The newly revised Arbitration Law offers arbitrators greater autonomy and control, but will also lift the standards of practitioners in a bid to bring the sector up to an international level.
The revised law, which passed on 12 September, will also give arbitrators time to adjust to greater expectations, as the update will take effect on 1 March 2026.
Zhao Feng, secretary-general of the Shenzhen Court of International Arbitration (SCIA), said this was the first comprehensive revision in 30 years, since the implementation of the Arbitration Law in 1995, and predicted it would have a significant impact on the development of China’s international arbitration sector.
“The new Arbitration Law grants arbitrators a higher degree of control over arbitration proceedings,” said Zhao. “With greater power comes greater responsibility. In fact, the new Arbitration Law poses higher standards for arbitrators’ capabilities.”
The revised Arbitration Law consists of eight chapters and 96 articles, an increase of 16 articles from the previous version, which was passed in 2017. These additions enhance the powers that arbitrators hold as part of the arbitral tribunal.
With respect to tribunals, article 61 empowers the arbitral tribunal to dismiss sham arbitrations, while article 81 stipulates that if parties have not agreed on the seat of arbitration, and the arbitration rules do not specify, the tribunal may determine the seat of arbitration based on the principle of convenience.
The amended law also imposes stricter rules on arbitrators, including the duty to disclose, requiring arbitrators to make a written disclosure to the arbitration institution if they face circumstances that may affect their independence or impartiality.
In terms of commercial experience, both mainland and foreign arbitrators should possess knowledge in fields such as law, economics and trade, maritime, or science and technology, according to article 22.
The new law is expected to affect more than 60,000 arbitrators and 286 arbitration institutions in China.
Zhao suggested that arbitrators should familiarise themselves with the new provisions as soon as possible and establish the awareness that “arbitrators are the primary persons responsible for arbitration proceedings”.
In order to build China into a preferred destination for international commercial arbitration, the revision has broadened the scope of the law that regulates foreign-related arbitrations, with the relevant provisions including recognising foreign-related maritime ad hoc arbitrations and welcoming overseas arbitration institutions to set up a branch in China, outlined in chapter 7.
For the first time, the law formally establishes an ad hoc arbitration system – a form of arbitration where the parties and the arbitrators determine the procedure without the involvement of an arbitral centre – under article 82 in chapter 7.
According to article 82, parties in foreign-related maritime disputes and disputes among companies established in areas such as Hainan Free Trade Port can choose ad hoc arbitration. Three days after the arbitral tribunal is formed, the tribunal shall inform the Association of Chinese Arbitration about the parties’ names, the seat of arbitration, the composition of the arbitral tribunal and the arbitration rules.
The latest revision in chapter 7 also encourages Chinese arbitration institutions to set up branches and conduct activities abroad.
Zhao said the SCIA would seize the opportunities that had been opened through the new amendment, and revise the SCIA Arbitration Rules and the South China International Arbitration Centre (Hong Kong) Arbitration Rules as required.
“The SCIA will continue to improve efficiency in arbitration and reduce the cost of dispute resolution for parties, and explore targeted services for ad hoc arbitration,” she said.
