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Shanghai Greenlights First-Ever Ad Hoc Arbitration in China

Fri, 05 Apr 2024
Categories: China Legal Trends

On 23 Nov. 2023, the Standing Committee of the Shanghai People’s Congress adopted the “Regulations on the Promotion of the Establishment of the International Commercial Arbitration Center in Shanghai” (上海市推进国际商事仲裁中心建设条例, hereinafter the “Regulations”).

Article 20 of the Regulations provides that:

  • Shanghai will explore the possibility of agreeing to conduct ad hoc arbitration in Shanghai for foreign-related matters in the commercial and maritime fields in accordance with specific arbitration rules and conducted by designated persons;
  • Ad hoc arbitration shall be conducted by following the principles of good faith, fairness, independence, and party autonomy. It shall not harm national interests, public interests, or the legitimate rights and interests of third parties and shall not violate mandatory provisions of laws and administrative regulations;
  • The specific rules for ad hoc arbitration shall be separately formulated by the Shanghai Municipal Bureau of Justice; and
  • Shanghai arbitration institutions and foreign arbitration service providers are encouraged to assist in forming panels and provide other services as agreed upon or requested by the parties.

In addition, the Regulations specifies that parties in arbitration proceedings may apply to the court for interim measures and evidence collection. For instance:

  • Before applying for arbitration and during the arbitration proceedings, parties may, in accordance with the law, apply to the court for property preservation, evidence preservation, and other measures to ensure the process of the arbitration, to ascertain disputed facts, or to enforce arbitral awards; and
  • In arbitration cases administered by Shanghai arbitration institutions or foreign arbitration service providers with the seat of arbitration in Shanghai, if the parties and their representatives are objectively unable to collect evidence on their own, and the arbitral tribunal finds it difficult to investigate and collect evidence, but it is necessary to do so and the evidence is located or can be collected in Shanghai, the courts in Shanghai may, upon the application of the arbitration institution, provide assistance.



Photo by Freeman Zhou on Unsplash

Contributors: CJO Staff Contributors Team

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