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Whole document
Arbitration Law of the People's Republic of China
(Adopted at the 8th Session of the Standing Committee of the
8th National People's Congress and Promulgated on August 31,
1994)
Chapter I General Provisions
Article 1
This Law is formulated in order to ensure that economic
disputes shall be impartially and promptly arbitrated, to
protect the legitimate rights and interests of the relevant
parties and to guarantee the healthy development of the
socialist market economy.
Article 2
Disputes over contracts and disputes over property rights
and interests between citizens, legal persons and other
organizations as equal subjects of law may be submitted to
arbitration.
Article 3
The following disputes shall not be submitted to
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.
Article 4
The parties adopting arbitration for dispute settlement
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.
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.
Article 6
An arbitration commission shall be selected by the parties
by agreement.
The jurisdiction by level system and the district
jurisdiction system shall not apply in 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 single ruling system shall be applied in arbitration.
The arbitration commission shall not accept any application
for arbitration, nor shall a people's court accept any
action submitted by the party in respect of the same dispute
after an arbitration award has already been given in
relation to that matter.
If the arbitration award is canceled or its enforcement has
been disallowed 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, re-apply
for arbitration or initiate legal proceedings with the
people's court.
Chapter II Arbitration Commissions and Arbitration
Association
Article 10
Arbitration commissions may be established in the
municipalities directly under the Central Government, in the
municipalities where the people's governments of provinces
and autonomous regions are located or, if necessary, in
other cities divided into districts. 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 province, autonomous region or municipalities
directly under the Central Government.
Article 11
An arbitration commission shall fulfil the following
conditions:
1. it must have its own name, domicile and Articles of
Association;
2. it must possess the necessary property;
3. it must have its own members; and
4. it must have arbitrators for appointment.
The articles of association of the 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 actual working experience. The
number of specialists in law, economic and trade shall not
be less than two-thirds of the members of an arbitration
association.
Article 13
The arbitration commission shall appoint fair and honest
person as its arbitrators.
Arbitrators must fulfil one of the following conditions:
1. they have been engaged in arbitration work for at least
eight years;
2. they have worked as a lawyer for at least eight years;
3. they have been a judge for at least eight years;
4. they are engaged in legal research or legal teaching and
in senior positions; and
5. they have legal knowledge and are engaged in professional
work relating to economics and trade, and in senior
positions or of the equivalent professional level.
The arbitration commission shall establish a list of
arbitrators according to different professionals.
Article 14
Arbitration commissions are independent of administrative
organs and there are no subordinate relations with any
administrative organs nor between the different arbitration
commissions.
Article 15
The China Arbitration Association is a social organization
with the status of a legal person. Arbitration commissions
are members of the China Arbitration Association. The
Articles of Association of the China Arbitration Association
shall be formulated by the national general meeting of the
members.
The China Arbitration Association is an organization in
charge of self-regulation of the arbitration commissions. It
shall conduct supervision over the conduct (any breach of
discipline) of the arbitration commissions and their members
and arbitrators in accordance with its articles of
association.
The China Arbitration Association shall formulate
Arbitration Rules in accordance with this Law and the Civil
Procedure Law.
Chapter III Arbitration Agreement
Article 16
An arbitration agreement shall include the arbitration
clauses provided in the contract and any other written form
of agreement concluded before or after the disputes
providing for submission to arbitration.
The following contents shall be included in an arbitration
agreement:
1. the expression of the parties' wish to submit to
arbitration;
2. the matters to be arbitrated; and
3. the Arbitration Commission selected by the parties.
Article 17
An arbitration agreement shall be invalid under any of the
following circumstances:
1. matters agreed upon for arbitration are beyond the scope
of arbitration prescribed by law;
2. an arbitration agreement concluded by persons without or
with limited capacity for civil acts; and
3. one party forces the other party to sign an arbitration
agreement by means of duress.
Article 18
If the arbitration matters or the arbitration commission are
not agreed upon by the parties in the arbitration agreement,
or, if the relevant provisions are not clear, the parties
may supplement the agreement. If the parties fail to agree
upon the supplementary agreement, the arbitration agreement
shall be invalid.
Article 19
An arbitration agreement shall exist independently. Any
changes to, rescission, termination or invalidity of the
contract shall not affect the validity of the arbitration
agreement.
An arbitration tribunal has the right to rule on the
validity of a contract.
Article 20
If the parties object to the validity of the arbitration
agreement, they may apply to the arbitration commission for
a decision or to a people's court for a ruling. If one of
the parties submits to the arbitration commission for a
decision, but the other party applies to a people's court
for a ruling, the people's court shall give the ruling.
If the parties contest the validity of the arbitration
agreement, the objection shall be made before the start of
the first hearing of the arbitration tribunal.
Chapter IV Arbitration Procedure
Section 1: Application and Acceptance for Arbitration
Article 21
The parties applying for arbitration shall fulfil the
following conditions:
1. they must have an arbitration agreement;
2. they must have a specific claim with facts and argument
on which the claim is based; and
3. the arbitration must be within the jurisdiction of the
arbitration commission.
Article 22
The party applying for arbitration shall submit to an
arbitration commission the arbitration agreement, an
application for arbitration and copies thereof.
Article 23
An arbitration application shall state clearly the
following:
1. the name, sex, age, occupation, work unit and address of
the party, the name address and legal representative of the
legal person or other organization and the name and position
of its person-in charge;
2. the arbitration claim and the facts and argument on which
the claim is based; and
3. evidence and the source of evidence, the name and address
of the witness (es).
Article 24
Within 5 days from the date of receiving the arbitration
application, the arbitration commission shall notify the
parties that it considers the conditions for acceptance have
been fulfilled, and that the application is accepted by it.
If the arbitration commission considers that the conditions
have not been fulfilled, it shall notify the parties in
writing of its rejection, stating its reasons.
Article 25
Upon acceptance of an arbitration application, the
arbitration commission shall, within the time limit provided
by the Arbitration Rules, serve a copy of the Arbitration
Rules and the list of arbitrators on the applicant, and
serve a copy of the arbitration application, the Arbitration
Rules and the list of arbitrators on the respondent.
Upon receipt of a copy of the arbitration application, the
respondent shall, within the time limit prescribed by the
Arbitration Rules, submit its defence to the arbitration
commission. Upon receipt of the defence, the arbitration
commission shall, within the time limit prescribed by
the Arbitration Rules, serve a copy of the reply on the
applicant. The failure of the respondent to submit a defence
shall not affect the proceeding of the arbitration
procedures.
Article 26
Where the parties had agreed on an arbitration agreement,
but one of the parties initiates an action before a people's
court without stating the existence of the arbitration
agreement, the people's court shall, unless the arbitration
agreement is invalid, reject the action if the other party
submits to the court the arbitration agreement before
the first hearing of the case. If the other party fails to
object to the hearing by the people's court before the first
hearing, the arbitration agreement shall be considered to
have been waived by the party and the people's court shall
proceed with the hearing.
Article 27
The applicant may abandon or alter his arbitration claim.
The respondent may accept the arbitration claim or object to
it. It has a right to make a counterclaim.
Article 28
A party may apply for property preservation if, as the
result of an act of the other party or for some other
reasons, it appears that an award may be impossible or
difficult to enforce.
If one of the parties applies for property preservation,
the arbitration commission shall submit to a people's court
the application of the party in accordance with the relevant
provisions of the Civil Procedure Law.
If a property preservation order is unfounded, the applicant
shall compensate the party against whom the order was made
for any losses sustained as a result of the implementation
of the property preservation order.
Article 29
The parties and their legal representatives may appoint
lawyers or engage agents to handle matters relating to the
arbitration. In the event that a lawyer or an agent is
appointed to handle the arbitration matters, a letter of
authorization shall be submitted to the
arbitration commission.
Section 2: Composition of the Arbitration Tribunal
Article 30
An arbitration tribunal may comprise three arbitrators or
one arbitrator. If an arbitration tribunal comprises three
arbitrators, a presiding arbitrator shall be appointed.
Article 31
If the parties agree to form an arbitration tribunal
comprising three arbitrators, each party shall select or
authorize the chairmen of the arbitration commission to
appoint one arbitrator. The third arbitrator shall be
selected jointly by the parties or be nominated by the
chairman of the arbitration commission in accordance with a
joint mandate given by the parties. The third arbitrator
shall be the presiding arbitrator.
If the parties agree to have one arbitrator to form an
arbitration tribunal, the arbitrator shall be selected
jointly by the parties or be nominated by the chairman of
the arbitration commission in accordance with a joint
mandate given by the parties.
Article 32
If the parties fail, within the time limit prescribed by
the Arbitration Rules, to select the form of the
constitution of the arbitration tribunal or fail to select
the arbitrators, the arbitrators shall be appointed by the
chairman of the arbitration commission.
Article 33
After the arbitration tribunal is constituted, the
arbitration commission shall notify the parties in writing
of the composition of the arbitration tribunal.
Article 34
In any of the following circumstances, an arbitrator must
withdraw from the arbitration, and the parties shall have
the right to apply for his withdrawal if he:
1. is a party or a close relative of a party or of a
party's representative;
2. is related in the case;
3. has some other relationship with a party to the case or
with a party's agent which could possibly affect the
impartiality of the arbitration;
4. meets a party or his agent in private, accepts an
invitation for dinner by a party or his representative or
accepts gifts presented by any of them.
Article 35
When applying for the withdrawal of an arbitrator, the
petitioning party shall state his reasons and submit a
withdrawal application before the first hearing. A
withdrawal application may also be submitted before the
conclusion of the last hearing if reasons for the withdrawal
only became known after the start of the first hearing.
Article 36
Whether an arbitrator is withdrawn or not shall be
determined by the chairman of the arbitration commission. If
chairman is serving as an arbitrator, the withdrawal or not
shall be determined collectively by the arbitration
commission.
Article 37
If an arbitrator is unable to perform his duties as an
arbitrator as a result of the withdrawal or any other
reasons, another arbitrator shall be selected or appointed
in accordance with the provisions of this Law.
After a replaced arbitrator has been selected or appointed
following the withdrawal of an arbitrator, the parties may
apply to resume the arbitration procedure. The arbitration
tribunal shall determine whether the resumption of the
procedure may be allowed. The arbitration tribunal may
determine on its own whether the arbitration procedure shall
be resumed.
Article 38
An arbitrator involved in one of the circumstances described
in Item 4, Article 34, if it is serious, or those described
in Item 6, Article 58, such arbitrator shall be legally
liable in accordance with the law.
The arbitration commission shall remove his name from the
list of arbitrators.
Section 3: Hearing and Arbitral Awards
Article 39
An arbitration tribunal shall hold a tribunal session to
hear an arbitration case. If the parties agree not to hold a
hearing, the arbitration tribunal may render an award in
accordance with the arbitration application, the defence
statement and other documents.
Article 40
An arbitration shall not be conducted in public. If the
parties agree to a public hearing, the arbitration may
proceed in public, except those concerning state secrets.
Article 41
The arbitration commission shall notify the two parties
within the time limit provided by the Arbitration Rules of
the date of the hearing.
Either party may request to postpone the hearing with in the
time limit provided by the Arbitration Rules if there is a
genuine reason. The arbitration tribunal shall decide
whether to postpone the hearing.
Article 42
If the applicant for arbitration who has been given a notice
in writing does not appear before the tribunal without good
reasons, or leaves the tribunal room during a hearing
without the permission of the arbitration tribunal, such
applicant shall be deemed as having withdrawn his
application.
If the party against whom the application was made was
served with a notice in writing but does not appear before
the tribunal without due reasons or leaves the tribunal room
during a hearing without the permission of the arbitration
tribunal, an award by default may be given.
Article 43
The parties shall produce evidence in support of their
claims.
An arbitration tribunal may collect on its own evidence it
considers necessary.
Article 44
For specialized matters, an arbitration tribunal may submit
for appraisal to an appraisal organ agreed upon by the
parties or to the appraisal organ appointed by the
arbitration tribunal if it deems such appraisal to be
necessary.
According to the claim of the parties or the request of
the arbitration tribunal, the appraisal organ shall appoint
an appraiser to participate in the hearing. Upon the
permission of the arbitration tribunal, the parties may
question the appraiser.
Article 45
Any evidence shall be produced at the start of the hearing.
The parties may challenge the validity of such evidence.
Article 46
In the event that the evidence might be destroyed or if it
would be difficult to obtain the evidence later on, the
parties may apply for the evidence to be preserved. If the
parties apply for such preservation, the arbitration
commission shall submit the application to the
basic-level people's court of the place where the evidence
is located.
Article 47
The parties have the right to argue during an arbitration
procedure.
At the end of the debate, the presiding arbitrator or the
sole arbitrator shall ask for the final opinion of the
parties.
Article 48
An arbitration tribunal shall make a written record of the
hearing. If the parties or other participants to the
arbitration consider that the record has omitted a part of
their statement or is incorrect in some other respect, they
shall have the right to request correction thereof. If
no correction is made, the request for correction shall be
noted in the written record.
The arbitrators, recorder, parties and other participants to
the arbitration shall sign or affix their seals to the
record.
Article 49
After the submission of an arbitration application, the
parties may settle the dispute among themselves through
conciliation. If a conciliation agreement has been reached,
the parties may apply to the arbitration tribunal for an
award based on the conciliation agreement.
Then may also withdraw the arbitration application.
Article 50
If the parties fall back on their words after the conclusion
of a conciliation agreement and the withdrawal of the
arbitration application, application may be made for
arbitration in accordance with the arbitration agreement.
Article 51
Before giving an award, an arbitration tribunal may first
attempt to conciliate. If the parties apply for conciliation
voluntarily, the arbitration tribunal shall conciliate. If
conciliation is unsuccessful, an award shall be made
promptly.
When a settlement agreement is reached by conciliation,
the arbitration tribunal shall prepare the conciliation
statement or the award on the basis of the results of the
settlement agreement. A conciliation statement shall have
the same legal force as that of an award.
Article 52
A conciliation statement shall set forth the arbitration
claims and the results of the agreement between the parties.
The conciliation statement shall be signed by the
arbitrators, sealed by the arbitration commission, and
served on both parties.
A conciliation statement shall have legal effect once signed
and accepted by the parties.
If the parties fall back on their words before the
conciliation statement is singed and accepted by them, an
award shall be made by the arbitration tribunal promptly.
Article 53
An award shall be based on the opinion of the majority
arbitrators. The opinion of the minority arbitrators shall
be recorded in writing. If an opinion of the minority
arbitrators shall be recorded in writing. If an opinion of
the majority arbitrators can not be constituted at
the tribunal, the award shall be given according to the
opinion of the presiding arbitrator.
Article 54
The arbitration claims, the matters in dispute, the grounds
upon which an award is given, the results of the judgement,
the responsibility for the arbitration fees and the date of
the award shall be set forth in the award. If the parties
agree not to include in the award the matters in dispute and
the grounds on which the award is based, such matters may
not be stated in the award. The award shall be signed by the
arbitrators and sealed by the arbitration commission. The
arbitrator who disagrees with the award may select to sign
or not to sign it.
Article 55
During the course of arbitration by an arbitration tribunal,
where a part of facts has been made clear, a partial award
may first be given in relation to that part.
Article 56
The parties may, within 30 days of the receipt of the award,
request the arbitration tribunal to correct any
typographical errors, calculation errors or matters which
had been awarded but omitted in the award.
Article 57
An award shall be legally effective on the date it is given.
Chapter V Application for Cancellation of an Award
Article 58
The parties may apply to the intermediate people's court at
the place where the arbitration commission is located for
cancellation of an award if they provide evidence proving
that the award involves one of the following circumstances:
1. there is no arbitration agreement between the parties;
2. the matters of the award are beyond the extent of the
arbitration agreement or not within the jurisdiction of the
arbitration commission;
3. the composition of the arbitration tribunal or the
arbitration procedure is in contrary to the legal procedure;
4. the evidence on which the award is based is falsified;
5. the other party has concealed evidence which is
sufficient to affect the impartiality of the award; and
6. the arbitrator(s) has (have) demanded or accepted bribes,
committed graft or perverted the law in making the arbitral
award.
The peoples' court shall rule to cancel the award if the
existence of one of the circumstances prescribed in the
preceding clause is confirmed by its collegiate bench.
The people's court shall rule to cancel the award if it
holds that the award is contrary to the social and public
interests.
Article 59
If a party applies for cancellation of an award, an
application shall be submitted within 6 months after receipt
of the award.
Article 60
The people's court shall, within 2 months after receipt of
the application for cancellation of an award, render its
decision for cancellation of the award or for rejection of
the application.
Article 61
If the people's court holds that the case may be
re-arbitrated by the arbitration tribunal after receipt of
the application for cancellation of an award, the court
shall inform the arbitration tribunal of re-arbitrating the
case within a certain period of time and rule to suspend the
cancellation procedure. If the arbitration tribunal refuses
to re-arbitrate, the people's court shall rule to resume the
cancellation procedure.
Chapter VI Enforcement
Article 62
The parties shall execute an arbitration award. If one party
fails to execute the award, the other party may apply to a
people's court for enforcement in accordance with the
relevant provisions of the Civil Procedure Law, and the
court shall enforce the award.
Article 63
A people's court shall, after examination and verification
by its collegiate bench, rule not to enforce an award if the
party against whom an application for enforcement is made
provides evidence proving that the award involves one of the
circumstances prescribed in Clause 2, Article 217 of the
Civil procedure Law.
Article 64
If one party applies for enforcement of an award while the
other party applies for cancellation of the award, the
people's court receiving such application shall rule to
suspend enforcement of the award.
If a people's court rules to cancel an award, it shall rule
to terminate enforcement. If the people's court overrules
the application for cancellation of an award, it shall rule
to resume enforcement.
Chapter VII Special provisions on Foreign-Related
Arbitration
Article 65
The provisions of this Chapter shall apply to all
arbitration of disputes arising from foreign economic,
trade, transportation or maritime matters. In the absence of
provisions in this Chapter, other relevant provisions of
this Law shall apply.
Article 66
A foreign arbitration commission may be organized and
established by the China International Chamber of Commerce.
A foreign arbitration commission shall comprise one
chairman, several vice-chairmen and several committee
members.
The chairman, vice-chairmen and committee members may be
appointed by the China International Chamber of Commerce.
Article 67
A foreign arbitration commission may appoint foreigners
with professional knowledge in such fields as law, economic
and trade, science and technology as arbitrators.
Article 68
If the parties to a foreign-related arbitration apply for
evidence preservation, the foreign arbitration commission
shall submit their applications to the intermediate people's
court in the place where the evidence is located.
Article 69
The arbitration tribunal of a foreign arbitration commission
may record the details of the hearing in writing or record
the essentials of the hearing in writing. The written record
of the essentials shall be signed or sealed by the parties
and other participants in the arbitration.
Article 70
A people's court shall, after examination and verification
by its collegiate bench, rule to cancel an award if a party
to the case provides evidence proving that the arbitration
award involves one of the circumstances prescribed in Clause
1, Article 260 of the Civil Procedure Law.
Article 71
A people's court shall, after examination and verification
by its collegiate bench, rule not to enforce an award-if the
party against whom an application is made provides evidence
proving that the arbitration award involves one of the
circumstances prescribed in Clause 1, Article 260 of the
Civil Procedure Law.
Article 72
Where the party subject to enforcement or its property is
not within the territory of the People's Republic of China,
a party applying for the enforcement of a legally effective
arbitration award shall apply directly to the foreign court
having jurisdiction for recognition and enforcement of the
award.
Article 73
Foreign arbitration rules may be formulated by the China
International Chamber of Commerce in accordance with this
Law and the relevant provisions of the Civil Procedure Law.
Chapter VIII Supplementary Provisions
Article 74
If the law has stipulated a time limitation of arbitration,
such provisions of the law shall apply. If the law has not
stipulated a time limitation of arbitration, the provisions
on the limitation of actions shall apply.
Article 75
The arbitration Commission may formulate provisional
arbitration rules in accordance with this Law and the
relevant provisions of the Civil Procedure Law before the
formulation of the arbitration rules by the
China Arbitration Association.
Article 76
The parties shall pay arbitration fees in accordance with
the relevant provisions.
The methods for the collection of arbitration fees shall be
submitted to the commodity prices administration department
for approval.
Article 77
Arbitration of labor disputes and disputes over contracts
for undertaking agricultural projects within agricultural
collective economic organizations shall be separately
stipulated.
Article 78
In the event of conflict between the provisions on
arbitration formulated before the coming into effect of this
Law and the provisions of this Law, the provisions of this
Law shall prevail.
Article 79
Arbitration organs established before the coming into effect
of this Law in the municipalities directly under the Central
Government, in the municipalities where the people's
governments of the provinces or autonomous regions and in
other cities divided into districts must be re-organized in
accordance with the relevant provisions of this Law.
The arbitration organs which are not re-organized shall be
terminated at the expiration of one year after the date of
effectiveness of this Law.
All other arbitration organs established before the
implementation of this Law and not conforming to the
provisions of this Law shall be terminated on the date of
effectiveness of this Law.
Article 80
This Law shall be effective as of September 1, 1995.
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