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Arbitration Procedure in China

Arbitration Procedure in China

Arbitration is a form of alternative dispute resolution (ADR) outside the legal courts. The parties in a dispute agree to be bound by the arbitration decision, while a third party reviews the evidence in the case and imposes a legally binding decision on both sides and enforceable in the courts. Our lawyers in China invite you to explore the following lines with information on this subject and also contact them if arbitration can be a solution to your business problems.

The validity of arbitration agreements under Chinese law

The People’s Republic of China Arbitration Law provides for the validity conditions of an arbitration agreement.The most important requirements in this matter are:

  • a description of the issues that will be arbitrated; 
  • a clear expression of the parties’ intention to submit disputes to an arbitration procedure;
  • the identification of the arbitration institution selected by the parties to administer arbitrations.

Assistance in foreign-administered disputes seated in China

There are special cases of disputes involving foreign-administered companies in China which fortunately can be resolved through arbitration. The most recent amendments to Arbitration Law in China state that arbitral awards issued in China are foreign, if administered by overseas institutions. Our arbitration lawyers in China can guide foreign entrepreneurs in varied commercial disputes and propose optimal solutions to close business-related issues implicating foreign entities.

We can assist in business contract disputes

The business field is quite competitive everywhere in the world, and China is no exception. Business disputes may arise for varied reasons, and in certain cases, commercial contracts can be infringed. Regardless of the reason for the commercial dispute, our arbitration lawyers in China can propose optimal resolution strategies, outside the court of law. We represent our clients in commercial contract disagreements and recommend solutions to resolve conflicts through arbitration in China. We advise you to consider seeking expert legal advice from our law firm in China to ensure that you have all the necessary support at hand in such a situation.

Cost-effective solutions with arbitration in China

It is well known that court proceedings where commercial disputes are resolved are quite expensive and in long-term. Based on this, it can be said that arbitration in China is cost-effective and can be an optimal solution for entrepreneurs who want to resolve their problems in a fast and less expensive manner. In other words, this ensures that our customers can obtain the proper arbitration resolution, with legal representation included, while preserving cost-effectiveness for arbitration cases in China.

Advantages and disadvantages of arbitration procedure in China

In general, arbitration has the following advantages over Chinese litigation:

  • Flexibility – Arbitration procedure is conducted on a basis agreed between the parties. They are therefore free to formulate a dispute resolution that suits their preferences/circumstances. Local Chinese arbitration that involves Chinese parties has a distinctly local character, such as non-adversarial hearings, no document production or negligible witness evidence.
  • An arbitration agreement which has been drafted well can include more familiar procedures for foreign parties and also incorporate international best practice. In comparison with the rigidity of Chinese court procedures, the arbitration procedure in China is more flexible.
  • Impartiality and transparency – If the proceedings take place outside the major commercial cities of China, foreign parties may be concerned over potential influence and bias in the Chinese courts. But it’s not the case, since the freedom to agree the terms of the arbitration procedure means that parties can ensure the appointment of an experienced and independent tribunal.

Statistics on arbitration in China

Here are some statistics on arbitration cases in China:

  • Over 16,000 arbitration-related cases were resolved in China in 2023.
  • Around 36,453 new arbitration cases were filed with the top 5 institutions/centers in China in the same year.

Apart from legal advice in arbitration cases, we assist in other legal matters too. You can explore our legal services offered by our divorce lawyers in China. You can also opt for our firm for trademark registration in China. Foreigners interested in immigration to China can benefit from our legal advice and guidance. It is also valid for foreign citizens interested in citizenship in China and related procedures. Please contact our Chinese lawyers and explore our legal services for the problems you encounter.