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Adopted at the 8th Session of the Standing Committee of the 8th
National People's Congress and promulgated on August 31, 1994
Chapter I General Provisions
Article 1
This Law is formulated in order to ensure that economic
disputes shall be impartially and promptly arbitrated, to
protect the legitimate rights and interests of the relevant
parties and to guarantee the healthy development of the
socialist market economy.
Article 2
Disputes over contracts and disputes over property rights and
interests between citizens, legal persons and other
organizations as equal subjects of law may be submitted to
arbitration.
Article 3
The following disputes shall not be submitted to arbitration:
1. disputes over marriage, adoption, guardianship, child
maintenance and inheritance; and
2. administrative disputes falling within the jurisdiction of
the relevant administrative organs according to law.
Article 4
The parties adopting arbitration for dispute settlement shall
reach an arbitration agreement on a mutually voluntary basis. An
arbitration commission shall not accept an application for
arbitration submitted by one of the parties in the absence of an
arbitration agreement.
Article 5
A people's court shall not accept an action initiated by one
of the parties if the parties have concluded an arbitration
agreement, unless the arbitration agreement is invalid.
Article 6
An arbitration commission shall be selected by the parties by
agreement.
The jurisdiction by level system and the district jurisdiction
system shall not apply in arbitration.
Article 7
Disputes shall be fairly and reasonably settled by arbitration
on the basis of facts and in accordance with the relevant
provisions of law.
Article 8
Arbitration shall be conducted in accordance with the law,
independent of any intervention by administrative organs, social
organizations or individuals.
Article 9
The single ruling system shall be applied in arbitration. The
arbitration commission shall not accept any application for
arbitration, nor shall a people's court accept any action
submitted by the party in respect of the same dispute after an
arbitration award has already been given in relation to that
matter.
If the arbitration award is canceled or its enforcement has
been disallowed by a people's court in accordance with the law,
the parties may, in accordance with a new arbitration agreement
between them in respect of the dispute, re-apply for arbitration
or initiate legal proceedings with the people's court.
Chapter II Arbitration Commissions and Arbitration Association
Article 10
Arbitration commissions may be established in the
municipalities directly under the Central Government, in the
municipalities where the people's governments of provinces and
autonomous regions are located or, if necessary, in other cities
divided into districts. Arbitration commissions shall not be
established at each level of the administrative divisions. The
people's governments of the municipalities and cities specified
in the above paragraph shall organize the relevant departments
and the Chamber of Commerce for the formation of an arbitration
commission. The establishment of an arbitration commission shall
be registered with the judicial administrative department of the
relevant province, autonomous region or municipalities directly
under the Central Government.
Article 11
An arbitration commission shall fulfill the following
conditions:
1. it must have its own name, domicile and Articles of
Association;
2. it must possess the necessary property;
3. it must have its own members; and
4. it must have arbitrators for appointment.
The articles of association of the an arbitration commission
shall be
formulated in accordance with this Law.
Article 12
An arbitration commission shall comprise a chairman, two to
four vice-chairmen and seven to eleven members. The chairman,
vice-chairmen and members of an arbitration commission must be
persons specialized in law, economic and trade and persons who
have actual working experience. The number of specialists in
law, economic and trade shall not be less than two-thirds of the
members of an arbitration association.
Article 13
The arbitration commission shall appoint fair and honest
person as its arbitrators. Arbitrators must fulfill one of the
following conditions:
1. they have been engaged in arbitration work for at least
eight years;
2. they have worked as a lawyer for at least eight years;
3. they have been a judge for at least eight years;
4. they are engaged in legal research or legal teaching and in
senior
positions; and
5. they have legal knowledge and are engaged in professional
work relating to economics and trade, and in senior positions or
of the equivalent professional level. The arbitration commission
shall establish a list of arbitrators according to different
professionals.
Article 14
Arbitration commissions are independent of administrative
organs and there are no subordinate relations with any
administrative organs nor between the different arbitration
commissions.
Article 15
The China Arbitration Association is a social organization
with the status of a legal person. Arbitration commissions are
members of the China Arbitration Association. The Articles of
Association of the China Arbitration Association shall be
formulated by the national general meeting of the members. The
China Arbitration Association is an organization in charge of
self-regulation of the arbitration commissions. It shall conduct
supervision over the conduct (any breach of discipline) of the
arbitration commissions and their members and arbitrators in
accordance with its articles of association. The China
Arbitration Association shall formulate Arbitration Rules in
accordance with this Law and the Civil Procedure Law.
Chapter III Arbitration Agreement
Article 16
An arbitration agreement shall include the arbitration clauses
provided in the contract and any other written form of agreement
concluded before or after the disputes providing for submission
to arbitration.
The following contents shall be included in an arbitration
agreement:
1. the expression of the parties' wish to submit to
arbitration;
2. the matters to be arbitrated; and
3. the Arbitration Commission selected by the parties.
Article 17
An arbitration agreement shall be invalid under any of the
following circumstances:
1. matters agreed upon for arbitration are beyond the scope of
arbitration prescribed by law;
2. an arbitration agreement concluded by persons without or
with limited capacity for civil acts; and
3. one party forces the other party to sign an arbitration
agreement by means of duress.
Article 18
If the arbitration matters or the arbitration commission are
not agreed upon by the parties in the arbitration agreement, or,
if the relevant provisions are not clear, the parties may
supplement the agreement. If the parties fail to agree upon the
supplementary agreement, the arbitration agreement shall be
invalid.
Article 19
An arbitration agreement shall exist independently. Any
changes to, rescission, termination or invalidity of the
contract shall not affect the validity of the arbitration
agreement. An arbitration tribunal has the right to rule on the
validity of a contract.
Article 20
If the parties object to the validity of the arbitration
agreement, they may apply to the arbitration commission for a
decision or to a people's court for a ruling. If one of the
parties submits to the arbitration commission for a decision,
but the other party applies to a people's court for a ruling,
the people's court shall give the ruling.
If the parties contest the validity of the arbitration
agreement, the objection shall be made before the start of the
first hearing of the arbitration tribunal.
Chapter IV Arbitration Procedure
Section 1: Application and Acceptance for Arbitration
Article 21
The parties applying for arbitration shall fulfill the
following conditions:
1. they must have an arbitration agreement;
2. they must have a specific claim with facts and argument on
which the claim is based; and
3. the arbitration must be within the jurisdiction of the
arbitration commission.
Article 22
The party applying for arbitration shall submit to an
arbitration commission the arbitration agreement, an application
for arbitration and copies thereof.
Article 23
An arbitration application shall state clearly the following:
1. the name, sex, age, occupation, work unit and address of
the party, the name address and legal representative of the
legal person or other organization and the name and position of
its person-in charge;
2. the arbitration claim and the facts and argument on which
the claim is based; and
3. evidence and the source of evidence, the name and address
of the witness(es).
Article 24
Within 5 days from the date of receiving the arbitration
application, the arbitration commission shall notify the parties
that it considers the conditions for acceptance have been
fulfilled, and that the application is accepted by it. If the
arbitration commission considers that the conditions have not
been fulfilled, it shall notify the parties in writing of its
rejection, stating its reasons.
Article 25
Upon acceptance of an arbitration application, the arbitration
commission shall, within the time limit provided by the
Arbitration Rules, serve a copy of the Arbitration Rules and the
list of arbitrators on the applicant, and serve a copy of the
arbitration application, the Arbitration Rules and the list of
arbitrators on the respondent. Upon receipt of a copy of the
arbitration application, the respondent shall, within the time
limit prescribed by the Arbitration Rules, submit its defense to
the arbitration commission. Upon receipt of the defense, the
arbitration commission shall, within the time limit prescribed
by the Arbitration Rules, serve a copy of the reply on the
applicant. The failure of the respondent to submit a defense
shall not affect the proceeding of the arbitration procedures.
Article 26
Where the parties had agreed on an arbitration agreement, but
one of the parties initiates an action before a people's court
without stating the existence of the arbitration agreement, the
people's court shall, unless the arbitration agreement is
invalid, reject the action if the other party submits to the
court the arbitration agreement before the first hearing of the
case. If the other party fails to object to the hearing by the
people's court before the first hearing, the arbitration
agreement shall be considered to have been waived by the party
and the people's court shall proceed with the hearing.
Article 27
The applicant may abandon or alter his arbitration claim. The
respondent may accept the arbitration claim or object to it. It
has a right to make a counterclaim.
Article 28
A party may apply for property preservation if, as the result
of an act of the other party or for some other reasons, it
appears that an award may be impossible or difficult to enforce.
If one of the parties applies for property preservation, the
arbitration commission shall submit to a people's court the
application of the party in accordance with the relevant
provisions of the Civil Procedure Law. If a property
preservation order is unfounded, the applicant shall compensate
the party against whom the order was made for any losses
sustained as a result of the implementation of the property
preservation order.
Article 29
The parties and their legal representatives may appoint
lawyers or engage agents to handle matters relating to the
arbitration. In the event that a lawyer or an agent is appointed
to handle the arbitration matters, a letter of authorization
shall be submitted to the arbitration commission.
Section 2: Composition of the Arbitration Tribunal
Article 30
An arbitration tribunal may comprise three arbitrators or one
arbitrator. If an arbitration tribunal comprises three
arbitrators, a presiding arbitrator shall be appointed.
Article 31
If the parties agree to form an arbitration tribunal
comprising three arbitrators, each party shall select or
authorize the chairmen of the arbitration commission to appoint
one arbitrator. The third arbitrator shall be selected jointly
by the parties or be nominated by the chairman of the
arbitration commission in accordance with a joint mandate given
by the parties. The third arbitrator shall be the presiding
arbitrator. If the parties agree to have one arbitrator to form
an arbitration tribunal, the arbitrator shall be selected
jointly by the parties or be nominated by the chairman of the
arbitration commission in accordance with a joint mandate given
by the parties.
Article 32
If the parties fail, within the time limit prescribed by the
Arbitration Rules, to select the form of the constitution of the
arbitration tribunal or fail to select the arbitrators, the
arbitrators shall be appointed by the chairman of the
arbitration commission.
Article 33
After the arbitration tribunal is constituted, the arbitration
commission shall notify the parties in writing of the
composition of the arbitration tribunal.
Article 34
In any of the following circumstances, an arbitrator must
withdraw from the arbitration, and the parties shall have the
right to apply for his withdrawal if he:
1. is a party or a close relative of a party or of a party's
representative;
2. is related in the case;
3. has some other relationship with a party to the case or
with a party's agent which could possibly affect the
impartiality of the arbitration;
4. meets a party or his agent in private, accepts an
invitation for dinner by a party or his representative or
accepts gifts presented by any of them.
Article 35
When applying for the withdrawal of an arbitrator, the
petitioning party shall state his reasons and submit a
withdrawal application before the first hearing. A withdrawal
application may also be submitted before the conclusion of the
last hearing if reasons for the withdrawal only became known
after the start of the first hearing.
Article 36
Whether an arbitrator is withdrawn or not shall be determined
by the chairman of the arbitration commission. If chairman is
serving as an arbitrator, the withdrawal or not shall be
determined collectively by the arbitration commission.
Article 37
If an arbitrator is unable to perform his duties as an
arbitrator as a result of the withdrawal or any other reasons,
another arbitrator shall be selected or appointed in accordance
with the provisions of this Law. After a replaced arbitrator has
been selected or appointed following the withdrawal of an
arbitrator, the parties may apply to resume the arbitration
procedure. The arbitration tribunal shall determine whether the
resumption of the procedure may be allowed. The arbitration
tribunal may determine on its own whether the arbitration
procedure shall be resumed.
Article 38
An arbitrator involved in one of the circumstances described
in Item 4, Article 34, if it is serious, or those described in
Item 6, Article 58, such arbitrator shall be legally liable in
accordance with the law. The arbitration commission shall remove
his name from the list of arbitrators.
Section 3: Hearing and Arbitral Awards
Article 39
An arbitration tribunal shall hold a tribunal session to hear
an arbitration case. If the parties agree not to hold a hearing,
the arbitration tribunal may render an award in accordance with
the arbitration application, the defence statement and other
documents.
Article 40
An arbitration shall not be conducted in public. If the
parties agree to a public hearing, the arbitration may proceed
in public, except those concerning state secrets.
Article 41
The arbitration commission shall notify the two parties within
the time limit provided by the Arbitration Rules of the date of
the hearing. Either party may request to postpone the hearing
with in the time limit provided by the Arbitration Rules if
there is a genuine reason. The arbitration tribunal shall decide
whether to postpone the hearing.
Article 42
If the applicant for arbitration who has been given a notice
in writing does not appear before the tribunal without good
reasons, or leaves the tribunal room during a hearing without
the permission of the arbitration tribunal, such applicant shall
be deemed as having withdrawn his application. If the party
against whom the application was made was served with a notice
in writing but does not appear before the tribunal without due
reasons or leaves the tribunal room during a hearing without the
permission of the arbitration tribunal, an award by default may
be given.
Article 43
The parties shall produce evidence in support of their claims.
An arbitration tribunal may collect on its own evidence it
considers necessary.
Article 44
For specialized matters, an arbitration tribunal may submit
for appraisal to an appraisal organ agreed upon by the parties
or to the appraisal organ appointed by the arbitration tribunal
if it deems such appraisal to be necessary. According to the
claim of the parties or the request of the arbitration tribunal,
the appraisal organ shall appoint an appraiser to participate in
the hearing. Upon the permission of the arbitration tribunal,
the parties may question the appraiser.
Article 45
Any evidence shall be produced at the start of the hearing.
The parties may challenge the validity of such evidence.
Article 46
In the event that the evidence might be destroyed or if it
would be difficult to obtain the evidence later on, the parties
may apply for the evidence to be preserved. If the parties apply
for such preservation, the arbitration commission shall submit
the application to the basic-level people's court of the place
where the evidence is located.
Article 47
The parties have the right to argue during an arbitration
procedure. At the end of the debate, the presiding arbitrator or
the sole arbitrator shall ask for the final opinion of the
parties.
Article 48
An arbitration tribunal shall make a written record of the
hearing. If the parties or other participants to the arbitration
consider that the record has omitted a part of their statement
or is incorrect in some other respect, they shall have the right
to request correction thereof. If no correction is made, the
request for correction shall be noted in the written record. The
arbitrators, recorder, parties and other participants to the
arbitration shall sign or affix their seals to the record.
Article 49
After the submission of an arbitration application, the
parties may settle the dispute among themselves through
conciliation. If a conciliation agreement has been reached, the
parties may apply to the arbitration tribunal for an award based
on the conciliation agreement. Then may also withdraw the
arbitration application.
Article 50
If the parties fall back on their words after the conclusion
of a conciliation agreement and the withdrawal of the
arbitration application, application may be made for arbitration
in accordance with the arbitration agreement.
Article 51
Before giving an award, an arbitration tribunal may first
attempt to conciliate. If the parties apply for conciliation
voluntarily, the arbitration tribunal shall conciliate. If
conciliation is unsuccessful, an award shall be made promptly.
When a settlement agreement is reached by conciliation, the
arbitration tribunal shall prepare the conciliation statement or
the award on the basis of the results of the settlement
agreement. A conciliation statement shall have the same legal
force as that of an award.
Article 52
A conciliation statement shall set forth the arbitration
claims andthe results of the agreement between the parties. The
conciliation statement shall be signed by the arbitrators,
sealed by the arbitration commission, and served on both
parties. A conciliation statement shall have legal effect once
signed and accepted by the parties. If the parties fall back on
their words before the conciliation statement is singed and
accepted by them, an award shall be made by the arbitration
tribunal promptly.
Article 53
An award shall be based on the opinion of the majority
arbitrators. The opinion of the minority arbitrators shall be
recorded in writing. If an opinion of the minority arbitrators
shall be recorded in writing. If an opinion of the majority
arbitrators can not be constituted at the tribunal, the award
shall be given according to the opinion of the presiding
arbitrator.
Article 54
The arbitration claims, the matters in dispute, the grounds
upon which an award is given, the results of the judgment, the
responsibility for the arbitration fees and the date of the
award shall be set forth in the award. If the parties agree not
to include in the award the matters in dispute and the grounds
on which the award is based, such matters may not be stated in
the award. The award shall be signed by the arbitrators and
sealed by the arbitration commission. The arbitrator who
disagrees with the award may select to sign or not to sign it.
Article 55
During the course of arbitration by an arbitration tribunal,
where a part of facts has been made clear, a partial award may
first be given in relation to that part.
Article 56
The parties may, within 30 days of the receipt of the award,
request the arbitration tribunal to correct any typographical
errors, calculation errors or matters which had been awarded but
omitted in the award.
Article 57
An award shall be legally effective on the date it is given.
Chapter V Application for Cancellation of an Award
Article 58
The parties may apply to the intermediate people's court at
the place where the arbitration commission is located for
cancellation of an award if they provide evidence proving that
the award involves one of the following circumstances:
1. there is no arbitration agreement between the parties;
2. the matters of the award are beyond the extent of the
arbitration agreement or not within the jurisdiction of the
arbitration commission;
3. the composition of the arbitration tribunal or the
arbitration procedure is in contrary to the legal procedure;
4. the evidence on which the award is based is falsified;
5. the other party has concealed evidence which is sufficient
to affect the impartiality of the award; and
6. the arbitrator(s) has (have) demanded or accepted bribes,
committed graft or perverted the law in making the arbitral
award. The peoples' court shall rule to cancel the award if the
existence of one of the circumstances prescribed in the
preceding clause is confirmed by its collegiate bench. The
people's court shall rule to cancel the award if it holds that
the award is contrary to the social and public interests.
Article 59
If a party applies for cancellation of an award, an
application shall be submitted within 6 months after receipt of
the award.
Article 60
The people's court shall, within 2 months after receipt of the
application for cancellation of an award, render its decision
for cancellation of the award or for rejection of the
application.
Article 61
If the people's court holds that the case may be re-arbitrated
by the arbitration tribunal after receipt of the application for
cancellation of an award, the court shall inform the arbitration
tribunal of re-arbitrating the case within a certain period of
time and rule to suspend the cancellation procedure. If the
arbitration tribunal refuses to re-arbitrate, the people's court
shall rule to resume the cancellation procedure.
Chapter VI Enforcement
Article 62
The parties shall execute an arbitration award. If one party
fails to execute the award, the other party may apply to a
people's court for enforcement in accordance with the relevant
provisions of the Civil Procedure Law, and the court shall
enforce the award.
Article 63
A people's court shall, after examination and verification by
its collegiate bench, rule not to enforce an award if the party
against whom an application for enforcement is made provides
evidence proving that the award involves one of the
circumstances prescribed in Clause 2, Article 217 of the Civil
procedure Law.
Article 64
If one party applies for enforcement of an award while the
other party applies for cancellation of the award, the people's
court receiving such application shall rule to suspend
enforcement of the award. If a people's court rules to cancel an
award, it shall rule to terminate enforcement. If the people's
court overrules the application for cancellation of an award, it
shall rule to resume enforcement.
Chapter VII Special provisions on Foreign-Related Arbitration
Article 65
The provisions of this Chapter shall apply to all arbitration
of
disputes arising from foreign economic, trade, transportation
or maritime matters. In the absence of provisions in this
Chapter, other relevant provisions of this Law shall apply.
Article 66
A foreign arbitration commission may be organized and
established by the China International Chamber of Commerce. A
foreign arbitration commission shall comprise one chairman,
several vice-chairmen and several committee members. The
chairman, vice-chairmen and committee members may be appointed
by the China International Chamber of Commerce.
Article 67
A foreign arbitration commission may appoint foreigners with
professional knowledge in such fields as law, economic and
trade, science and technology as arbitrators.
Article 68
If the parties to a foreign-related arbitration apply for
evidence preservation, the foreign arbitration commission shall
submit their applications to the intermediate people's court in
the place where the evidence is located.
Article 69
The arbitration tribunal of a foreign arbitration commission
may record the details of the hearing in writing or record the
essentials of the hearing in writing. The written record of the
essentials shall be signed or sealed by the parties and other
participants in the arbitration.
Article 70
A people's court shall, after examination and verification by
its collegiate bench, rule to cancel an award if a party to the
case provides evidence proving that the arbitration award
involves one of the circumstances prescribed in Clause 1,
Article 260 of the Civil Procedure Law.
Article 71
A people's court shall, after examination and verification by
its collegiate bench, rule not to enforce an award-if the party
against whom an application is made provides evidence proving
that the arbitration award involves one of the circumstances
prescribed in Clause 1, Article 260 of the Civil Procedure Law.
Article 72
Where the party subject to enforcement or its property is not
within the territory of the People's Republic of China, a party
applying for the enforcement of a legally effective arbitration
award shall apply directly to the foreign court having
jurisdiction for recognition and enforcement of the award.
Article 73
Foreign arbitration rules may be formulated by the China
International Chamber of Commerce in accordance with this Law
and the relevant provisions of the Civil Procedure Law.
Chapter VIII Supplementary Provisions
Article 74
If the law has stipulated a time limitation of arbitration,
such provisions of the law shall apply. If the law has not
stipulated a time limitation of arbitration, the provisions on
the limitation of actions shall apply.
Article 75
The arbitration Commission may formulate provisional
arbitration rules in accordance with this Law and the relevant
provisions of the Civil Procedure Law before the formulation of
the arbitration rules by the China Arbitration Association.
Article 76
The parties shall pay arbitration fees in accordance with the
relevant provisions. The methods for the collection of
arbitration fees shall be submitted to the commodity prices
administration department for approval.
Article 77
Arbitration of labor disputes and disputes over contracts for
undertaking agricultural projects within agricultural collective
economic organizations shall be separately stipulated.
Article 78
In the event of conflict between the provisions on arbitration
formulated before the coming into effect of this Law and the
provisions of this Law, the provisions of this Law shall
prevail.
Article 79
Arbitration organs established before the coming into effect
of this Law in the municipalities directly under the Central
Government, in the municipalities where the people's governments
of the provinces or autonomous regions and in other cities
divided into districts must be re-organized in accordance with
the relevant provisions of this Law. The arbitration organs
which are not re-organized shall be terminated at the expiration
of one year after the date of effectiveness of this Law.
All other arbitration organs established before the
implementation of this Law and not conforming to the provisions
of this Law shall be terminated on the date of effectiveness of
this Law.
Article 80
This Law shall be effective as of September 1, 1995. |
