Core Viewpoint - The newly revised Arbitration Law of the People's Republic of China, effective from March 1, 2026, significantly expands the scope of foreign-related arbitration and supports the internationalization of arbitration institutions, marking a major reform since the 1994 Arbitration Law [1][4]. Summary by Sections Arbitration Law Revision - The revised Arbitration Law includes 96 articles, an increase of 16 articles compared to the previous version, and aims to enhance the credibility and international competitiveness of China's arbitration system [4][6]. - The law supports the establishment of business institutions by Chinese arbitration organizations abroad and allows foreign arbitration institutions to set up in designated free trade zones [1][4]. Scope and Impact - The new law broadens the range of foreign-related arbitration cases, covering economic trade, transportation, maritime disputes, and other foreign-related issues, which is a significant expansion from the 1994 law [1][6]. - Data shows that in the past five years, Chinese arbitration institutions handled approximately 16,000 foreign-related arbitration cases with a total amount of about 730 billion yuan, indicating China's growing role as a preferred destination for international commercial arbitration [1][3]. Institutional Development - As of August 2025, there are 285 legally established arbitration committees in China, which have processed over 5 million arbitration cases involving more than 90 trillion yuan, serving various sectors including finance, e-commerce, and intellectual property [3][4]. - The revised law emphasizes the need for a governance structure within arbitration institutions and sets standards for the appointment and supervision of arbitrators [7]. Innovation and Technology - The new law introduces provisions for online arbitration, ensuring that online arbitration has the same legal effect as traditional arbitration, thus adapting to technological advancements [7]. - It also includes measures to prevent fraudulent arbitration and streamline the arbitration process, such as shortening the time frame for applying to revoke arbitration [7].

General Principles - The law aims to ensure fair and timely arbitration of economic disputes, protect the legitimate rights and interests of parties, and promote the healthy development of the socialist market economy [3] - The development of arbitration services aligns with the policies and decisions of the Communist Party and the state, serving high-quality development and high-level opening-up [3] - Disputes arising between equal subjects, including natural persons, legal persons, and unincorporated organizations, can be arbitrated, except for certain types of disputes such as marriage and administrative disputes [3] Arbitration Institutions and Personnel - Arbitration institutions can be established in municipalities and provincial capitals, and they are non-profit entities organized by local governments and chambers of commerce [14][15] - Arbitration institutions must meet specific criteria, including having a name, necessary assets, qualified personnel, and appointed arbitrators [18] - The composition of arbitration institutions includes a director, deputy directors, and members, with a majority being experts in law, economics, and technology [22] Arbitration Agreements - An arbitration agreement can be included in a contract or reached in writing before or after a dispute arises [34] - The agreement must specify the intention to arbitrate, the arbitration matters, and the chosen arbitration institution [35] - An arbitration agreement is invalid if it exceeds the legal scope, is made by individuals without civil capacity, or is made under coercion [36] Arbitration Procedures - Parties must submit a valid arbitration agreement and specific requests to initiate arbitration [40] - The arbitration application must include detailed information about the parties, the arbitration request, and supporting evidence [42] - The arbitration process is confidential unless the parties agree otherwise, and hearings must be conducted unless waived by the parties [48] Awards and Enforcement - Arbitration awards are final and binding, and parties must comply with them; non-compliance allows the other party to seek enforcement through the courts [75] - Courts may refuse to enforce an award if it violates public interest or if there are procedural irregularities [76][77] - The law provides for the possibility of appealing an arbitration award under specific circumstances, such as lack of an arbitration agreement or procedural violations [62][63] International Arbitration - The law includes provisions for international arbitration, allowing parties to choose arbitration institutions and rules, and it emphasizes cooperation with foreign arbitration bodies [12][78] - In cases of international disputes, parties can apply for evidence preservation through local courts, which must act promptly [79] - The law encourages the selection of Chinese arbitration institutions and designating China as the arbitration venue for international disputes [87]

Core Viewpoint - The revision of the Arbitration Law aims to enhance the online arbitration system, broaden the scope of special arbitration, and improve the supporting systems for arbitration, reflecting the need for adaptation to the evolving economic landscape and international commercial disputes [2][3]. Group 1: Legislative Process - The third draft of the Arbitration Law revision is scheduled for review during the 17th meeting of the 14th National People's Congress Standing Committee from September 8 to 12, 2023 [2]. - This revision marks a significant update after 30 years of the Arbitration Law's implementation, addressing issues such as the lack of foreign-related systems and inadequate regulatory frameworks [2]. Group 2: Public and Representative Feedback - During the public consultation for the second draft, 1,101 opinions were received from 284 individuals, indicating strong public engagement and the need for improvements in foreign-related arbitration and arbitration supervision [3]. - Suggestions from representatives included enhancing the legal framework for international commercial arbitration and improving arbitration supervision mechanisms [3][4]. Group 3: Supervision and Transparency - There is a call for clearer definitions of the scope of arbitration supervision, including the roles and responsibilities of judicial authorities and industry associations [4]. - The proposed revisions aim to establish a structured supervision process, ensuring that arbitration activities are conducted under strict legal oversight to enhance fairness and credibility [4].

Group 1 - As of now, there are 285 arbitration institutions in China and over 60,000 arbitrators, including more than 3,400 foreign arbitrators [1] - In 2024, 4,373 foreign-related arbitration cases are expected to be handled, with a foreign-related amount of 197.8 billion yuan, contributing positively to international economic and trade exchanges [1] - The development of arbitration services supports high-quality economic development and high-level opening up [1]