CHINA Trends and Developments Contributed by: Peibing Qi, Na Gao and Shanshan Heng, Fangda Partners
has established the CIETAC Hong Kong Arbitration Center, CIETAC North American Arbitration Center and CIETAC European Arbitration Center overseas, and has become one of the leading permanent com- mercial arbitration institutions worldwide. The Beijing International Arbitration Commission (BIAC) and the Shanghai Arbitration Commission (SHAC) have also taken important steps toward internationalisation by establishing the BIAC Hong Kong Center and SHAC European Hub respectively in 2025, respectively. At the same time, China also actively supports for- eign arbitration institutions in establishing branches in China, with a view to enhancing the quality of foreign- related arbitration and further improving the business environment. In 2023, the Korean Commercial Arbitra- tion Board (KCAB) established its Shanghai Center, becoming the first foreign arbitration institution to set up an operational presence in Shanghai. In the same year, the World Intellectual Property Organiza- tion Arbitration and Mediation Center (WIPO AMC) established its Shanghai Center, becoming the first arbitration institution of an international organisation to establish operational presence in China. Article 86 of the New Arbitration Law further promotes this “going global” and “bringing in” approach. For the first time, it provides a legislative basis for Chinese arbitration institutions to establish overseas offices, and allows foreign arbitration institutions to estab- lish business operations in designated areas such as pilot free trade zones and the Hainan Free Trade Port. In addition, the New Arbitration Law has uniformly replaced the term “arbitration commission” with the broader term “arbitration institution”, thereby enhanc- ing inclusiveness towards different organisational forms (such as “courts of arbitration”) and further pro- viding an institutional framework for the introduction of foreign arbitration institutions.
The New Arbitration Law represents a major milestone in the development of China’s arbitration system with Chinese characteristics. It addresses a number of key issues arising from judicial practice, such as online arbitration, ad hoc arbitration and interim measures, and reflects the system’s increasing emphasis on innovation, inclusiveness and procedural fairness. By aligning with international trends in arbitration, the New Arbitration Law enhances the international competitiveness of China’s arbitration system. It is expected to promote further digitalisation, speciali- sation and internationalisation of arbitration in China, and to contribute to the development of a more stable, efficient and transparent arbitration and legal environ- ment. In doing so, it offers a distinct Chinese approach to international commercial dispute resolution.
120 CHAMBERS.COM
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