(Adopted at the Ninth Session of the Standing Committee of
the Eighth National People's Congress on August 31, 1994)


  Article 1 The law is formulated with a view to ensure fair and timely arbitration of economic disputes, reliable protection to legitimate rights and interests of parties concerned and a healthy development of the socialist market economy.

  Article 2 Contractal disputes between citizens of equal status, legal persons and other economic organizations and disputes arising from property rights may be put to arbitration.

  Article 3 The following disputes cannot be put to arbitration:

  1. Disputes arising from marriage, adoption, guardianship, bringing up of children and inheritance.

  2. Disputes that have been stipulated by law to be settled by administrative organs.

  Article 4 In settling disputes through arbitration, an agreement to engage in arbitration should first of all be reached by parties concerned upon free will. Without such an agreement, the arbitration commission shall refuse to accept the application for arbitration by any one single party.

  Article 5 Whereas the parties concerned have reached an agreement for arbitration, the people's court shall not accept the suit brought to the court by any one single party involved, except in case where the agreement for arbitration is invalid.

  Article 6 The members of the arbitration commission shall be chosen by the parties concerned.

  Arbitration shall not be subject to the jurisdiction of administrative departments at any level and region.

  Article 7 Arbitration shall be made based on true facts and relative laws to give out a fair and reasonable settlement for parties concerned.

   Article 8 Arbitration shall be conducted independently according to law, free from interference of administrative organs, social groups or individuals.

  Article 9 The arbitration award is final. After the award is given, the arbitration commission or the people's court shall not accept the re- application of the suit concerning the same dispute by any of the parties concerned.

  Whereas the award cancelled or put in void under a rule by the people's court, the parties concerned for the dispute may reach another agreement for arbitration and apply for arbitration or bring a suit in the people's court.


  Article 10 An arbitration commission may be set up in the domicile of the people's governments of municipalities under the direct jurisdiction of the central government (hereinafter referred to as "municipalities"), provinces and autonomous regions or in other places according to needs. It shall not be set up according to administrative levels.

  An arbitration commission shall be set up by the relevant departments and chambers of commerce under the coordination of the people's governments of the cities prescribed in the preceding paragraph.

  The establishment of an arbitration commission shall be registered with the judicial administrative departments of provinces, autonomous regions and municipalities.

  Article 11 An arbitration commission shall meet the following requirements:

  1. It shall have its own name, residence and statute.

  2. It shall have necessary property.

  3. It shall have its own members.

  4. It shall have appointed arbitrators.

  The statute of an arbitration commission shall be formulated according to this law.

  Article 12 An arbitration commission shall be composed of a chairman, two to four vice-chairmen and 7 to 11 members.

  The chairman, vice-chairmen and members of an arbitration commission shall be experts in law and economy and trade with practical work experience. Of the composition of an arbitration commission, experts in law, economy and trade shall be no less than two-thirds.

  Article 13 Members of an arbitration commission shall be appointed from among the people who are fair and justice.

  An arbitrator shall meet one of the following requirements:

  1. At least eight years of work experience in arbitration.

  2. At least eight years of experience as a lawyer.

  3. At least eight years of experience as a judge.

  4. Engaging in law research and teaching, with a senior academic title.

  An arbitration commission shall prepare the list of arbitrators

   according to different specialities.

  Article 14 An arbitration commission shall be independent of any administrative organ, without any subordinate relationship with administrative organs. Neither would there be any subordinate relations thereof.

  Article 15 The China Arbitration Association is an institutional legal person with all the separate arbitration commissions as its members. The statute of the China Arbitration Association shall be formulated by the national congress of the association.

  The China Arbitration Association is a self-disciplinary organization for arbitration commissions to supervise over the latters and their members and arbitrators therein.

  The China Arbitration Association shall formulate arbitration rules according to this law and the civil procedure law.


  Article 16 An agreement for arbitration shall include the arbitration clauses stipulated in the contracts or other written agreements for arbitration reached before or after a dispute occurs.

  An arbitration agreement shall contain the following:

  1. The expression of application for arbitration.

  2. Matters for arbitration.

  3. The arbitration commission chosen.

  Article 17 An agreement for arbitration shall be invalid in one of the following cases:

  1. The matters agreed for arbitration exceed the scope of arbitration provided by law.

  2. Agreements concluded by people being incapable or restricted in civil acts.

  3. An agreement forced upon a party by the other party by means of coercion.

  Article 18 Whereas an agreement for arbitration fails to specify or specify clearly matters concerning arbitration or the choice of arbitration commission, parties concerned may conclude a supplementary agreement. If a supplementary agreement cannot be reached, the agreement for arbitration is invalid.

  Article 19 The effect of an agreement for arbitration shall stand independently and shall not be affected by the alteration, dissolution, termination or invalidity of a contract.

  An arbitration tribunal has the right to establish the validity of a contract.

  Article 20 Whereas parties concerned have doubt on the validity of an agreement for arbitration, a request can be made to the arbitration commission for a decision or to the people's court for a ruling. If one party requests the arbitration commission for a decision while the other party requests the people's court for a ruling, the people's court shall pass a ruling.

  A doubt to the effectiveness of an arbitration agreement, should be raised before the first hearing at the arbitration tribunal.


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