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Arbitration law of the People's Republic of China

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Arbitration law of the People's Republic of China

(adopted at the ninth session of the standing committee of the eighth National People's Congress on August 31, 1994, promulgated by order no. 31 of the President of the People's Republic of China on August 31, 1994 and effective as of September 1, 1995)

Chapter I general provisions

Article 1 this law is enacted with a view to ensuring fair and timely arbitration of economic disputes, protecting the legitimate rights and interests of the parties concerned and ensuring 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 may be arbitrated.

Article 3 the following disputes shall not be arbitrated:

Disputes over marriage, adoption, guardianship, maintenance and inheritance;

(2) administrative disputes that should be handled by administrative organs according to law.

Article 4 in settling disputes by arbitration, the parties shall reach an arbitration agreement of their own free will.If either party applies for arbitration without an arbitration agreement, the arbitration commission shall not accept the application.

Article 5 if the parties have reached an arbitration agreement and either party brings a suit before a people's court, the people's court shall not accept the case, unless the arbitration agreement is invalid.

Article 6 an arbitration commission shall be selected by the parties through agreement.

Arbitration shall not be subject to hierarchical or regional jurisdiction.

Article 7 arbitration shall settle disputes fairly and reasonably on the basis of facts and in accordance with the provisions of law.

Article 8 arbitration shall be conducted independently according to law and shall not be subject to interference by administrative organs, public organizations or individuals.

Article 9 the system of one arbitration award shall be final.After the award has been made, the arbitration commission or the people's court shall not accept the case if the parties apply for arbitration or bring a suit in a people's court for the same dispute.

If the arbitration award has been cancelled or rejected by a people's court according to law, the parties may apply for arbitration on the dispute in accordance with the new arbitration agreement reached between the two parties, or bring a suit in a people's court.

Chapter ii arbitration commissions and arbitration associations

Article 10 arbitration commissions may be established in municipalities directly under the central government, in the cities where the people's governments of provinces and autonomous regions are located, or in other cities divided into districts where necessary.

The arbitration commissions shall be organized by the relevant departments and Chambers of commerce organized by the people's governments of the cities mentioned in the preceding paragraph.

The establishment of an arbitration commission shall be registered with the judicial administrative department of the province, autonomous region or municipality directly under the central government.

Article 11 an arbitration commission shall meet the following requirements:

(1) having its own name, domicile and articles of association;

(2) having necessary property;

(3) having members of the committee;

(4) having arbitrators for appointment.

The articles of association of the arbitration commission shall be formulated in accordance with this law.

Article 12 an arbitration commission shall be composed of a chairman, two to four vice-chairmen and seven to eleven members.

The chairman, vice-chairmen and members of the arbitration commission shall be legal, economic and trade experts and persons with practical working experience.No less than two-thirds of the members of the arbitration commission shall be legal, economic and trade experts.

Article 13 the arbitration commission shall appoint arbitrators from fair and upright personnel.

An arbitrator shall meet one of the following conditions:

(1) having been engaged in arbitration for at least eight years;

(2) having worked as a lawyer for at least eight years;

(3) having been a judge for at least eight years;

(4) engaging in legal research, teaching and holding senior professional titles;

(5) having legal knowledge, engaging in professional work in economy and trade and holding senior professional titles or equivalent professional levels.

The arbitration commission shall establish a roster of arbitrators according to different specialties.

Article 14 arbitration commissions are independent of administrative organs and have no subordinate relationship with administrative organs.The arbitration commissions are not subordinate to each other.

Article 15 the China arbitration association is a social organization legal person.The arbitration commission is a member of China arbitration association.The articles of association of the China arbitration association shall be formulated by the national general assembly.

The China arbitration association is a self-disciplinary organization of the arbitration commission, which shall supervise the disciplinary violations of the arbitration commission, its members and arbitrators in accordance with the articles of association.

The China arbitration association shall formulate arbitration rules in accordance with this law and the relevant provisions of 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 reached before or after the dispute to apply for arbitration.

An arbitration agreement shall contain the following contents:

(1) the expression of the intention to apply for arbitration;

(2) matters for arbitration;

(3) the arbitration commission selected.

Article 17 an arbitration agreement shall be invalid under any of the following circumstances:

(1) the matters agreed upon for arbitration are beyond the scope of arbitration prescribed by law;

An arbitration agreement concluded by persons without or with limited capacity for civil conduct;

(3) one party forces the other party to conclude an arbitration agreement by means of coercion.

Article 18 if the arbitration matters or the arbitration commission are not agreed upon in the arbitration agreement or the agreement is not clear, the parties may supplement the agreement.If no supplementary agreement can be reached, the arbitration agreement shall be invalid.

Article 19 an arbitration agreement shall exist independently. Any alteration, rescission, termination or invalidity of the contract shall not affect the validity of the arbitration agreement.

An arbitration tribunal shall have the right to affirm the validity of a contract.

Article 20 if the parties object to the validity of the arbitration agreement, they may request the arbitration commission to make a decision or the people's court to make a ruling.If either party requests the arbitration commission to make a decision and the other party requests the people's court to make a ruling, the people's court shall make the ruling.

If the parties have any objection to the validity of the arbitration agreement, they shall raise it before the first hearing of the arbitration tribunal.

Chapter iv arbitration procedure

Section 1 application and acceptance

Article 21 the parties applying for arbitration shall meet the following requirements:

(1) there is an arbitration agreement;

(2) there is a specific claim for arbitration and the facts and reasons therefor;

(3) within the scope of acceptance of the arbitration commission.

Article 22 the parties applying for arbitration shall submit to the arbitration commission an arbitration agreement, an application for arbitration and copies thereof.

Article 23 an arbitration application shall specify the following:

(1) the name, sex, age, occupation, work unit and domicile of the party concerned, the name and domicile of the legal person or other organization and the name and post of its legal representative or principal person in charge;

(2) the arbitration claim and the facts and grounds on which it is based;

(3) the evidence and the source of the evidence, and the name and domicile of the witness.

Article 24 within five days from the date of receiving the application for arbitration, the arbitration commission shall accept the application and notify the parties concerned if it considers that the conditions for acceptance are met.If it considers that the conditions for acceptance are not met, it shall notify the party concerned in writing not to accept the case and explain the reasons.

Article 25 after accepting an arbitration application, the arbitration commission shall, within the time limit prescribed by the arbitration rules, serve the arbitration rules and the list of arbitrators on the applicant and the copy of the arbitration application, the arbitration rules and the list of arbitrators on the respondent.

After receiving a copy of the arbitration application, the respondent shall submit a written defense to the arbitration commission within the time limit prescribed by the arbitration rules.After receiving the written defense, the arbitration commission shall serve a copy of the written defense on the applicant within the time limit prescribed by the arbitration rules.The failure of the respondent to submit a written defense shall not affect the proceeding of the arbitration proceedings.

Article 26 if the parties have reached an arbitration agreement and one party brings an action in a people's court without declaring that there is an arbitration agreement, and the other party submits the arbitration agreement before the first hearing after the people's court accepts the case, the people's court shall reject the action, except where the arbitration agreement is invalid.If the other party fails to raise an objection to the people's court's acceptance of the case before the first hearing, it shall be deemed to have waived the arbitration agreement and the people's court shall continue the hearing.

Article 27 the applicant may waive or modify his arbitration claim.The respondent may admit or refute the arbitration claim and has the right to make a counterclaim.

Article 28 a party may apply for property preservation if the execution of an award may be impossible or difficult due to the conduct of the other party or for other reasons.

If the parties apply for property preservation, the arbitration commission shall submit the application to the people's court in accordance with the relevant provisions of the civil procedure law.

If the application is wrong, the applicant shall compensate the party against whom the application is made for losses incurred from property preservation.

Article 29 the parties and their legal representatives may entrust lawyers or other agents to conduct arbitration activities.Where a lawyer or other agent is entrusted to conduct arbitration, a power of attorney shall be submitted to the arbitration commission.

Section ii composition of the arbitration tribunal

Article 30 an arbitration tribunal may be composed of three arbitrators or one arbitrator.If there are three arbitrators, the presiding arbitrator shall be appointed.

Article 31 if the parties agree that the arbitration tribunal shall be composed of three arbitrators, one arbitrator shall be selected by each party or the chairman of the arbitration commission shall be appointed by each party.The third arbitrator shall be the presiding arbitrator.

If the parties agree on the establishment of an arbitration tribunal by one arbitrator, the parties shall jointly choose or entrust the chairman of the arbitration commission to appoint the arbitrator.

Article 32 if the parties fail to agree on the form of composition of the arbitration tribunal or select an arbitrator within the time limit prescribed by the arbitration rules, the chairman of the arbitration commission shall appoint the arbitrator.

Article 33 after the formation of the arbitration tribunal, the arbitration commission shall notify the parties in writing of the composition of the arbitration tribunal.

Article 34 an arbitrator must withdraw under any of the following circumstances, and the parties concerned shall have the right to apply for withdrawal:

(1) being a party to the case or a near relative of a party or agent;

(2) having an interest in the case;

(3) having other relations with a party to the case or an agent that may affect the impartiality of arbitration;

(4) meeting with a party or agent without authorization, or accepting an invitation to dinner or a gift from a party or agent.

Article 35 if a party applies for withdrawal, it shall state its reasons and submit the application before the first hearing.If the reason for withdrawal is known after the first hearing, it may be raised before the end of the last hearing.

Article 36 the withdrawal of an arbitrator shall be decided by the chairman of the arbitration commission.When the chairman of the arbitration commission ACTS as an arbitrator, the arbitration commission shall decide collectively.

Article 37 if an arbitrator is unable to perform his duties due to his withdrawal or other reasons, a new arbitrator shall be selected or appointed in accordance with the provisions of this law.

After a new arbitrator has been selected or appointed because of the withdrawal of the arbitrator, the parties may request the arbitration procedure to be resumed.The arbitration tribunal may also decide, at its own discretion, whether or not to proceed with a new arbitration procedure.

Article 38 an arbitrator who falls under the circumstances prescribed in item 4, article 34 of this law, if the circumstances are serious, or who falls under the circumstances prescribed in item 6, article 58 of this law, shall bear legal liability in accordance with law, and the arbitration commission shall remove his name from the list of arbitrators.

Section 3 hearing and ruling

Article 39 an arbitration hearing shall be held.If the parties agree not to hold a hearing, the arbitration tribunal may make an award on the basis of the arbitration application, the written defense and other materials.

Article 40 arbitration shall not be conducted in public.If the parties agree to make the matter public, they may do so in public, except where state secrets are involved.

Article 41 the arbitration commission shall notify the two parties of the date of hearing within the time limit prescribed by the arbitration rules.If the parties have legitimate reasons, they may request the postponement of the hearing within the time limit prescribed by the arbitration rules.The arbitration tribunal shall decide whether to extend the time limit.

Article 42 if the applicant fails to appear in court without justified reasons or withdraws from the hearing before the arbitration tribunal without the permission of the arbitration tribunal, he may be deemed to have withdrawn his application for arbitration.

If the respondent fails to appear in court without justified reasons or withdraws during the hearing without the permission of the arbitration tribunal upon written notice, the award may be made by default.

Article 43 the parties concerned shall provide evidence in support of their claims.

An arbitration tribunal may collect evidence on its own if it deems it necessary to do so.

Article 44 if an arbitration tribunal deems it necessary to make an appraisal of a specialized issue, it may submit the appraisal to the appraisal department agreed upon by the parties or appointed by the arbitration tribunal.

At the request of the parties or at the request of the arbitration tribunal, the appraisal department shall send appraisers to attend the hearing.With the permission of the arbitration tribunal, the parties may question the appraisers.

Article 45 evidence shall be presented at the hearing and the parties may cross-examine it.

Article 46 under circumstances where the evidence may be destroyed or lost or difficult to obtain later, the parties may apply for preservation of the evidence.If the parties apply for preservation of evidence, the arbitration commission shall submit the application to the basic people's court in the place where the evidence is located.

Article 47 the parties have the right to debate in the course of arbitration.At the end of the debate, the presiding arbitrator or the sole arbitrator shall seek the final opinion of the parties.

Article 48 the arbitration tribunal shall record the hearing in writing.The parties and other participants in the arbitration shall have the right to apply for corrections if they think there are omissions or errors in the record of their statements.If no corrections are made, the application shall be recorded.

The record shall be signed or sealed by the arbitrators, the recorder, the parties and other participants in the arbitration.

Article 49 after the parties have applied for arbitration, they may settle the dispute of their own accord.If a conciliation agreement is reached, the arbitration tribunal may be requested to make an award according to the conciliation agreement, or the application for arbitration may be withdrawn.

Article 50 if the parties go back on their word after they have reached a settlement agreement and withdrawn their application for arbitration, they may apply for arbitration in accordance with the arbitration agreement.

Article 51 an arbitration tribunal may first mediate before making an award.If the parties wish to mediate, the arbitration tribunal shall mediate.If mediation fails, a ruling shall be made without delay.

If an agreement is reached through conciliation, the arbitration tribunal shall prepare a conciliation statement or an award based on the result of the agreement.The conciliation statement and the award shall have the same legal effect.

Article 52 the conciliation statement shall specify the arbitration claim and the result 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.

The conciliation statement shall become legally effective after it is signed and received by both parties.

If the parties back out before the conciliation statement is signed and received, the arbitration tribunal shall make an award without delay.

Article 53 an award shall be rendered in accordance with the opinion of the majority of arbitrators, and the dissenting opinions of the minority of arbitrators may be recorded in writing.If the arbitration tribunal cannot form a majority opinion, the award shall be made in accordance with the opinion of the presiding arbitrator.

Article 54 the award shall specify the arbitration claim, the facts in dispute, the reasons for the award, the result of the award, the burden of the arbitration fee and the date of the award.If the parties agree not to state clearly the facts in dispute and the reasons for the ruling, they may omit to do so.The award shall be signed by the arbitrators and affixed with the seal of the arbitration commission.An arbitrator who disagrees with the award may sign or not sign.

Article 55 when arbitrating a dispute, an arbitration tribunal may give an award in respect of a part of the facts which are already clear.

Article 56 the arbitration tribunal shall correct the errors in words or calculations in the award or the matters which have been awarded but which have been omitted in the award.Within 30 days from the date of receipt of the award, the parties may request the arbitration tribunal to make corrections.

Article 57 the award shall become legally effective as of the date it is made.

Chapter v application for cancellation of an award

Article 58 the parties may apply to the intermediate people's court in the place where the arbitration commission is located for cancellation of an award if they provide evidence proving that the award falls under any of the following circumstances:

(1) there is no arbitration agreement;

(2) the matter of the award does not fall within the scope of the arbitration agreement or the arbitration commission has no power to arbitrate;

(3) the composition of the arbitration tribunal or the arbitration procedure violates the legal procedure;

(4) the evidence on which the award is based is falsified;

(5) the other party has concealed evidence sufficient to affect the impartiality of the award;

(6) the arbitrators have demanded or accepted bribes, done malpractices for personal gain or perverted the law in the arbitration of the case.

The people's court shall order the cancellation of the award if the award is under any of the circumstances prescribed in the preceding paragraph after examination and verification by a collegial panel.

If the people's court finds that the award violates the social and public interests, it shall order to revoke it.

Article 59 an application for cancellation of an award shall be filed by a party within six months from the date of receipt of the award.

Article 60 the people's court shall, within two months from the date of accepting the application for cancellation of an award, make an order for cancellation of the award or rejection of the application.

Article 61 if, after receiving an application for cancellation of an award, the people's court considers that the arbitration tribunal may re-arbitrate, it shall notify the arbitration tribunal to re-arbitrate within a certain period of time and order to suspend the cancellation procedure.If the arbitration tribunal refuses to re-arbitrate, the people's court shall order the resumption of the cancellation procedure.

Chapter vi enforcement

Article 62 the parties shall implement the award.If one party fails to perform, the other party may apply to the people's court for execution in accordance with the relevant provisions of the civil procedure law.The people's court shall execute the application.

Article 63 if the respondent provides evidence to prove that an award involves one of the circumstances prescribed in paragraph 2, article 217 of the civil procedure law, the people's court shall, after examination and verification by a collegial panel formed by the people's court, make a written order not to enforce the award.

Article 64 if one party applies for enforcement of an award and the other party applies for cancellation of the award, the people's court shall order the suspension of enforcement.

If the people's court orders to revoke the award, it shall order the termination of execution.If the application for cancellation of an award is rejected by a written order, the people's court shall order the resumption of execution.

Chapter vii special provisions on foreign arbitration

Article 65 the provisions of this chapter shall apply to arbitration of disputes arising from foreign economic, trade, transport and maritime matters.Where there are no provisions in this chapter, other relevant provisions of this law shall apply.

Article 66 a foreign arbitration commission may be established by the China international chamber of commerce.

The foreign arbitration commission shall be composed of a chairman, vice-chairmen and members.

The chairman, vice-chairmen and members of a foreign arbitration commission may be appointed by the China international chamber of commerce.

Article 67 a foreign arbitration commission may appoint arbitrators from among foreign nationals with special knowledge in law, economy, trade, science and technology, etc.

Article 68 if a party to a foreign-related arbitration applies for evidence preservation, the foreign-related arbitration commission shall submit the party's application to the intermediate people's court in the place where the evidence is located.

Article 69 the arbitration tribunal of a foreign-related arbitration may record the hearing in writing or record the main points of the hearing, which may be signed or sealed by the parties and other participants in the arbitration.

Article 70 if the parties provide evidence to prove that the foreign-related arbitration award involves any of the circumstances prescribed in the first paragraph of article 260 of the civil procedure law, the people's court shall, after examination and verification by a collegial panel formed by the people's court, rule to cancel the award.

Article 71 if the party against whom an application is filed provides evidence proving that the foreign-related arbitration award involves any of the circumstances prescribed in paragraph 1, article 260 of the civil procedure law, the people's court shall, after examination and verification by a collegial panel of the people's court, rule not to enforce the award.

Article 72 where a party requests enforcement of a legally effective arbitration award made by a foreign arbitration commission, if the person subjected to enforcement or his property is not within the territory of the People's Republic of China, the party shall directly apply to the foreign court having jurisdiction for recognition and enforcement.

Article 73 rules for foreign arbitration 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 provisions on the limitation of time for arbitration, such provisions shall apply.If the law does not prescribe a limitation of action for arbitration, the provisions on limitation of action shall apply.

Article 75 before the formulation of arbitration rules by the China arbitration association, the arbitration commission may formulate provisional arbitration rules in accordance with this law and the relevant provisions of the civil procedure law.

Article 76 the parties shall pay arbitration fees in accordance with the relevant provisions.

The method for collecting arbitration fees shall be submitted to the price control department for approval.

Article 77 arbitration of labor disputes and disputes over agricultural contracts within agricultural collective economic organizations shall be formulated separately.

Article 78 in the event of conflict between the provisions on arbitration formulated before the implementation of this law and the provisions of this law, this law shall prevail.

Article 79 arbitration organs established before the implementation of this law in the municipalities directly under the central government, in the cities where the people's governments of provinces and autonomous regions are located and in other cities divided into districts shall be re-organized in accordance with the relevant provisions of this law.If it is not reorganized, it shall terminate at the expiration of one year as of the date of entry into force of this law.

Other arbitration organs established before the implementation of this law and not in conformity with the provisions of this law shall be terminated as of the date of the implementation of this law.

Article 80 this law shall enter into force as of September 1, 1995.

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