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
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
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
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
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
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
The arbitration commission shall establish a list of arbitrators according to
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.
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
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
Chapter IV Arbitration Procedure
Section 1: Application and Acceptance for Arbitration
Article 21 The parties applying for arbitration shall fulfil the following
1. they must have an arbitration agreement;
2. they must have a specific claim with facts and argument on which the claim
and 3. the arbitration must be within the jurisdiction of the arbitration
Article 22 The party applying for arbitration shall submit to an arbitration
commission the arbitration agreement, an application for arbitration and copies
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
and 3. evidence and the source of evidence, the name and address of the
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
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
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.
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
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
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
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
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
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
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
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
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
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
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.
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.
第八章 附 則
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
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
Article 76 The parties shall pay arbitration fees in accordance with the
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.