How can we help you?

How to tell if an arbitration clause is valid under the Chinese law?

In order to enforce arbitration awards in China, the arbitration clause stipulated in the contract must be considered valid under China’s Arbitration Law. In particular, the items that are necessary for ensuring the validity of an arbitration agreement or clause are:

  • Both parties’ expression of interest to proceed with arbitration, which should be referred to explicitly;
  • Clear definition of the items for arbitration, which must be arbitrable (e.g. administrative agreements and antitrust civil disputes, etc.);
  • Indication of the juridical seat of arbitration and applicable laws;
  • Written and executed by legal persons with full civil capacity.

A standard arbitration clause recommended is “Any dispute arising from, or in connection with, this Contract shall be submitted to [arbitration institution name] for arbitration, and shall be subject to the laws of [country where the arbitration institution is located] in effect at the time of applying for arbitration. The arbitral award is final and binding upon both parties”.