/p>\n
– \u00a0 \u00a0 Where the arbitration rules have no provisions, the arbitral tribunal shall determine the seat of arbitration based on the circumstances of the case and in accordance with the principle of facilitating the resolution of the dispute.<\/span><\/p>\n<\/div>\n <\/p>\n
\u00a0 \u00a0(2) Ad Hoc Arbitration<\/span><\/strong><\/div>\n <\/p>\n
The current Arbitration law lacks provisions on the Ad Hoc arbitration system. The new amendment adopts the Ad Hoc arbitration system to be implemented partially for specific types of arbitration such as foreign maritime disputes, disputes between free trade zone enterprises and Hainan Free Trade Port enterprises, and disputes between enterprises established and registered in other regions prescribed by the state.<\/span><\/p>\nFor abovementioned disputes, if the parties agree in writing to arbitrate, they may choose to have the arbitration institution conduct it; Alternatively, the parties can choose China as the place of arbitration, and the arbitration tribunal shall be composed of personnel who meet the conditions stipulated at the agreed place within the territory of China and shall conduct the arbitration in accordance with the agreed arbitration rules.<\/span><\/p>\nIt is the first time that China has adopted Ad Hoc Arbitration system, which will facilitate parties in solving the dispute more flexibly in certain specific types of disputes.<\/span><\/p>\nThe Draft Regulations clarify that commercial mediators shall meet one of the following conditions:<\/p>\n
1. Obtained legal professional qualification through the national unified legal professional qualification examination and engaged in commercial mediation work for at least 3 years;<\/p>\n
2. Engaged in legal, arbitration, notarization work or served as a judge or prosecutor for at least 3 years;<\/p>\n
3. Having relevant professional knowledge in law, economics, science and technology, engaged in legal or economic trade work, and possessing intermediate or higher professional titles or equivalent professional levels;<\/p>\n
4. Engaged in commercial mediation work for at least 3 years and holding a bachelor’s degree or above before the implementation of this regulation.<\/p>\n
Public officials who also serve as commercial mediators shall comply with relevant regulations.<\/p>\n
It is worth noting that commercial mediators shall participate in training in accordance with relevant regulations.<\/span><\/p>\n <\/p>\n
Conclusion<\/strong><\/p>\n\n
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The release of the new Arbitration law is in alignment with the development of international commercial arbitration practices, aiming to further boost efficiency and flexibility in arbitration proceedings. The provisions of the new Arbitration law provide more efficient, convenient, and fair dispute resolution channels for parties to better solve the commercial disputes through arbitration proceedings, additionally will also attract foreign investors to make investments in China under fairer and more convenient legal environment.<\/span><\/div>\n<\/div>\n<\/div>\n[\/vc_column_text][vc_separator type=”transparent” thickness=”10″ up=”10″ down=”10″][vc_separator type=”transparent” thickness=”10″ up=”10″ down=”10″][vc_separator type=”transparent” thickness=”10″ up=”10″ down=”10″][vc_column_text]<\/p>\n