Short answer: If your contract contains a valid written arbitration clause, a Chinese court will not decide the dispute. It goes to the arbitration commission named in the clause, and the award is final and binding. China has just rewritten the rules: a comprehensively revised Arbitration Law was adopted on 12 September 2025 and took effect on 1 March 2026, with 8 chapters and 96 articles. The revision formally introduces the seat of arbitration and, for the first time, allows ad hoc arbitration in limited cross-border cases.

The core framework

Chinese arbitration rests on three pillars. First, an agreement: a clause in the contract or a separate written agreement is what gives an arbitral tribunal its power. Second, one-instance finality: Article 10 of the revised law provides that arbitration applies a single-instance, final system, so once the award is made, neither an arbitration commission nor a court will accept a fresh arbitration or a lawsuit over the same dispute. Third, enforcement: an award is enforceable, and a foreign award can be recognised and enforced in China because China has been a party to the New York Convention since 22 April 1987, subject to reciprocity and commercial reservations.

What the 2025 revision changed

Two changes matter most to foreign parties. The seat of arbitration. Article 81 allows the parties to agree in writing on the seat, the first time Chinese legislation has recognised the concept. The seat matters because it determines which courts supervise and support the arbitration, and it gives foreign parties a familiar tool for predicting the procedural law and the reviewing court. Ad hoc arbitration. Article 82 permits arbitration without an institution in specific cross-border situations: foreign-related maritime disputes, and disputes between enterprises registered in the Hainan Free Trade Port. That is a deliberate departure from the old rule that arbitration in China had to be administered by a commission.

Practical points for foreign businesses

Name the commission precisely, and check its model clause before you sign. Decide the seat and the language of the arbitration, because both are negotiable and both affect cost and outcome. Where the counterparty holds assets in China, the real question is enforcement: an award is worth what you can collect. In urgent cases you can ask the commission to pass your application for property or evidence preservation to the competent court.

A scenario

A German equipment supplier signs a sales contract with a Chinese buyer containing a clause referring disputes to arbitration in Beijing. The buyer refuses to pay and sues in a local court instead. The court should decline jurisdiction and leave the parties to arbitration; after the award, if the buyer still does not pay, the supplier applies to the intermediate people’s court where the buyer is domiciled or holds assets. (Hypothetical illustration, not a reported case.)

Frequently asked questions

Q: Are arbitral awards in China final?
A: Yes. Under Article 10 of the revised Arbitration Law, arbitration applies one-instance finality: once the award is made, neither an arbitration commission nor a court will accept a new arbitration or lawsuit over the same dispute.

Q: When did the new Arbitration Law take effect?
A: It was adopted on 12 September 2025 and has been in force since 1 March 2026. It has 8 chapters and 96 articles.

Q: Can I enforce a foreign arbitral award in China?
A: Yes, under the New York Convention, to which China has been a party since 22 April 1987, subject to reciprocity and commercial reservations.

Q: Do I have to use a Chinese arbitration commission?
A: Generally yes for arbitrations seated in China. Article 82 of the revised law now allows ad hoc arbitration in limited cross-border cases, such as foreign-related maritime disputes.

Q: Why does the seat of arbitration matter?
A: Article 81 lets the parties agree the seat in writing. The seat decides which courts supervise the arbitration and support it, so it shapes the procedure and the enforceability of the award.

Wang Guan | Co-founder, Beijing Haolue Law Firm | +86 17813108512