Beijing, China — China is taking significant steps to tighten oversight in arbitration practices with a new draft revision to its Law on Arbitration. The proposed changes aim to curb fraudulent activities and enhance international cooperation, marking a pivotal move towards aligning with global standards.
The draft law was submitted for a second reading on Sunday at the ongoing session of the Standing Committee of the National People’s Congress (NPC), following its first reading in November last year. The revisions are designed to introduce stricter measures against dishonest arbitration practices. Under the new proposals, arbitration tribunals would be required to reject claims if parties are found to have fabricated evidence or engaged in malicious collusion to harm national interests, public interests, or the legitimate rights of others.
One of the key focuses of the draft is to improve the foreign-related arbitration system. By actively aligning with international common rules, China aims to enhance the credibility and international competitiveness of its arbitration processes. The proposed revisions include provisions to strengthen exchanges and cooperation between Chinese arbitration agencies and their overseas counterparts, as well as relevant international organizations. This move is expected to facilitate China’s participation in the formulation of international arbitration rules.
Additionally, the draft introduces stipulations for recognizing and enforcing foreign arbitration awards within China. Parties seeking recognition and enforcement of such awards can apply to intermediate people’s courts in areas where the parties subject to enforcement reside, where their property is located, or places that have a significant connection to the adjudicated dispute. These cases will be handled in accordance with relevant international treaties or on the principle of reciprocity.
This initiative demonstrates China’s commitment to uphold justice and maintain fair arbitration practices, both domestically and in the international arena. By cracking down on fraudulent arbitration and fostering global cooperation, the Chinese mainland is positioning itself as a reliable and transparent participant in international dispute resolution.
