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Arbitration Law of the People's Republic of China

Adopted at the 9th Session of the Standing Committee of the National People'sCongress on August 31, 1994 and promulgated by the Order of President of thePeople'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 andtimely arbitration of economic disputes, protect the legitimate rights andinterests of the relevant parties and guarantee the sound development of thesocialist market economy.Article2 Contractual disputes and other disputes arising from property rights andinterests between citizens, legal persons and other organizations of equalstatus 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 andinheritance; and
2. administrative disputes falling within the jurisdiction of the relevantadministrative organs according to law.
Article 4 The parties settling disputes by means of arbitration shall reachan arbitration agreement on a mutually voluntary basis. An arbitrationcommission shall not accept an application for arbitration submitted by one ofthe parties in the absence of an arbitration agreement.
Article 5 A people's court shall not accept an action initiated by one ofthe parties if the parties have concluded an arbitration agreement, unless thearbitration agreement is invalid.
Article 6 An arbitration commission shall be selected by the parties byagreement.
The level jurisdiction system and the territorial jurisdiction system shall notapply to arbitration.Article7 Disputes shall be fairly and reasonably settled by arbitration on the basisof facts and in accordance with the relevant provisions of law.Article 8 Arbitration shall beconducted in accordance with the law, independent of any intervention byadministrative organs, social organizations or individuals.Article 9 The system of final and binding arbitralaward shall apply to arbitration. After an arbitral award is rendered, wherethe parties apply for arbitration or initiate an action to the people's courtin respect of the same dispute, an arbitration commission or a people's courtaccept the action.
If the arbitration award is canceled or is not enforced as rendered by apeople's court in accordance with the law, the parties may, in accordance witha new arbitration agreement between them in respect of the dispute, apply forarbitration or initiate legal proceedings with the people's court.
Chapter II Arbitration Commission and ArbitrationAssociation

Article 10 Arbitration commissions may be established inmunicipalities directly under the Central Government, and cities where thepeople's governments of provinces and autonomous regions are located or inother cities divided into districts according to needs. Arbitration commissionsshall not be established at each level of the administrative divisions.
The people's governments of the municipalities and cities specified in theabove paragraph shall organize the relevant departments and the Chamber ofCommerce for the formation of an arbitration commission.
The establishment of an arbitration commission shall be registered with thejudicial administrative department of the relevant provinces, autonomousregions or municipalities directly under the Central Government.Article 11 An arbitration commissionshall 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 inaccordance with this Law.Article12 An arbitration commission shall comprise a chairman, two to fourvice-chairmen and seven to eleven members.
The chairman, vice-chairmen and members of an arbitration commission must bepersons specialized in law, economic and trade and persons who have practicalwork experience. The number of specialists in law, economic and trade shall notbe less than two-thirds of the members of an arbitration commission.Article 13 An arbitration commissionshall 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 academictitle; or
5. they have legal knowledge and are engaged in professional work relating toeconomics and trade with a senior academic title or at the equivalentprofessional level.
The arbitration commission shall prepare a register of arbitrators according todifferent specialties.Article14 Arbitration commissions shall be independent of administrative organs andthere are no subordinate relations with any administrative organs. There shouldnot be any relations between different arbitration commissions.Article 15 The China ArbitrationAssociation is a social organization with the status of a legal person.Arbitration commissions are members of the China Arbitration Association. TheArticles of association of the China Arbitration Association shall beformulated by the national general meeting of the members.
The China Arbitration Association is an organization in charge ofself-regulation of arbitration commissions. It shall conduct supervision overthe breach of discipline of the arbitration commissions and their members andarbitrators in accordance with its Articles of association.
The China Arbitration Association shall formulate Arbitration Rules inaccordance with this Law and the Civil Procedure Law. Chapter III Arbitration Agreement

Article 16 An arbitration agreement shall include thearbitration clauses stipulated in a contract and any other written agreementfor arbitration concluded before or after a dispute occurs.
The following contents shall be included in an arbitration agreement:
1. the expression of the parties' wish to submit for 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 thefollowing circumstances:
1. matters agreed upon for arbitration are beyond the scope of arbitrationprescribed by law;
2. an arbitration agreement concluded by persons without or with limitedcapacity for civil acts; and
3. one party forces the other party to sign an arbitration agreement by meansof duress.Article 18 If thearbitration matters or the arbitration commission are not agreed upon by theparties in the arbitration agreement, or if the relevant provisions are notclear, the parties may supplement the agreement. If the parties fail to agreeupon the supplementary agreement, the arbitration agreement shall be invalid.
Article 19 An arbitration agreement shall exist independently. Any changesto, rescission, termination or invalidity of the contract shall not affect thevalidity of the arbitration agreement.
An arbitral tribunal has the right to rule on the validity of a contract.
Article 20 If the parties object to the validity of the arbitrationagreement, they may apply to the arbitration commission for a decision or to apeople's court for a ruling. If one of the parties requests for a decision fromthe arbitration commission, but the other party applies to a people's court fora ruling, the people's court shall give the ruling.
If the parties object to the validity of the arbitration agreement, theobjection shall be made before the start of the first hearing of the arbitrationtribunal.
Chapter IV Arbitration Procedure

Section 1 Application and Acceptance

Article 21 Parties applying for arbitration shall meet thefollowing conditions:
1. There is an arbitration agreement;
2. There is a specific arbitration request and facts and grounds; and
3. The claim is under the jurisdiction of the arbitration commission.Article 22 A party applying forarbitration shall submit to an arbitration commission the arbitrationagreement, an application for arbitration and copies thereof.Article 23 The following particularsshall be specified in an application for arbitration:
1. the name, sex, age, occupation, work unit and address of the party, thename, domicile and legal representative of the legal person or otherorganization and the name and position of its person-in charge;
2. the arbitration request and facts and grounds on which the claim is based;and
3. evidence and the source thereof, the name and address of the witness(es).Article 24 The arbitration commissionshall, within 5 days from the date of the receipt of an application forarbitration, notify the parties that it considers the conditions for acceptancehave been fulfilled, and that the application is accepted by it. If thearbitration commission considers that the conditions have not been fulfilled,it shall notify the parties of acceptance in writing and state its reasons.Article 25 Upon acceptance of anapplication for arbitration, the arbitration commission shall, within the timelimit specified by the Arbitration Rules, serve a copy of the Arbitration Rulesand the list of arbitrators on the claimant, and serve a copy of thearbitration application, the Arbitration Rules and the list of arbitrators onthe respondent.
Upon receipt of a copy of the arbitration application, the respondent shall,within the time limit prescribed by the Arbitration Rules, submit its defenseto the arbitration commission. Upon receipt of the defense, the arbitrationcommission shall, within the time limit prescribed by the Arbitration Rules, servea copy of the reply on the claimant. The failure of the respondent to submit adefense shall not affect the proceeding of the arbitration procedures.Article 26 Where the parties havereached an arbitration agreement, but one of the parties initiates an action ina people's court without stating the existence of the arbitration agreement,the people's court shall reject the action if the other party submits to thecourt the arbitration agreement before the first hearing of the case unless thearbitration agreement is invalid., If the other party fails to object to thehearing by the people's court before the first hearing, the arbitrationagreement shall be considered to have been waived by the party and the people'scourt shall proceed with the hearing.
Article 27 A claimant may abandon or alter his arbitration claim. Therespondent may accept the arbitration claim or object to it and has the rightto lodge a counterclaim.Article28 A party may apply for property preservation if, as the result of an act ofthe other party or for some other reasons, it appears that an award may beimpossible or difficult to enforce.
If one of the parties applies for property preservation, the arbitrationcommission shall submit to a people's court the application of the party inaccordance with the relevant provisions of the Civil Procedure Law.
If a property preservation order is unfounded, the applicant shall compensatethe party against whom the order was made for any losses sustained as a resultof the implementation of the property preservation order.
Article 29 The parties and their legal representatives may appoint lawyersor engage agents to handle matters relating to the arbitration. In the eventthat a lawyer or an agent is appointed to handle the arbitration matters, aletter of authorization shall be submitted to the arbitration commission. Section 2 Composition of the Arbitral Tribunal

Article 30 An arbitral tribunal may comprise threearbitrators 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 arbitral tribunalcomprising three arbitrators, each party shall select or authorize the chairmanof the arbitration commission to appoint one arbitrator. The third arbitratorshall be selected jointly by the parties or be nominated by the chairman of thearbitration 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 thechairman of the arbitration commission in accordance with a joint mandate givenby the parties.Article 32 Ifthe parties fail, within the time limit prescribed by the Arbitration Rules, toselect the form of the arbitration tribunal or fail to select arbitrators, thearbitrators shall be appointed by the chairman of the arbitration commission.Article 33 After the arbitral tribunalis constituted, the arbitration commission shall notify the parties in writingof the composition of the arbitral tribunal.Article 34 In any of the following circumstances, an arbitratormust withdraw from the arbitration, and the parties shall have the right toapply 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 agentwhich might affect the impartiality of the arbitration;
4. meets a party or his agent in private, accepts an invitation for dinner by aparty or his representative or accepts gifts presented by any of them.Article 35 A party applying for thewithdrawal of an arbitrator shall state his reasons and submit the applicationprior to the first hearing. An application for withdrawal may also be submittedbefore the conclusion of the last hearing if reasons for the withdrawal onlybecame known after the commencement of the first hearing.Article 36 Whether an arbitrator is to be withdrawnor not shall be determined by the chairman of the arbitration commission. Ifthe chairman is serving as an arbitrator, the withdrawal shall be determinedcollectively by the arbitration commission.
Article 37 If an arbitrator is unable to perform his duties due towithdrawal or any other reason, another arbitrator shall be selected orappointed in accordance with the provisions of this Law.
After the selection or appointment of a new arbitrator due to the withdrawal ofan arbitrator, the parties may apply for the resumption of the arbitrationprocedure. The arbitral tribunal shall determine whether the resumption of theprocedure may be allowed. The arbitral tribunal may determine on its ownwhether the arbitration procedure shall be resumed.Article 38 An arbitrator who is involved in one ofthe circumstances prescribed in Item 4, Article 34 and whose violations areserious, or an arbitrator who is involved in those prescribed in Item 6,Article 58 shall bear legal liabilities in accordance with the law and thearbitration commission shall remove his name from the list of arbitrators. Section 3 Hearing and Arbitral Awards

Article 39 An arbitral tribunal shall hold a tribunalsession to hear an arbitration case. If the parties agree not to hold ahearing, the arbitration tribunal may render an award in accordance with thearbitration application, the defense statement and other documents.Article 40 An arbitration shall notbe conducted in public. If the parties agree to a public hearing, thearbitration may proceed in public, except those concerning state secrets.Article 41 The arbitration commissionshall notify the two parties within the time limit provided by the ArbitrationRules of the date of the hearing. Either party may request to postpone thehearing within the time limit provided by the Arbitration Rules if there is agenuine reason. The arbitral tribunal shall decide whether to postpone thehearing.Article 42 If anapplicant for arbitration who has been given a notice in
writing fails to appear before the tribunal without good reasons, or leaves thetribunal room during a hearing without the permission of the arbitral tribunal,the applicant shall be deemed as having withdrawn his application.
If the respondent was served with a notice in writing but does not appearbefore the tribunal without due reasons or leaves the tribunal room during ahearing without the permission of the arbitral tribunal, an award by defaultmay be given.Article 43 Theparties 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 arbitral tribunal may submit them to an appraisal organ agreed upon by theparties or to the appraisal organ appointed by the arbitration tribunal if itdeems such appraisal to be necessary.
According to the claim of the parties or the request of the arbitral tribunal,the appraisal organ shall appoint an appraiser to participate in the hearing.Upon the permission of the arbitral tribunal, the parties may question theappraiser.Article 45 Anyevidence shall be produced at the start of the hearing. The parties maychallenge the validity of such evidence.Article 46 In the event that the evidence might be destroyed orthat it would be difficult to obtain the evidence later on, the parties mayapply for the evidence to be preserved. If the parties apply for suchpreservation, the arbitration commission shall submit the application to the basicpeople's court in the place where the evidence is located.Article 47 The parties have the right to argueduring arbitration procedures. At the end of the debate, the presidingarbitrator or the sole arbitrator shall ask for the final opinion of the parties.Article 48 An arbitration tribunalshall make a written record of the hearing. If the parties or otherparticipants to the arbitration consider that the record has omitted a part oftheir statement or is incorrect in some other respect, they shall have theright to request correction thereof. If no correction is made, the request forcorrection shall be noted in the written record.
The arbitrators, recorder, parties and other participants to an arbitrationshall sign or affix their seals to the record.Article 49 After the submission of an application forarbitration, the parties may settle the dispute among themselves throughconciliation. If a conciliation agreement has been reached, the parties mayapply to the arbitration tribunal for an award based on the conciliationagreement. They may also withdraw the application for arbitration.
Article 50 If the parties fall back on their words after the conclusion ofa conciliation agreement and the withdrawal of the arbitration application,application may be made for arbitration in accordance with the arbitrationagreement.Article 51 Beforegiving an award, an arbitral tribunal may first attempt to conciliate. If theparties apply for conciliation voluntarily, the arbitral tribunal shallconciliate. If conciliation is unsuccessful, an award shall be made promptly.
When a settlement agreement is reached by conciliation, the arbitral tribunalshall prepare the conciliation statement or the award on the basis of theresults of the settlement agreement. A conciliation statement shall have thesame legal force as that of an award.Article 52 A conciliation statement shall set forth thearbitration claims and the results of the agreement between the parties. Theconciliation statement shall be signed by the arbitrators, sealed by thearbitration commission, and served on both parties.
A conciliation statement shall have legal effect once signed and accepted bythe parties.
If the parties fall back on their words before the conciliation statement issinged and accepted by them, an award shall be made by the arbitral tribunalpromptly.Article 53 An awardshall be based on the opinion of the majority of arbitrators. The opinion ofthe minority arbitrators shall be recorded in writing. If an opinion of theminority arbitrators shall be recorded in writing. If the tribunal fails toform a majority opinion, the award shall be given in accordance with theopinion of the presiding arbitrator.Article 54 The arbitration claims, the matters in dispute, thegrounds upon which an award is given, the results of the judgment, theresponsibility for the arbitration fees and the date of the award shall be setforth in the award. If the parties agree not to include in the award thematters in dispute and the grounds on which the award is based, such mattersmay not be stated in the award. The award shall be signed by the arbitratorsand sealed by the arbitration commission. The arbitrator who disagrees with theaward may select to sign or not to sign it.Article 55 During the course of arbitration by an arbitrationtribunal, where a part of facts has been made clear, a partial award may firstbe 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 legallyeffective on the date it is given. Chapter VApplication for Cancellation of an Award

Article 58 The parties may apply to the intermediatepeople's court at the place where the arbitration commission is located forcancellation of an award if they provide evidence proving that the awardinvolves 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 agreementor not under the jurisdiction of the arbitration commission;
3. the composition of the arbitral tribunal or the arbitration procedure is incontrary 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 theimpartiality of the award; or
6. the arbitrator(s) has (have) demanded or accepted bribes, committed graft orperverted the law in making the arbitral award.
The peoples' court shall rule to cancel the award if the existence of one ofthe circumstances prescribed in the preceding clause is confirmed by itscollegiate bench.
The people's court shall rule to cancel the award if it holds that the award iscontrary to the social and public interests.
Article 59 If a party applies for cancellation of an award, an applicationshall be submitted within 6 months after receipt of the award.Article 60 The people's court shall,within 2 months after the receipt of the application for cancellation of anaward, render its decision for cancellation of the award or for rejection ofthe application.
Article 61 If the people's court holds that the case may be re-arbitratedby the arbitral tribunal after the receipt of the application for cancellationof an award, the court shall inform the arbitral tribunal of re-arbitrating thecase within a certain period of time and rule to suspend the cancellationprocedure. If the arbitration tribunal refuses to re-arbitrate, the people'scourt 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 apeople's court for enforcement in accordance with the relevant provisions ofthe 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 enforcean award if the respondent in enforcement procedure provides evidence provingthat the award involves one of the circumstances prescribed in Paragraph 2,Article 217 of the Civil Procedure Law.
Article 64 If one party applies for enforcement of an award while theother party applies for cancellation of the award, the people's court receivingsuch application shall rule to suspend enforcement of the award.
If a people's court rules to cancel an award, it shall rule to terminateenforcement. If the people's court overrules the application for cancellationof 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 toall arbitration of disputes arising from foreign economic, trade,transportation or maritime matters. In the absence of provisions in thisChapter, other relevant provisions of this Law shall apply.Article 66 A foreign-related arbitration commissionmay be organized and established by the China International Chamber ofCommerce.
A foreign arbitration commission shall comprise one chairman, severalvice-chairmen and several committee members.
The chairman, vice-chairmen and committee members may be appointed by the ChinaInternational Chamber of Commerce.Article 67 A foreign arbitration commission may appoint foreigners withprofessional knowledge in law, economy and trade, science and technology andother fields as arbitrators.Article68 In the event that the parties to a foreign-related arbitration apply forevidence preservation, the foreign arbitration commission shall submit theirapplications to the intermediate people's court in the place where the evidenceis located.Article 69 Thearbitration tribunal of a foreign arbitration commission may record the detailsof 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 partiesand other participants in the arbitration.Article 70 A people's court shall, after examination andverification by its collegiate bench, rule to cancel an award if a party to thecase provides evidence proving that the arbitration award involves one of thecircumstances prescribed in Paragraph 1, Article 260 of the Civil ProcedureLaw.
Article 71 A people's court shall, after examination and verification byits collegiate bench, rule not to enforce an award-if the respondent providesevidence proving that the arbitral award involves one of the circumstancesprescribed in Paragraph 1, Article 260 of the Civil Procedure Law.
Article 72 Where the party subject to enforcement or its property is notwithin the territory of the People's Republic of China, a party applying forthe enforcement of a legally effective arbitration award shall apply directlyto the foreign court having jurisdiction for recognition and enforcement of theaward.Article 73Foreign-related arbitration rules may be formulated by the China InternationalChamber of Commerce in accordance with this Law and the relevant provisions ofthe Civil Procedure Law. Chapter VIII SupplementaryProvisions

Article 74 If the law has stipulated a time limit forarbitration, such provisions of the law shall apply. If the law has notstipulated a time limit for arbitration, the provisions on the limitation ofactions shall apply.Article 75The arbitration Commission may formulate provisional arbitration rules inaccordance with this Law and the relevant provisions of the Civil Procedure Lawbefore the formulation of the arbitration rules by the China ArbitrationAssociation.Article 76 Theparties shall pay arbitration fees in accordance with the relevant provisions.
The methods for the collection of arbitration fees shall be submitted to thecommodity prices administration for approval.Article 77 Arbitration of labor disputes and disputes overcontracts for undertaking agricultural projects within agricultural collectiveeconomic organizations shall be separately stipulated.Article 78 In the event of conflict between theprovisions on arbitration formulated before the coming into effect of this Lawand the provisions of this Law, the provisions of this Law shall prevail.Article 79 Arbitration organsestablished before the coming into effect of this Law in the municipalitiesdirectly under the Central Government, in the municipalities where the people'sgovernments of the provinces or autonomous regions and in other cities dividedinto districts must be re-organized in accordance with the relevant provisionsof this Law. The arbitration organs which are not re-organized shall beterminated at the expiration of one year after the date of implementation ofthis Law.
All other arbitration organs established before the implementation of this Lawand not conforming to the provisions of this Law shall be terminated on thedate of implementation of this Law.Article 80 This Law shall come into effect as of September 1, 1995.