CHINA Law and Practice Contributed by: Paul Zhou and Leslie Shen, SGLA Law Firm
13. Miscellaneous 13.1 Class Action or Group Arbitration Chinese arbitration law does not expressly provide for class arbitration or group arbitration. Institutional rules (for example, CIETAC Rules) permit multiparty arbitra - tion but do not provide for class-wide representative arbitration. The 2025 Arbitration Law does not intro - duce class arbitration, maintaining the requirement that all parties to the arbitration must have consented to the arbitration agreement. Group arbitration (in which a representative brings claims on behalf of a defined group) is not available in Chinese arbitration, although multiparty arbitration in complex construc - tion or joint venture disputes is common and well pro - vided for in institutional rules. 13.2 Ethical Codes Arbitrators are subject to ethical codes issued by arbitral institutions and the China Arbitration Asso - ciation. The codes typically require: (i) impartiality and independence; (ii) ongoing disclosure of conflicts of interest; (iii) diligence and efficiency in the conduct of proceedings; and (iv) maintenance of confidential - ity. The 2025 Arbitration Law references these ethical standards and provides for sanctions in cases of arbi - trator misconduct, including removal, liability to pay compensation, and disqualification from serving as an arbitrator in the future. Major institutions have adopted detailed ethical rules, and failure to comply may result in disciplinary action by the institution. 13.3 Third-Party Funding Third-party funding of arbitration is not expressly reg - ulated by national law in China but is widely practised in international arbitration involving Chinese parties. Institutional rules (for example, CIETAC Rules, Arti - cle 48) require the disclosure of third-party funding arrangements to ensure arbitrator impartiality and avoid conflicts of interest. The 2025 Arbitration Law does not directly address third-party funding, leaving the matter to institutional rules and future SPC judi - cial interpretations. The principal concerns relating to third-party funding are the potential impact on arbitra - tor impartiality (if the funder has a relationship with an arbitrator) and the enforceability of cost awards (if the funded party lacks the financial means to satisfy an
adverse cost award). Disclosure requirements are the primary regulatory tool currently employed. Third-party funding of arbitration has gained increas - ing attention in China, particularly in the context of high-value international commercial disputes. The 2025 Arbitration Law does not expressly regulate third-party funding, but several leading institutions have introduced disclosure requirements in their rules. The regulatory framework for third-party fund - ing remains underdeveloped, and further legislative or regulatory action may be expected as third-party funding becomes more prevalent in China-seated arbitrations. 13.4 Consolidation Consolidation of separate arbitrations is permitted if: (i) the parties agree to consolidation; or (ii) the arbi - trations involve the same subject matter or closely related subject matters, and the tribunal determines that consolidation is appropriate to avoid conflicting awards and to promote efficiency. Institutional rules (for example, CIETAC Rules, Article 19) provide for consolidation in multi-contract or multiparty disputes. The 2025 Arbitration Law does not itself regulate con - solidation, which remains governed by institutional rules: under Article 19 of the CIETAC Rules 2024, CIETAC may consolidate two or more arbitrations where the claims are made under the same arbitration agreement, under identical or compatible arbitration agreements in related multiple-contract disputes, or with the consent of all parties. Consolidation is par - ticularly valuable in complex construction, infrastruc - ture and investment disputes involving multiple con - tracts and multiple parties. 13.5 Binding of Third Parties As a general principle, an arbitration agreement and the resulting award bind only the signatories. Non- signatory third parties may be bound in limited cir - cumstances, such as: (i) assignment or novation of the contract (the assignee or novatee is bound by the arbitration clause); (ii) piercing the corporate veil (in cases of abuse of corporate form to avoid arbitra - tion obligations); (iii) agency (where the agent had actual or apparent authority to bind the principal to the arbitration agreement); or (iv) equitable estoppel (where a non-signatory actively participates in the
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