Overview of the New Arbitration Law

On September 12, 2025, the 17th Session of the Standing Committee of the 14th National People's Congress voted to adopt the newly revised Arbitration Law of the People's Republic of China (hereinafter referred to as the New Arbitration Law), which will come into effect on March 1, 2026. This revision is the first comprehensive overhaul since the promulgation of the Arbitration Law in 1994. It systematically summarizes China's years of judicial practice in arbitration and is conducive to further enhancing the credibility and international competitiveness of arbitration in China. Below is a brief introduction to the main contents of this revision.

I. Confirming the Validity of Online Arbitration

Article 11 of the New Arbitration Law explicitly stipulates that arbitration activities may be conducted online via information networks, except where the parties expressly disagree. Although many arbitration institutions have already adopted online hearings in practice in recent years, this revision is the first to affirm the legal validity of online arbitration at the legislative level, granting parties the right to choose between online or offline proceedings based on the actual circumstances of the case. This provision sets online arbitration as the default method, with express opposition by the parties as the exception, thereby enhancing the efficiency and flexibility of arbitration procedures.

II. Improving the Arbitration Preservation Mechanism

Article 39 of the New Arbitration Law introduces a system for conduct preservation. It stipulates that if the actions of one party or other reasons may make it difficult to enforce the award or cause other harm to a party, that party may request an order compelling the other party to perform certain acts or prohibiting it from performing certain acts. Furthermore, this article establishes a pre-arbitration preservation system. In urgent circumstances, parties to an arbitration agreement may, before applying for arbitration, apply to the people's court for property preservation or for an order compelling or prohibiting certain acts in accordance with the relevant provisions of the Civil Procedure Law of the People's Republic of China. Where a party applies for preservation, the people's court shall handle it in a timely manner according to law. This system helps effectively prevent parties from dissipating assets and ensures the smooth enforcement of arbitration awards.

III. Establishing the Arbitrator Information Disclosure System

Article 45 of the New Arbitration Law stipulates that if an arbitrator has circumstances that may reasonably cause the parties to doubt his or her independence or impartiality, the arbitrator shall promptly disclose such circumstances in writing to the arbitration institution. The arbitration institution shall notify the parties in writing of the arbitrator's written disclosure and the composition of the arbitral tribunal. This system is an important mechanism for ensuring that arbitrators perform their duties independently and impartially, thereby enhancing the transparency and credibility of arbitration proceedings.

IV. Shortening the Time Limit for Applying to Set Aside an Arbitration Award

Article 72 of the New Arbitration Law reduces the time limit for a party to apply to set aside an arbitration award from the originally stipulated six months to three months, calculated from the date the party receives the award. This adjustment helps urge parties to exercise their rights promptly and strengthens the finality and stability of arbitration awards.

V. Introducing the Ad Hoc Arbitration System

According to Article 82 of the New Arbitration Law, China formally introduces the ad hoc arbitration system. It allows parties involved in foreign-related maritime disputes or foreign-related disputes between enterprises established and registered in specific areas such as pilot free trade zones to choose arbitrators who meet the specified conditions to form an arbitral tribunal and conduct arbitration according to agreed arbitration rules. This article also stipulates that the arbitral tribunal shall, within three working days after its formation, file with the arbitration association the names of the parties, the place of arbitration, the composition of the arbitral tribunal, and the arbitration rules. Compared to the previous mechanism strictly limited to institutional arbitration, the introduction of ad hoc arbitration significantly enhances the attractiveness of China's arbitration system in the field of international commercial dispute resolution.

The revision of the New Arbitration Law is based on the developmental needs of arbitration practice. Through innovative measures such as confirming online arbitration, improving preservation mechanism, and introducing ad hoc arbitration, it provides parties with more flexible and efficient dispute resolution pathways. These adjustments will help enhance the convenience and adaptability of arbitration procedures, allowing the arbitration system to better serve the needs of various market entities.