CHINA Trends and Developments Contributed by: Peibing Qi, Na Gao and Shanshan Heng, Fangda Partners
Fangda Partners 27/F, North Tower, Beijing Kerry Centre
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On 12 September 2025, the Standing Committee of the National People’s Congress deliberated and adopted the Amended Arbitration Law of the People’s Republic of China (the “New Arbitration Law”), which came into effect on 1 March 2026. This amendment marks the first comprehensive revi- sion of China’s Arbitration Law since its implementa- tion in 1995. It systematically summarises 30 years of arbitration practice experience and theoretical achievements, draws on internationally accepted arbitration rules, and introduces significant institu- tional improvements in areas such as foreign-related arbitration, arbitration support and safeguards, and judicial supervision of arbitration. The amendment has enhanced the credibility, international competitive- ness and attractiveness of China’s arbitration, signi- fying that China’s arbitration system and industry has entered a brand-new stage. Establishment of Online Arbitration Mechanism for the First Time In recent years, with the rapid development of the digital economy, many Chinese arbitration institu- tions have established online case management systems and have increasingly adopted online arbi- tration mechanisms including online case filing, elec- tronic service and online hearings. In 2024, 93 arbi- tration institutions in China handled online arbitration cases with a total disputed amount of approximately CNY300 billion. Online arbitration has now become a common feature of arbitration practice in China.
Article 11 of the New Arbitration Law introduces provi- sions on online arbitration for the first time and formally recognises the legal validity of online arbitration at the legislative level. It is closely aligned with the broader trend of digitalisation in commercial dispute resolution and with existing arbitration practice. It also facilitates foreign parties’ participation in arbitration proceedings in China and provides an important legal framework for the development of foreign-related arbitration. Notably, the amendment adopts an “implied consent” approach, stipulating that arbitration activities may be conducted online via information networks unless the parties expressly object. It is expected that Arbitration institutions are likely to refine their online arbitration rules in light of the New Arbitration Law in the future. Establishment of the Concept of Seat of Arbitration for the First Time The “seat of arbitration” is a fundamental concept in the field of international arbitration, as it directly deter- mines the law applicable to arbitration proceedings, the nationality of arbitral awards, and the courts with supervisory jurisdiction. China’s former Arbitration Law did not expressly rec- ognise the concept of the “seat of arbitration”. Long- standing judicial practice treated the “location of the arbitration institution” as the “seat of arbitration”, which created significant uncertainty in set-aside and enforcement proceedings involving awards rendered by foreign arbitral institutions in China. Although the Supreme People’s Court introduced the concept of the “seat of arbitration” in 2021 through the Minutes
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