China Overhauls Arbitration Law to Align with International Standards

On September 12, 2025, the Standing Committee of the 14th National People's Congress passed significant amendments to China's Arbitration Law, marking the first major revision since its enactment in 1995. The updated law is scheduled to take effect on March 1, 2026.

Key Changes

• Recognition of Kompetenz-Kompetenz: The amended law partially acknowledges the doctrine of kompetenz-kompetenz, allowing arbitral tribunals to determine their own jurisdiction. Previously, such challenges were solely addressed by arbitral institutions or courts.
• Introduction of Ad Hoc Arbitration: For the first time, ad hoc arbitration is permitted in certain foreign-related disputes, including maritime cases and disputes involving entities in Free Trade Pilot Zones and the Hainan Free Trade Port.
• Establishment of Arbitral Seat Concept: The law now recognizes the concept of an arbitral seat, clarifying the procedural law applicable to arbitration and the jurisdiction of supervisory courts.
• Interim Relief Measures: Parties can seek asset preservation orders or injunctive relief through arbitral institutions, which will forward applications to the courts. In urgent cases, direct applications to the courts are allowed before arbitration commences.
• Enhanced Arbitrator Disclosure Obligations: Arbitrators are required to disclose in writing any matters that may raise doubts about their independence or impartiality, with the arbitral institution informing the parties accordingly.
• Support for Online Arbitration: The law provides that, with party consent, arbitration can be conducted online, having equal legal effect as in-person proceedings.
• Reduced Time Limit for Setting Aside Awards: The deadline for applying to set aside an arbitral award has been shortened from six months to three months, enhancing the finality of arbitral decisions.

Implications

These amendments aim to modernize China's arbitration framework, aligning it more closely with international standards and practices. The changes are expected to enhance the attractiveness of China as a venue for international commercial arbitration, providing greater autonomy and clarity for parties involved in arbitration proceedings.

Legal practitioners and businesses engaged in arbitration in China should familiarize themselves with these developments to ensure compliance and to leverage the benefits offered by the reformed arbitration landscape.