CHINA Law and Practice Contributed by: Paul Zhou and Leslie Shen, SGLA Law Firm
10.2 Types of Remedies The arbitral tribunal may grant the following reliefs: (i) monetary damages (compensation for proved loss and damage); (ii) specific performance (an order requiring a party to perform its contractual or other legal obligations); (iii) declaratory relief (a declaration of the rights or obligations of the parties); (iv) injunc - tive relief (conduct preservation under Article 39 of the 2025 Arbitration Law); and (v) an award of interest. Punitive damages are generally not available in arbi - tration unless expressly provided by applicable law (for example, in certain consumer protection or anti- monopoly contexts). The tribunal may also allocate costs, including arbitration fees and legal costs, in accordance with the institutional rules and the princi - ple that the unsuccessful party bears the costs, unless the tribunal determines otherwise having regard to the circumstances of the case. 10.3 Recovering Interest and Legal Costs The tribunal may award pre-award interest (from the date of breach or non-performance to the date of the award) and post-award interest (from the date of the award to the date of actual payment). The rate of inter - est may be agreed by the parties or, in the absence of agreement, determined by the tribunal having regard to the law governing the contract. If the parties do not agree on the interest rate, the tribunal may apply the Loan Prime Rate published by the People’s Bank of China or such other reasonable commercial rate as the tribunal considers appropriate. Legal costs include arbitration fees, counsel fees and reasonable out-of- pocket expenses. The 2025 Arbitration Law and insti - tutional rules provide for cost allocation on the basis that the losing party bears the costs, unless the tribu - nal determines otherwise having regard to the con - duct of the parties and other relevant circumstances.
In practice, confidentiality is subject to exceptions beyond those in the 2025 Arbitration Law. Listed companies must disclose significant arbitration cas - es under information disclosure rules. Confidentiality may be overridden by court orders in setting-aside or enforcement proceedings. Practitioners should advise clients of these exceptions when drafting confidential - ity provisions.
10. The Award 10.1 Legal Requirements
Under Article 67 of the 2025 Arbitration Law, an arbi - tral award must: (i) be made in writing; (ii) state the reasons on which it is based (unless the parties have agreed that no reasons are to be given, or the dispute has been settled by consent of the parties); (iii) be signed by the arbitrators and bear the seal of the arbi - tration institution; and (iv) state the date of the award. The award must also state the arbitration claims, the facts of the dispute, the reasons for the award, the outcome and the allocation of arbitration costs. If an arbitrator dissents from the majority decision, that arbitrator may sign or refrain from signing the award. The award takes legal effect from the date of its issu - ance (Article 70). The institution serves the award on the parties. The award becomes effective upon being signed by the arbitrators (or, in the case of a majority signature, upon the date of signature by the last arbitrator sign - ing). The institution serves the award on the parties. The 2025 Arbitration Law clarifies that the award is effective as of the date of signature by the majority of the tribunal, unless the parties have agreed otherwise. Institutional rules prescribe time limits for rendering awards. Under CIETAC Rules, the time limit is six months for standard procedures and three months for expedited procedures. For domestic arbitrations, the limit is four months, with possible extensions. The 2025 Arbitration Law leaves time limits to institutional rules and party agreement.
11. Review of an Award 11.1 Grounds for Appeal
Under Article 71 of the 2025 Arbitration Law, a par - ty may apply to the Intermediate People’s Court at the location of the arbitration institution to set aside the award. The application must be filed within three months of the date on which the award is received by the applicant, reduced from the previous six-month
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