The revised arbitration law for People’s Republic of China has came into effect on 1 March 2026. It has been approved by the Standing Committee of the National People’s Congress. This is the first time such significant change has been made to the law since it’s introduction in 1995.
The amended law keeps the basic conditions, for an arbitration agreement to be valid, mostly the same. For an agreement to be considered valid, it must be in writing, it must be specific as to the matters to be referred to arbitration, it must portray the intent of the parties to resolve any dispute through arbitration, and it must clearly specify the arbitral institution, which will administer the process.
The changes made also allow the use of ad hoc arbitration, to a certain limit, in China. This mode of dispute resolution is available only in two kinds of situations. First being when the disputes are related to international maritime matters. Second, in case of the foreign disputes, as to the companies operating in the pilot free trade zones in China. In most cases, parties have to choose an arbitral institution to look over the process.
This law also throw some light as to the time duration when it comes to objections against an arbitration agreement. Any challenge as to the validity or the existence of the agreement should be made, before the tribunal’s first hearing takes place. The final say would be of the court in case both the court and the tribunal are asked to address the issue.
For international arbitrations, the place which is chosen for the arbitration will determine the procedural law applicable and the supervising court. However, when it comes to the interim measures, the Chinese courts would be dealing with the same rather than the arbitral tribunals.
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