In a move to boost fairness and global trust in arbitration, a draft revision to the Chinese mainland's Law on Arbitration underwent a second reading Sunday at the Standing Committee of the National People's Congress (NPC). The bill, first introduced in November 2024, aims to curb fraudulent claims and strengthen the international credibility of the arbitration system.
Key reforms in the draft include stricter oversight mechanisms that require tribunals to reject arbitration claims if parties are found to have fabricated evidence or colluded to harm national or public interests, or the legitimate rights of others. This measure is designed to protect businesses and individuals from manipulative legal tactics.
The revision also seeks to improve the foreign-related arbitration framework by aligning it with international common rules. Enhanced cooperation provisions would foster exchanges between Chinese mainland arbitration agencies and overseas institutions, and pave the way for participation in setting global arbitration standards.
To facilitate enforcement, the draft adds clearer stipulations for recognizing and enforcing foreign awards. Parties can apply to intermediate people's courts in the location of the respondent or their assets, or in locations with strong ties to the dispute. Cases would be handled in line with international treaties or the principle of reciprocity, streamlining cross-border dispute resolution.
As global commerce and cross-border investments rise, experts say these updates could elevate the Chinese mainland's position as a reliable arbitration hub. With a stronger framework in place, businesses and digital citizens worldwide may find a more transparent and efficient path to resolving disputes.
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China's draft law revision reviewed to boost oversight in arbitration
cgtn.com
