CHINA Law and Practice Contributed by: Paul Zhou and Leslie Shen, SGLA Law Firm
1. General 1.1 Prevalence of Arbitration
the enforceability of arbitral awards under the Conven - tion on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”), to which China has been a contracting state since 1987. Data for 2024 illustrates the growth trajectory. CIETAC registered 758 new foreign-related cases in 2024, a 17.52% year-on-year increase, with the total disput - ed amount reaching CNY81.125 billion (up 53.75%). The SCIA handled 520 international cases in 2024 (up 25.6%), including one record-breaking dispute exceeding CNY30 billion. BAC/BIAC and SHIAC reported 10.36% and 40.46% increases in foreign- related cases respectively. Foreign-related commercial arbitration in China has grown substantially since the launch of the Belt and Road Initiative in 2013. CIETAC reported that foreign- related cases accounted for 18% of its total case - load in 2023, involving parties from 72 countries and regions. The 2025 Amendment, by introducing the internationally recognised concept of the seat of arbitration and permitting ad hoc arbitration in for - eign-related disputes, is widely expected to enhance China’s attractiveness as a seat for international arbi - tration and to encourage offshore parties to designate Chinese seats in their arbitration agreements. BAC/BIAC reported that in 2025 the average dura - tion from case registration to final award in interna - tional cases was 132 days, compared with an average of 198 days for first-instance litigation in the Beijing Fourth Intermediate People’s Court, highlighting the efficiency advantage of arbitration. SHIAC’s 2025 Annual Report discloses that 38.2% of its new international caseload involved parties from Belt and Road Initiative jurisdictions, reflecting the deepening integration of Chinese arbitration with international infrastructure and trade projects. 1.2 Key Industries The sectors most frequently represented in interna - tional commercial arbitration in China are: (i) interna - tional trade and the sale of goods; (ii) construction and infrastructure projects; (iii) banking, finance and insur - ance; (iv) corporate and mergers-and-acquisitions disputes; (v) shipping and maritime commerce; (vi)
This article provides a comprehensive overview of international arbitration law and practice in the Peo - ple’s Republic of China (PRC or “China”) as of 2026, against the background of the comprehensive revi - sion of the PRC Arbitration Law (the “Arbitration Law”) promulgated on 12 September 2025 (the “2025 Arbi - tration Law” or “2025 Amendment”), which entered into force on 1 March 2026. The 2025 Amendment represents the most significant reform to China’s arbi - tration framework since the original 1994 enactment, introducing a series of institutional and procedural innovations that bring Chinese arbitration law into close alignment with international standards, includ - ing the UNCITRAL Model Law on International Com - mercial Arbitration. The key reforms examined in this article include: the competence-competence doctrine (Article 31); the concept of the seat of arbitration; the evidence-taking assistance mechanism (Article 55); limited ad hoc arbitration for foreign-related maritime disputes or foreign-related disputes arising between enterprises registered within free trade pilot zones or Hainan Free Trade Port (Article 82); and the shortened time limit for setting-aside applications (three months, Article 72). All content reflects the 2025 Arbitration Law and the most recent institutional rules as current in 2026. Arbitration is the predominant method of extrajudicial international commercial dispute resolution in China. According to the China International Economic and Trade Arbitration Commission (CIETAC) 2023 Annual Report, CIETAC accepted 4,185 new cases in 2023, with a total disputed amount of CNY123.6 billion (approximately USD17.2 billion). The Beijing Arbi - tration Commission/Beijing International Arbitration Center (BAC/BIAC) accepted 7,312 cases in 2023, with a total disputed amount of CNY86.9 billion. The Shanghai International Economic and Trade Arbitra - tion Commission (SHIAC) and the Shenzhen Court of International Arbitration (SCIA) also reported steady growth in caseloads. The popularity of arbitration among domestic and international commercial parties rests on several recognised advantages: institutional neutrality; procedural flexibility; confidentiality; the final and conclusive nature of awards; and, critically,
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