Arbitration Law of the People's Republic of China

Arbitration Law of the People's Republic of China

Order of the President [1994] No.31

August 31, 1994

Adopted at the 9th Session of the Standing Committee of the 8th National People's Congress on August 31, 1994 and promulgated by the Order of President of the People's Republic of China [1994] No. 31

Contents
Chapter I General Provisions
Chapter II Arbitration Commission and Arbitration Association
Chapter III Arbitration Agreement
Chapter IV Arbitration Procedure
Section 1 Application and Acceptance
Section 2 Composition of the Arbitral Tribunal
Section 3 Hearing and Arbitral Awards
Chapter V Application for Cancellation of an Award
Chapter VI Enforcement
Chapter VII Special Provisions on Foreign-Related Arbitration
Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is formulated in order to ensure fair and timely arbitration of economic disputes, protect the legitimate rights and interests of the relevant parties and guarantee the sound development of the socialist market economy.

Article 2 Contractual disputes and other disputes arising from property rights and interests between citizens, legal persons and other organizations of equal status in law may be submitted for arbitration.

Article 3 The following disputes shall not be submitted for arbitration:
1. disputes over marriage, adoption, guardianship, child maintenance and inheritance; and
2. administrative disputes falling within the jurisdiction of the relevant administrative organs according to law.
(Relevant articles: Legislation 1)

Article 4 The parties settling disputes by means of arbitration shall reach an arbitration agreement on a mutually voluntary basis. An arbitration commission shall not accept an application for arbitration submitted by one of the parties in the absence of an arbitration agreement.
(Relevant articles: Legislation 1)

Article 5 A people's court shall not accept an action initiated by one of the parties if the parties have concluded an arbitration agreement, unless the arbitration agreement is invalid.
(Relevant articles: Legislation 1 Articles 1)

Article 6 An arbitration commission shall be selected by the parties by agreement.
The level jurisdiction system and the territorial jurisdiction system shall not apply to arbitration.

Article 7 Disputes shall be fairly and reasonably settled by arbitration on the basis of facts and in accordance with the relevant provisions of law.

Article 8 Arbitration shall be conducted in accordance with the law, independent of any intervention by administrative organs, social organizations or individuals.

Article 9 The system of final and binding arbitral award shall apply to arbitration. After an arbitral award is rendered, where the parties apply for arbitration or initiate an action to the people's court in respect of the same dispute, an arbitration commission or a people's court accept the action.
If the arbitration award is canceled or is not enforced as rendered by a people's court in accordance with the law, the parties may, in accordance with a new arbitration agreement between them in respect of the dispute, apply for arbitration or initiate legal proceedings with the people's court.
(Relevant articles: Legislation 3)

Chapter II Arbitration Commission and Arbitration Association

Article 10 Arbitration commissions may be established in municipalities directly under the Central Government, and cities where the people's governments of provinces and autonomous regions are located or in other cities divided into districts according to needs. Arbitration commissions shall not be established at each level of the administrative divisions.
The people's governments of the municipalities and cities specified in the above paragraph shall organize the relevant departments and the Chamber of Commerce for the formation of an arbitration commission.
The establishment of an arbitration commission shall be registered with the judicial administrative department of the relevant provinces, autonomous regions or municipalities directly under the Central Government.

Article 11 An arbitration commission shall meet the following requirements:
1. it shall have its own name, domicile and Articles of association;
2. it shall possess the necessary property;
3. it shall have its own members; and
4. it shall have appointed arbitrators.
The Articles of association of an arbitration commission shall be formulated in accordance with this Law.

Article 12 An arbitration commission shall comprise a chairman, two to four vice-chairmen and seven to eleven members.
The chairman, vice-chairmen and members of an arbitration commission must be persons specialized in law, economic and trade and persons who have practical work experience. The number of specialists in law, economic and trade shall not be less than two-thirds of the members of an arbitration commission.

Article 13 An arbitration commission shall appoint fair and honest person as its arbitrators.
Arbitrators shall meet one of the following requirements:
1. they have been engaged in arbitration work for eight full years;
2. they have worked as a lawyer for eight full years;
3. they had worked as a judge for eight full years;
4. they are engaged in legal research or legal teaching with a senior academic title; or
5. they have legal knowledge and are engaged in professional work relating to economics and trade with a senior academic title or at the equivalent professional level.
The arbitration commission shall prepare a register of arbitrators according to different specialties.
(Relevant articles: Legislation 1)

Article 14 Arbitration commissions shall be independent of administrative organs and there are no subordinate relations with any administrative organs. There should not be any relations between different arbitration commissions.

Article 15 The China Arbitration Association is a social organization with the status of a legal person.
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