Core Viewpoint - The revised arbitration law, effective from March 1, 2026, aims to align with international standards and address the evolving needs of China's economy and foreign trade [1] Group 1: Key Changes in Arbitration Law - The new arbitration law consists of eight chapters and ninety-six articles, focusing on enhancing the foreign-related arbitration system and internal governance of arbitration institutions [1] - The law expands the scope of foreign-related arbitration cases and introduces a system for arbitration venues, promoting international cooperation among arbitration institutions [2] - A significant addition is the provision for "temporary arbitration," allowing parties to select arbitrators outside of established arbitration institutions for specific foreign-related disputes [2][3] Group 2: Challenges in Implementation - Experts express concerns about the varying levels of arbitration institutions across different regions, which may hinder the effective implementation of the new temporary arbitration system [3] - The disparity in service capabilities and the understanding of arbitration among local courts could pose challenges for the new regulations to take root in less developed areas [3][4] Group 3: Strengthening Arbitration Institutions - As of August 2025, there are 285 legally established arbitration institutions in China, but there are significant differences in their operational capabilities and the quality of arbitrators [4] - The revised law addresses internal governance issues within arbitration institutions, emphasizing the need for improved supervision and transparency [5] Group 4: External Supervision and Support - The new law introduces external administrative supervision, allowing the Ministry of Justice to guide and oversee arbitration work, which has raised concerns about potential administrative interference [6] - The law enhances the support from people's courts regarding preservation and evidence collection, ensuring timely processing of applications related to arbitration [7][8]

Core Viewpoint - The revision of the arbitration law in China is progressing, addressing the need for improvement in arbitration institutions and the quality of arbitrators, as well as introducing regulations to combat false arbitration and enhance international cooperation in arbitration [1][3][8] Summary by Sections Current State of Arbitration Institutions - China has nearly 300 arbitration institutions, with significant disparities in case handling capabilities and the quality of arbitrators across different regions [1][3] - Many arbitration institutions handle a limited number of cases, leading to an imbalance in their operations [1][3] Revision of Arbitration Law - The first revision of the arbitration law in 30 years is underway, with the second draft open for public consultation after review by the National People's Congress Standing Committee [1][3] - The first draft introduced changes to foreign-related arbitration systems, internal governance of arbitration committees, and management of arbitrators [1][3] - The second draft adds provisions to support international cooperation in arbitration and regulates false arbitration [1][3] Internal Governance of Arbitration Institutions - The first draft defined arbitration institutions as public welfare non-profit entities, promoting their independence and alignment with international practices [3] - The second draft includes requirements for the term and rotation of arbitration committee members, mandating a five-year term with at least one-third of members replaced upon re-election [3][4] Concerns Over Administrative Oversight - The introduction of external administrative oversight in the first draft has sparked debate, with concerns about potential direct interference in case handling by judicial administrative departments [2][6][7] - The second draft modifies the language regarding oversight to alleviate fears of administrative intervention, suggesting a focus on planning and guidance instead [6][7] Need for Professionalism and Independence - There is a consensus among industry experts that ensuring the independence and professionalism of arbitrators is crucial, advocating for the appointment of independent legal and technical experts [4][7] - The second draft stipulates conditions under which arbitrators can be disqualified, emphasizing the need for clear criteria to ensure the integrity of arbitration [4][6] Broader Implications for Arbitration - The revision of the arbitration law is seen as a necessary step to enhance the credibility of arbitration in China, particularly in light of the varying levels of arbitration quality across different regions [7][8] - The integration of arbitration into grassroots governance and the handling of civil disputes is highlighted as a significant development, expanding the scope of arbitration beyond commercial cases [8]