CHINA Law and Practice Contributed by: Tim Yimin Liu, Sybil Xueting Yuan and Cassie Wenjing Li, Global Law Office
no deemed waiver has occurred, courts are usually reluctant to exercise jurisdiction. 5.6 Jurisdiction Over Third Parties In China, an arbitration agreement generally binds only the party to the arbitration agreement or the signatories to the contract containing the arbitra - tion agreement. However, under certain exceptional circumstances (including the following), the effect of an arbitration agreement may be extended to non- signatory third parties. • Merger or division of a party – Where rights and obligations are transferred in their entirety in a merger or division, the arbitration agreement remains binding on the successor entity. • Legal succession – Heirs are bound by an arbi - tration agreement previously entered into by the decedent in respect of inherited rights and obliga - tions. • Assignment of claims – Where the assignee is aware of the existing arbitration agreement between the assignor and the obligor at the time of assignment, the arbitration clause may remain binding on the assignee. • Indirect agency relationships – Where an agent enters into a contract on behalf of the principal, the arbitration agreement may be enforceable against the principal. • Contracts for the benefit of third parties – Where a third party acquires rights or undertakes obliga - tions under the contract for the benefit of third parties, the arbitration agreement may extend to that third party. • Subrogated claims in insurance disputes – If an insurer exercises subrogation rights under a non-foreign-related insurance contract, where the insured and a third party have reached an arbitra - tion agreement prior to the insured event, that agreement is enforceable against the insurer in subsequent proceedings. 6. Preliminary and Interim Relief 6.1 Types of Relief An arbitral tribunal has the right to grant an interim relief order (asset preservation, evidence preservation
or conduct preservation). However, to enforce such orders, they must be passed on by the arbitration institution to the court for enforcement. • In 2025, during an international arbitration admin - istered by the BAC on a technology development and services dispute, the arbitral tribunal issued interim relief measures per the claimant’s request. The Beijing No 4 Intermediate People’s Court sub - sequently further issued a preservation order and enforced the measures. • On 14 May 2025, the Shanghai International Com - mercial Court supported an evidence preservation request passed on by the SHIAC, based on interim measures granted by the arbitral tribunal. The court subsequently issued a judicial investigation order as assistance. 6.2 Role of Courts As noted in 6.1 Types of Relief , when a party applies for interim relief through a Chinese arbitration insti - tution or arbitral tribunal, the arbitration institution is required to pass on the application to a competent court, which will decide whether to grant the request - ed interim measures. In China, the court generally would not grant interim relief in aid of foreign-seated arbitrations due to a lack of legal basis (see, eg [2014] Hu Yi Zhong Chu No 2), except in limited circumstances explicitly allowed by Chinese laws – such as (i) in maritime arbitrations or (ii) arbitrations conducted under judicial assistance arrangements between Mainland China and Hong Kong or Macao. Interim Relief in Maritime Arbitration For maritime arbitration, if the property in dispute is located in China, parties may apply to a Chinese mari - time court at the location of the property for maritime preservation or injunction, even though the dispute is under the jurisdiction of a foreign court or arbitral institution. Judicial Assistance Arrangements With Hong Kong and Macao Mainland China – Hong Kong Parties in Hong Kong arbitration proceedings may apply to the mainland intermediate people’s court at
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