Arbitration Law of the Peoples Republic of China

【章名】 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.

【章名】

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.

【章名】 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.

【章名】

Chapter IV Arbitration Procedure

【章名】 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.

【章名】 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.

【章名】

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.

【章名】 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.

【章名】 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.

【章名】 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.

【章名】 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.