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The Standing Committee of the National People’s Congress Order of the President of the People’s Republic of China No.31 Arbitration Law of the People’s Republic of China adopted by the 9th Meeting of the Standing Committee of the eighth National People’s President of the People’s Republic of China, Jiang Zemin August 31, 1994 Arbitration Law of the People’s Republic of China Chapter I General Provisions Article 1 The law is formulated with a view to ensure fair and timely arbitration of economic disputes, reliable protection to legitimate rights Article 2 Contractal disputes between citizens of equal status, legal persons and other economic organizations and disputes arising from property Article 3 The following disputes cannot be put to arbitration: 1. Disputes arising from marriage, adoption, guardianship, bringing up of children and inheritance. 2. Disputes that have been stipulated by law to be settled by administrative organs. Article 4 In settling disputes through arbitration, an agreement to engage in arbitration should first of all be reached by parties concerned Article 5 Whereas the parties concerned have reached an agreement for arbitration, the people’s court shall not accept the suit brought to the Article 6 The members of the arbitration commission shall be chosen by the parties concerned. Arbitration shall not be subject to the jurisdiction of administrative departments at any level and region. Article 7 Arbitration shall be made based on true facts and relative laws to give out a fair and reasonable settlement for parties concerned. Article 8 Arbitration shall be conducted independently according to law, free from interference of administrative organs, social groups or individuals. Article 9 The arbitration award is final. After the award is given, the arbitration commission or the people’s court shall not accept the re- Whereas the award cancelled or put in void under a rule by the people’s court, the parties concerned for the dispute may reach another Chapter II Arbitration Commission and Arbitration Association Article 10 An arbitration commission may be set up in the domicile of the people’s governments of municipalities directly under the Central Government An arbitration commission shall be set up by the relevant departments and chambers of commerce under the coordination of the people’s The establishment of an arbitration commission shall be registered with the judicial administrative departments of provinces, autonomous Article 11 An arbitration commission shall meet the following requirements: 1. It shall have its own name, residence and statute. 2. It shall have necessary property. 3. It shall have its own members. 4. It shall have appointed arbitrators. The statute of an arbitration commission shall be formulated according to this law. Article 12 An arbitration commission shall be composed of a chairman, two to four vice-chairmen and 7 to 11 members. The chairman, vice-chairmen and members of an arbitration commission shall be experts in law and economy and trade with practical Article 13 Members of an arbitration commission shall be appointed from among the people who are fair and justice. An arbitrator shall meet one of the following requirements: 1. At least eight years of work experience in arbitration. 2. At least eight years of experience as a lawyer. 3. At least eight years of experience as a judge. 4. Engaging in law research and teaching, with a senior academic post_title. An arbitration commission shall prepare the list of arbitrators according to different specialties. Article 14 An arbitration commission shall be independent of any administrative organ, without any subordinate relationship with administrative Article 15 The China Arbitration Association is an institutional legal person with all the separate arbitration commissions as its members. The The China Arbitration Association is a self-disciplinary organization for arbitration commissions to supervise over the latters and The China Arbitration Association shall formulate arbitration rules according to this law and the civil procedure law. Chapter III Agreement for Arbitration Article 16 An agreement for arbitration shall include the arbitration clauses stipulated in the contracts or other written agreements for arbitration An arbitration agreement shall contain the following: 1. The expression of application for arbitration. 2. Matters for arbitration. 3. The arbitration commission chosen. Article 17 An agreement for arbitration shall be invalid in one of the following cases: 1. The matters agreed for arbitration exceed the scope of arbitration provided by law. 2. Agreements concluded by people being incapable or restricted in civil acts. 3. An agreement forced upon a party by the other party by means of coercion. Article 18 Whereas an agreement for arbitration fails to specify or specify clearly matters concerning arbitration or the choice of arbitration Article 19 The effect of an agreement for arbitration shall stand independently and shall not be affected by the alteration, dissolution, termination An arbitration tribunal has the right to establish the validity of a contract. Article 20 Whereas parties concerned have doubt on the validity of an agreement for arbitration, a request can be made to the arbitration commission A doubt to the effectiveness of an arbitration agreement should be raised before the first hearing at the arbitration tribunal. Chapter IV Arbitration Procedure Section I Application and Acceptance Article 21 The parties concerned should meet the following requirements in applying for arbitration: 1. There is an agreement for arbitration. 2. There are specific requests for arbitration and facts and reasons. 3. The matters to be pure to arbitration shall fall into the limits of the authority of the arbitration commission. Article 22 In applying for arbitration, the parties concerned shall submit the agreement and the application for arbitration and their copies. Article 23 The application for arbitration shall specify the following matters: 1. Name, sex, age, profession, work unit and residence of parties concerned; the name, residence of legal persons or other organizations 2. The claimants’ claim and the facts and evidence on which the claim is based. 3. Evidence and sources of evidence and name and residence of witnesses. Article 24 An arbitration commission shall accept the application within five days after the application is received if it deems the application Article 25 After an arbitration commission has accepted an arbitration application, it shall deliver the arbitration rules and the list of the After the respondent has received the copy of the application for arbitration, the aforesaid respondent shall file a counter-claim Article 26 When parties concerned have reached an agreement for arbitration but one party brings a suit in the people’s court without notifying Article 27 A claimant may give up or alter its claims. The respondent may acknowledge or refute the claims and has the right to raise counter- Article 28 Whereas due to the acts of the other party or other reasons, the arbitration award cannot be or is hard to be executed, the parties Whereas a claimant has applied for custody to the property, the arbitration commission shall, according to the relevant provisions Whereas there are errors in the application, the claimant shall compensate to the respondent for the losses arising from the custody Article 29 The parties concerned or legal attorneys may entrust lawyers or other attorneys to handle matters relating to arbitration. In the Section II Composition of Arbitration Tribunal Article 30 An arbitration tribunal may be composed of three arbitrators or one arbitrator. In the case of three arbitrators, there should be Article 31 Whereas the parties concerned agree that the arbitration tribunal is composed of three arbitrators, each of them shall chose one arbitrator Article 32 Whereas the parties concerned fail to decide on the composition of the arbitration tribunal or fail to choose arbitrators within the Article 33 After the formation of an arbitration tribunal, the arbitration commission shall notify in writing the composition of the arbitration Article 34 An arbitrator shall be withdrawn and the parties concerned have the right to request withdrawal, whereas: 1. The arbitrator is a party involved in the case or a blood relation or relative of the parties concerned or their attorneys. 2. the arbitrator has vital personal interests in the case. 3. the arbitrator has other relations with the parties or their attorneys involved in the case that might effect the fair ruling of the 4. the arbitrator meets the parties concerned or their attorneys in private or has accepted gifts or attended banquets hosted by the Article 35 In requesting for withdrawal, the parties concerned shall state reasons before the first hearing of the tribunal. If the reasons are Article 36 The withdrawal of an arbitrator shall be decided upon by the chairman of the arbitration commission. Whereas the chairman of the arbitration Article 37 Whereas an arbitrator is withdrawn or unable to perform his duty due to other reasons, another arbitrator shall be chosen Whereas re-selection or re-appointment of an arbitrator is made due to withdrawal, the parties concerned may apply for the re-start Article 38 Whereas a case provided for in 4. of Article 34 of this law is found with an arbitration and the case is very serious or a case provided Section III Hearing and Ruling Article 39 An arbitration tribunal shall hold oral hearings to hear a case. Whereas the parties concerned agree not to hold oral hearings, the Article 40 The arbitration tribunal may not hear a case in open sessions. But when parties concerned agree to have the case heard in open sessions, Article 41 The arbitration commission shall notify the parties concerned the date of hearing within the time limit prescribed in the arbitration Article 42 Whereas a claimant is absent from the hearing without justifiable reasons after receiving the written notice or withdraws from hearing Whereas a respondent is absent from the hearing without justifiable reasons after receiving the written notice or withdraws from hearing Article 43 The parties concerned shall provide evidence to support their respective claims. Whereas an arbitration tribunal deems it necessary to collect evidence, it may collect it on its own initiative. Article 44 Whereas an arbitration tribunal deems it necessary to have the specialized issues appraised, it may submit them to the appraisal department At the request of the parties concerned or of the arbitration tribunal, the appraisal department shall send appraisers to the hearing. Article 45 Evidence shall be produced during the course of hearing and the parties concerned may question or substantiate their evidence. Article 46 Whereas evidences are vulnerable to be destroyed or missing and would be heard to be recovered, the parties concerned may apply to Article 47 The parties concerned have the right to debate during the process of hearing. At the end of the debate, the chief arbitrator or the Article 48 The arbitration tribunal shall record the hearings in writing. Whereas the parties concerned or other people involved in the arbitration The written records of the hearings shall be signed or affixed with seals by the arbitrators, minute keepers, the parties concerned Article 49 After the parties have applied for arbitration, they may reach reconciliation on their own initiative. Whereas a reconciliation agreement Article 50 Whereas the parties concerned have gone back on their word after they have reached a reconciliation agreement, they may apply for Article 51 The arbitration tribunal may re-conciliate a case before passing the award. Whereas the parties concerned accept the reconciliation Whereas an agreement is reached through reconciliation, the arbitration tribunal shall compile the reconciliation document or make Article 52 The document of reconciliation shall specify the arbitration claims and the result of the agreement between the parties concerned. The document of reconciliation becomes legally binding immediately upon received by parties concerned. If any party concerned has gone back on his word after receiving the document of reconciliation, the arbitration tribunal shall make Article 53 An arbitral award shall be decided by the majority of the arbitrators and the views of the minority can be written down in the record. Article 54 The arbitral award shall specify the arbitration claims, facts in disputes, reasons for the award, result of the award, arbitration Article 55 In arbitrating disputes, the arbitration tribunal may pass the ruling on part of the facts that have already been made clear. Article 56 An arbitration tribunal should correct the errors involving context or computation and add things that have been omitted in the rulings Article 57 The arbitral award takes legal effect upon its issuing. Chapter V Application for Canceling Arbitral Ruling Article 58 If parties concerned have evidences to substantiate one of the following, they may apply for the cancellation of arbitral award with 1. There is no agreement for arbitration. 2. The matters ruled are out the scope of the agreement for arbitration or the limits of authority of an arbitration commission. 3. The composition of the arbitration tribunal or the arbitration proceedings violate the legal proceedings. 4. The evidences on which the ruling is based are forged. 5. Things that have an impact on the impartiality of ruling have been discovered concealed by the opposite party. 6. Arbitrators have accepted bribes, resorted to deception for personal gains or perverted the law in the ruling. The people’s court shall form a collegial bench to verify the case. Whereas one of the aforesaid cases should be found, arbitral award Whereas the people’s court establishes that an arbitral award goes against the public interests, the award should be cancelled by Article 59 An application filed by the parties concerned for the cancellation of an arbitral award should be sent within six months starting Article 60 The people’s court should rule to cancel the award or reject the application within two months after the application for cancellation Article 61 After the people’s court has accepted an application for the cancellation of an arbitral award and deems it necessary for the arbitration Chapter VI Enforcement Article 62 The parties concerned shall execute the arbitral award. If one of the parties refuses to execute the award, the other party may apply Article 63 If the respondent has produced evidences to substantiate one of the following cases provided for in the second paragraph of Article Article 64 Whereas one party applies for an enforcement while the other applies for a cancellation of a award, the people’s court shall order Whereas the people’s court has ordered the cancellation of an award, it should also order the termination of performance of the award. Chapter VII Special Provision on Arbitration Involving Foreign Interests Article 65 The provisions in this chapter apply to arbitration of disputes arising from foreign economic cooperation and trade, transportation Article 66 Foreign arbitration commissions may be formed by the China International Chamber of Commerce. A foreign arbitration commission is composed of a chairman, a number of vice-chairmen and members. The chairman, vice-chairmen and members of a foreign arbitration commission shall be appointed by the China International Chamber Article 67 Members of a foreign arbitration commission may appoint arbitrators from among foreign nationals with specialized knowledge in law, Article 68 Whereas the parties involved in a foreign arbitration case apply for the custody of evidences, the foreign arbitration commission Article 69 The foreign arbitration tribunal may write down its hearings on records or summary of records. The records shall be signed or affixed Article 70 Whereas the claimant has produced evidences to substantiate one of the cases as provided for in the first paragraph of Article 260 Article 71 Whereas the respondent has produced evidences to substantiate one of the cases as provided for in the first paragraph of Article 260 Article 72 Whereas a party involved in a foreign arbitration case applies for the enforcement of the award that has taken legal effect, the party Article 73 The rules for foreign arbitration shall be formulated by the China International Chamber of Commerce according to this law and the Chapter VIII Supplementary Provisions Article 74 Whereas there is a limited effective period for the arbitration stipulated in the law, the limit shall apply. Whereas there is not Article 75 Before the China Arbitration Association has formulated arbitration rules, arbitration commissions may formulate interim rules for Article 76 Parties concerned shall pay arbitration fees according to provisions. The schedule of arbitration fees shall be submitted for approval by the pricing administrative department. Article 77 The arbitration of labor disputes and disputes arising from the farm work contract inside the collective agricultural organizations Article 78 Whereas the relevant arbitration regulations formulated before the enforcement of this law come into conflict with the provisions Article 79 The arbitration organization set up in cities where the people’s governments of the municipalities, provinces and autonomous regions Other arbitration organizations set up before the implementation of this law and are not in conformity to the provisions of this law Article 80 The law shall enter into force as of September 1, 1995. Relevant Provisions of the Civil Procedure Law Article 217 Whereas the party against whom the application is made provides evidences which have proved that the arbitration award involves any 1. The parties have not stipulated clauses on arbitration in the contracts, or have not subsequently reached a written agreement for 2. Matters proposed for arbitration are out of scope of the agreement for arbitration or the limits of authority of the arbitration agency; 3. The composition of the arbitration division or the procedure for arbitration is not in conformity with the legal procedure; 4. The main evidences are not sufficient to substantiate the facts; 5. There are errors in the cited law; or 6. The arbitrators committed acts of malpractice for personal benefits and perverted the law in the arbitration of the case. Article 260 Whereas the person against whom the application is made provides evidences which prove that the arbitration award made by the foreign 1. The parties concerned have not stipulated clauses on arbitration in the contract or have not subsequently reached a written agreement 2. The person against whom the application is made is not duly notified to appoint the arbitrator or to proceed with the arbitration, 3. The composition of the arbitration division or the procedure for arbitration is not in conformity with the rules of arbitration; or 4. Matters for arbitration are out of the scope of the agreement for arbitration or the limits of authority of the arbitration agency. |
