【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.
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