CHINA Law and Practice Contributed by: Paul Zhou and Leslie Shen, SGLA Law Firm
arbitration and later seeks to avoid the award). Chi - nese courts apply a strict and demanding standard for binding non-signatories to arbitration agreements or awards, requiring clear evidence of consent or equi - table estoppel. The 2025 Amendment represents the most significant reform to China’s arbitration framework since the orig - inal 1994 enactment. By introducing the competence- competence doctrine, the seat of arbitration concept, the evidence-taking assistance mechanism and lim - ited ad hoc arbitration for foreign-related disputes, the 2025 Amendment brings the Chinese arbitration framework into close alignment with international best practices, including the UNCITRAL Model Law on International Commercial Arbitration. The reforms enhance party autonomy, strengthen the powers of arbitral tribunals, streamline court supervision, and improve the enforceability and the final and conclusive nature of arbitral awards.
Practitioners advising on or conducting arbitration in China should familiarise themselves with the new pro - visions and update their arbitration clauses and case strategies accordingly. In particular, arbitration claus - es should expressly provide for the seat of arbitration, the governing law and the language of arbitration. For foreign-related disputes, parties may now consider ad hoc arbitration as a flexible and cost-effective alterna - tive to institutional arbitration. As Chinese institutions continue to modernise their rules and adopt digital and AI-assisted case management tools, and as the 2025 Arbitration Law reforms take full effect, China is poised to become a leading international arbitration seat in Asia. The 2025 Amendment marks the begin - ning of a new era for arbitration in China, with signifi - cant opportunities for practitioners and commercial parties alike.
253 CHAMBERS.COM
Powered by FlippingBook