On September 12, 2025, the 17th Session of the Standing Committee of the 14th National People's Congress of China amended the Arbitration Law of the People's Republic of China. The amended Arbitration Law will take effect on March 1, 2026. Key revisions include the following:
- The amended Arbitration Law clarifies the legal validity of arbitration proceedings conducted online. It stipulates that with the consent of the parties, arbitration proceedings may be conducted online via information network platforms and shall have the same legal effect as offline arbitration proceedings.
- The amended Arbitration Law clarifies circumstances under which an arbitration agreement is deemed to exist. It provides that if one party asserts the existence of an arbitration agreement and the other party fails to deny it before the first hearing, and the arbitral tribunal has prompted and recorded this, the arbitration agreement shall be deemed to exist.
- The amended Arbitration Law clarifies the arbitral tribunal's jurisdiction over the validity of arbitration agreements. It provides that where parties dispute the validity of an arbitration agreement, they may request a ruling from the People's Court or a decision from the arbitration institution administering the proceeding or alternatively request a determination from the arbitral tribunal. Where one party requests a determination from the arbitration institution or tribunal while the other requests a ruling from the People's Court, the ruling of the People's Court shall prevail.
- Special arbitration (ad-hoc arbitration) not administered by an institution is permitted for specific foreign-related cases. For two types of specific cases — disputes arising from foreign-related maritime matters and foreign-related disputes between enterprises within free trade pilot zones — the amended Arbitration Law clarifies that parties may choose, in addition to arbitration administered by a commonly applicable arbitration institution, a special arbitration conducted at a location within China, under agreed arbitration rules, and by an arbitral tribunal composed of qualified persons. The arbitral tribunal shall file with the arbitration association within three working days after its constitution the names of the parties, the seat of arbitration, the composition of the tribunal, and the arbitration rules.
- Provisions regarding the seat of arbitration have been added for foreign-related arbitrations. The seat of arbitration serves as a crucial basis for determining the governing law of the arbitration proceedings, evidence rules, the nationality of the arbitral award, and the court with jurisdiction. The amended Arbitration Law stipulates that parties to foreign-related arbitrations may agree in writing on the seat of arbitration. Unless otherwise agreed by the parties on the governing law of the arbitration proceedings, the seat of arbitration shall serve as the basis for determining the governing law of the arbitration proceedings and the court with jurisdiction. The arbitral award shall be deemed to have been made at the seat of arbitration. Where the parties have not agreed on the seat of arbitration or their agreement is unclear, the seat of arbitration shall be determined according to the arbitration rules agreed upon by the parties. Where the arbitration rules contain no provision, the arbitral tribunal shall determine the seat of arbitration based on the circumstances of the case and the principle of facilitating dispute resolution.
- The time limit for application for setting aside an arbitral award has been shortened. The amended Arbitration Law stipulates that a party applying to a Chinese People's Court for setting aside an award shall do so within three months from the date of receipt of the award (previously six months).
