China Justice Observer

中司观察

EnglishArabicChinese (Simplified)DutchFrenchGermanHindiItalianJapaneseKoreanPortugueseRussianSpanishSwedishHebrewIndonesianVietnameseThaiTurkishMalay

China Seeks Public Comments on the Arbitration Law Amendment

Wed, 01 Sep 2021
Categories: China Legal Trends

On 30 July 2021, China’s Ministry of Justice released the proposed “Arbitration Law of the People’s Republic of China (Revision) (Draft for Public Comment) (hereinafter referred to as the “Revised Draft”, 中华人民共和国仲裁法(修订)(征求意见稿)), which has made significant changes to the existing Arbitration Law. The extensive changes aim to facilitate China’s arbitration regime to be more in line with international practice.

The Revised Draft makes ground-breaking changes for the following aspects.

Firstly, the scope of arbitration will be expanded. Article 2 of the Arbitration Law (2017) stipulates that “contractual disputes and other disputes over property rights and interests between citizens, legal persons, and other organizations of equal status may be arbitrated”. The Revised Draft deletes the phrase, “of equal status” as required in the Arbitration Law (2017), and narrows the scope of “administrative disputes to be handled by administrative organs” which cannot be arbitrated from “according to the legislation” to “according to laws”, specifically referring to laws enacted by the National People's Congress and its Standing Committee. Such revision enables the arbitration in investment and sports disputes in China.

Secondly, the ad hoc arbitration regime is provided in Chapter VII, Special Provisions on Foreign-related Arbitration, allowing foreign-related arbitration cases to be settled by ad hoc arbitral tribunals.

Thirdly, the autonomy of will of the parties is prioritized in terms of the conditions for an arbitration agreement to take effect and the seat of arbitration. With regard to the conditions required for an arbitration agreement to take effect, the Revised Draft only requires the parties to “express their intention to apply for arbitration” and no longer requires the parties to agree on the “matters submitted to arbitration” and the “selected arbitration commissions”.

Fourthly, in response to the arbitration needs during the COVID 19 epidemic, arbitration proceedings can be conducted online.

Fifthly, it is to unify the standards for judicial review of domestic and foreign-related arbitration awards, shortening the period of application for setting aside arbitral awards from six months to three months and removing the provision of non-enforcement of arbitral awards upon application by the parties concerned.

 

 

Cover Photo by Scot Cris (https://unsplash.com/@scotcris) on Unsplash

Contributors: CJO Staff Contributors Team

Save as PDF

Related laws on China Laws Portal

You might also like

SPC Publishes Typical Cases on Public Security Crimes

In April 2024, China's Supreme People's Court (SPC) released five typical cases illustrating crimes against public security, emphasizing clarifications on trial criteria and sentencing principles, featuring a case involving serious injuries from objects thrown off a high-rise building.

Beijing Court Upholds Workers' Right to Offline Rest

The Beijing No. 3 Intermediate People's Court ruled that workers are entitled to overtime pay for “invisible overtime work” conducted via social media outside of working hours, protecting their right to “offline rest”.

China Revises State Secrets Protection Law

China’s national legislature, the National People’s Congress, revised the State Secrets Protection Law to enhance information classification, secrecy in technological innovation, and precise protection of state secrets, effective May 1, 2024.