Arbitration Law of the Peoples Republic of China

¡¡Chapter I General Provisions

Article 1
¡¡¡¡This Law is formulated in order to ensure that economic disputes shall
be impartially and promptly arbitrated, to protect the¡¡legitimate¡¡rights
and interests of¡¡the¡¡relevant¡¡parties¡¡and¡¡to¡¡guarantee¡¡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 of law may be submitted to arbitration.
Article 3
¡¡¡¡The following disputes shall not be submitted to arbitration:
¡¡¡¡1. disputes over marriage, adoption, guardianship,
¡¡¡¡child maintenance and inheritance; and
¡¡¡¡2. administrative disputes falling within the jurisdiction
¡¡¡¡of the relevant administrative organs according to
¡¡¡¡law.
Article 4
¡¡¡¡The parties adopting arbitration for dispute settlement shall reach an
arbitration agreement¡¡on¡¡a¡¡mutually¡¡voluntary¡¡basis.¡¡An¡¡arbitration
commission shall not accept an application for¡¡arbitration¡¡submitted¡¡by
one of the parties in the absence of an arbitration agreement.
Article 5
¡¡¡¡A people's court shall not accept an action initiated by¡¡one¡¡of¡¡the
parties if the parties have concluded an arbitration agreement, unless the
arbitration agreement is invalid.
Article 6
¡¡¡¡An¡¡arbitration¡¡commission¡¡shall¡¡be¡¡selected¡¡by¡¡the¡¡parties¡¡by
agreement.
¡¡¡¡The jurisdiction by level system and the district jurisdiction¡¡system
shall not apply in arbitration.
Article 7
¡¡¡¡Disputes shall be fairly and reasonably settled by arbitration on¡¡the
basis of facts and in accordance with¡¡the¡¡relevant¡¡provisions¡¡of¡¡law.
Article 8
¡¡¡¡Arbitration shall be conducted in accordance with the law, independent
of any intervention by¡¡administrative¡¡organs,¡¡social¡¡organizations¡¡or
individuals.
Article 9
¡¡¡¡The¡¡single¡¡ruling¡¡system¡¡shall¡¡be¡¡applied¡¡in¡¡arbitration.¡¡The
arbitration commission shall not accept any application¡¡for¡¡arbitration,
nor shall a people's court accept any action submitted¡¡by¡¡the¡¡party¡¡in
respect of the same dispute after an arbitration award¡¡has¡¡already¡¡been
given in relation to that matter.
¡¡¡¡If the arbitration award is¡¡canceled¡¡or¡¡its¡¡enforcement¡¡has¡¡been
disallowed by a people's court in accordance with¡¡the¡¡law,¡¡the¡¡parties
may, in accordance with¡¡a¡¡new¡¡arbitration¡¡agreement¡¡between¡¡them¡¡in
respect of the¡¡dispute,¡¡ re-apply¡¡for¡¡arbitration¡¡or¡¡initiate¡¡legal
proceedings with the people's court.

¡¡Chapter II Arbitration Commissions and Arbitration Association

Article 10
¡¡¡¡Arbitration commissions¡¡may¡¡be¡¡established¡¡in¡¡the¡¡municipalities
directly under the Central Government,¡¡in the¡¡municipalities¡¡where¡¡the
people's governments of provinces and autonomous regions are¡¡located¡¡or,
if¡¡necessary,¡¡in¡¡other¡¡cities¡¡divided¡¡into¡¡districts.¡¡ Arbitration
commissions shall not be established at each level of¡¡the¡¡administrative
divisions.
¡¡¡¡The people's governments of the municipalities and cities specified in
the above paragraph¡¡shall¡¡organize¡¡the¡¡relevant¡¡departments¡¡and¡¡the
Chamber of Commerce for the formation of an arbitration commission.
¡¡¡¡The establishment of an arbitration¡¡commission¡¡shall¡¡be¡¡registered
with the judicial administrative¡¡department¡¡of¡¡the¡¡relevant¡¡province,
autonomous region or municipalities directly under the Central Government.
Article 11
¡¡¡¡An arbitration commission shall fulfil the following conditions:
¡¡¡¡1. it must have its own name, domicile and Articles of Association;
¡¡¡¡2. it must possess the necessary property;
¡¡¡¡3. it must have its own members; and
¡¡¡¡4. it must have arbitrators for appointment.
¡¡¡¡The articles of association of the an arbitration commission shall¡¡be
formulated in accordance with this Law.
Article 12
¡¡¡¡An arbitration commission shall¡¡comprise¡¡a¡¡chairman,¡¡two¡¡to¡¡four
vice-chairmen and seven to eleven members.
¡¡¡¡The chairman, vice-chairmen and members of an¡¡arbitration¡¡commission
must be persons specialized in law,¡¡economic and trade¡¡and¡¡persons¡¡who
have actual working experience. The number of specialists in law, economic
and trade shall¡¡not¡¡be¡¡less¡¡than¡¡two-thirds¡¡of¡¡the¡¡members¡¡of¡¡an
arbitration association.
Article 13
¡¡¡¡The arbitration commission shall appoint fair and honest person as its
arbitrators.
¡¡¡¡Arbitrators must fulfil one of the following conditions:
¡¡¡¡1. they have been engaged in¡¡arbitration¡¡work¡¡for¡¡at¡¡least¡¡eight
years;
¡¡¡¡2. they have worked as a lawyer for at least eight years;
¡¡¡¡3. they have been a judge for at least eight years;
¡¡¡¡4. they are engaged in legal research or legal teaching and in¡¡senior
positions; and
¡¡¡¡5. they have legal knowledge and¡¡are¡¡engaged¡¡in¡¡professional¡¡work
relating to economics and¡¡trade,¡¡and¡¡in¡¡senior¡¡positions¡¡or¡¡of¡¡the
equivalent professional level.
¡¡¡¡The arbitration commission¡¡shall¡¡establish¡¡a¡¡list¡¡of¡¡arbitrators
according to different professionals.

Article 14
¡¡¡¡Arbitration commissions are independent of administrative¡¡organs¡¡and
there are no subordinate relations¡¡with¡¡any¡¡administrative¡¡organs¡¡nor
between the different arbitration commissions.
Article 15
¡¡¡¡The China Arbitration Association is a social¡¡organization¡¡with¡¡the
status of a legal person. Arbitration commissions are members of the China
Arbitration¡¡Association.¡¡The¡¡Articles¡¡of¡¡Association¡¡of¡¡the¡¡ China
Arbitration Association¡¡shall¡¡be¡¡formulated¡¡by¡¡the¡¡national¡¡general
meeting of the members.
¡¡¡¡The China Arbitration Association is¡¡an¡¡organization¡¡in¡¡charge¡¡of
self-regulation¡¡of¡¡the¡¡arbitration¡¡commissions.¡¡ It¡¡ shall¡¡ conduct
supervision over the conduct (any breach of discipline) of the arbitration
commissions and their members¡¡and¡¡arbitrators¡¡in¡¡accordance¡¡with¡¡its
articles of association.
¡¡¡¡The China Arbitration Association shall formulate Arbitration Rules in
accordance with this Law and 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 concluded
before or after the disputes providing for submission to arbitration.
¡¡¡¡The following contents shall be included in an arbitration agreement:
¡¡¡¡1. the expression of the parties' wish to submit to arbitration;
¡¡¡¡2. the matters to be arbitrated; and
¡¡¡¡3. the Arbitration Commission selected by the parties.
Article 17
¡¡¡¡An arbitration agreement shall be invalid under any of¡¡the¡¡following
circumstances:
¡¡¡¡1. matters agreed¡¡upon¡¡for¡¡arbitration¡¡are¡¡beyond¡¡the¡¡scope¡¡of
arbitration prescribed by law;
¡¡¡¡2. an arbitration agreement¡¡concluded¡¡by¡¡persons¡¡without¡¡or¡¡with
limited capacity for civil acts; and
¡¡¡¡3. one party forces the other party to sign an¡¡arbitration¡¡agreement
by means of duress.
Article 18
¡¡¡¡If the arbitration matters¡¡or¡¡the¡¡arbitration¡¡commission¡¡are¡¡not
agreed upon by the parties¡¡in¡¡the¡¡arbitration¡¡agreement,¡¡or,¡¡if¡¡the
relevant¡¡provisions¡¡are¡¡not¡¡clear,¡¡the¡¡parties¡¡may¡¡supplement¡¡the
agreement. If the parties fail to agree upon the supplementary agreement,
the arbitration agreement shall be invalid.
Article 19
¡¡¡¡An arbitration agreement shall exist independently.¡¡Any¡¡changes¡¡to,
rescission, termination or invalidity of the contract shall not affect the
validity of the arbitration agreement.
¡¡¡¡An arbitration tribunal has the right to rule on¡¡the¡¡validity¡¡of¡¡a
contract.
Article 20
¡¡¡¡If the parties object to the validity of¡¡the¡¡arbitration¡¡agreement,
they may apply to the arbitration¡¡commission¡¡for¡¡a¡¡decision¡¡or¡¡to¡¡a
people's court for a¡¡ruling.¡¡If¡¡one¡¡of¡¡the¡¡parties¡¡submits¡¡to¡¡the
arbitration commission for a decision, but the other party¡¡applies¡¡to¡¡a
people's court for a ruling, the people's court shall give the ruling.
¡¡¡¡If the parties contest the validity of the arbitration agreement,¡¡the
objection shall be made before the start¡¡of¡¡the¡¡first¡¡hearing¡¡of¡¡the
arbitration tribunal.

¡¡Chapter IV Arbitration Procedure

¡¡Section 1: Application and Acceptance for Arbitration

Article 21
¡¡¡¡The parties¡¡applying¡¡for¡¡arbitration¡¡shall¡¡fulfil¡¡the¡¡following
conditions:
¡¡¡¡1. they must have an arbitration agreement;
¡¡¡¡2. they must have a specific claim with facts and¡¡argument¡¡on¡¡which
the claim is based; and
¡¡¡¡3. the arbitration must be within the jurisdiction of the¡¡arbitration
commission.
Article 22
¡¡¡¡The party applying for arbitration¡¡shall¡¡submit¡¡to¡¡an¡¡arbitration
commission the arbitration agreement,¡¡an application for arbitration¡¡and
copies thereof.
Article 23
¡¡¡¡An arbitration application shall state clearly the following:
¡¡¡¡1. the name, sex, age, occupation, work unit and address of the party,
the name address and legal representative of the¡¡legal¡¡person¡¡or¡¡other
organization and the name and position of its person-in charge;
¡¡¡¡2. the arbitration claim and the facts and argument on which the claim
is based; and
¡¡¡¡3. evidence and the source of evidence, the name and¡¡address¡¡of¡¡the
witness (es).
Article 24
¡¡¡¡Within 5 days from the date of receiving the arbitration¡¡application,
the arbitration commission shall notify the parties that it considers¡¡the
conditions for acceptance have been fulfilled, and that the application is
accepted¡¡by¡¡it.¡¡If¡¡the¡¡arbitration¡¡commission¡¡considers¡¡that¡¡ the
conditions have not been fulfilled, it shall notify the parties in writing
of its rejection, stating its reasons.
Article 25
¡¡¡¡Upon¡¡acceptance¡¡of¡¡an¡¡arbitration¡¡application,¡¡ the¡¡arbitration
commission shall, within the time limit provided by the Arbitration Rules,
serve a copy of the Arbitration Rules and the list of arbitrators¡¡on¡¡the
applicant,¡¡ and¡¡serve¡¡a¡¡copy¡¡of¡¡the¡¡arbitration¡¡application,¡¡ the
Arbitration Rules and the list of arbitrators on the respondent.
¡¡¡¡Upon receipt of a copy of the arbitration application,¡¡the respondent
shall, within the time limit prescribed by the Arbitration¡¡Rules,¡¡submit
its defence to the arbitration commission. Upon receipt¡¡of¡¡the¡¡defence,
the arbitration commission shall, within the time limit prescribed by¡¡the
Arbitration Rules, serve a copy of the reply on the applicant. The failure
of the respondent to submit a defence shall not affect the¡¡proceeding¡¡of
the arbitration procedures.

Article 26
¡¡¡¡Where the parties had agreed on an arbitration agreement, but¡¡one¡¡of
the parties initiates an action before a people's¡¡court¡¡without¡¡stating
the existence of the arbitration¡¡agreement,¡¡the¡¡people's¡¡court¡¡shall,
unless the arbitration agreement is invalid,¡¡reject¡¡the¡¡action¡¡if¡¡the
other party submits to the court¡¡the¡¡arbitration¡¡agreement¡¡before¡¡the
first hearing of the case. If the other¡¡party¡¡fails¡¡to¡¡object¡¡to¡¡the
hearing by the people's court before the first¡¡hearing,¡¡the¡¡arbitration
agreement shall be considered to have been waived by¡¡the¡¡party¡¡and¡¡the
people's court shall proceed with the hearing.
Article 27
¡¡¡¡The¡¡applicant¡¡may¡¡abandon¡¡or¡¡alter¡¡his¡¡arbitration¡¡claim.¡¡The
respondent may accept the arbitration claim or object¡¡to¡¡it.¡¡It¡¡has¡¡a
right to make a counterclaim.
Article 28
¡¡¡¡A party may apply for property preservation if, as the¡¡result¡¡of¡¡an
act of the other party or for some other reasons, it appears that an award
may be impossible or difficult to enforce.
¡¡¡¡If¡¡one¡¡of¡¡the¡¡parties¡¡applies¡¡for¡¡property¡¡preservation,¡¡ the
arbitration commission shall submit to a people's court the application of
the party¡¡in¡¡accordance¡¡with¡¡the¡¡relevant¡¡provisions¡¡of¡¡the¡¡Civil
Procedure Law.
¡¡¡¡If a property preservation order is¡¡unfounded,¡¡the¡¡applicant¡¡shall
compensate the party against whom¡¡the¡¡order¡¡was¡¡made¡¡for¡¡any¡¡losses
sustained as a result of the implementation of the¡¡property¡¡preservation
order.
Article 29
¡¡¡¡The parties and their legal representatives¡¡may¡¡appoint¡¡lawyers¡¡or
engage agents to handle matters relating to the arbitration. In the¡¡event
that a lawyer or an agent is appointed to handle the arbitration¡¡matters,
a¡¡letter¡¡of¡¡authorization¡¡shall¡¡be¡¡submitted¡¡to¡¡ the¡¡ arbitration
commission.


¡¡Section 2: Composition of the Arbitration Tribunal

Article 30
¡¡¡¡ An¡¡arbitration¡¡tribunal¡¡may¡¡comprise¡¡three¡¡arbitrators¡¡or¡¡one
arbitrator. If an arbitration¡¡tribunal¡¡comprises¡¡three¡¡arbitrators,¡¡a
presiding arbitrator shall be appointed.
Article 31
¡¡¡¡If the parties agree to form an arbitration tribunal comprising¡¡three
arbitrators, each party shall select or¡¡authorize¡¡the¡¡chairmen¡¡of¡¡the
arbitration commission to appoint one¡¡arbitrator.¡¡The¡¡third¡¡arbitrator
shall be selected jointly by the parties or be nominated by¡¡the¡¡chairman
of the arbitration commission in accordance with a joint mandate given¡¡by
the parties. The third arbitrator shall be the presiding arbitrator.
¡¡¡¡If the parties agree to have one arbitrator¡¡to¡¡form¡¡an¡¡arbitration
tribunal, the arbitrator shall be selected jointly by the¡¡parties¡¡or¡¡be
nominated by the chairman of the arbitration commission in accordance with
a joint mandate given by the parties.

Article 32
¡¡¡¡If¡¡the¡¡parties¡¡fail,¡¡within¡¡the¡¡time¡¡limit¡¡prescribed¡¡by¡¡the
Arbitration¡¡Rules,¡¡to¡¡select¡¡the¡¡form¡¡of¡¡the¡¡constitution¡¡of¡¡the
arbitration tribunal or fail to select the¡¡arbitrators,¡¡the¡¡arbitrators
shall be appointed by the chairman of the arbitration commission.
Article 33
¡¡¡¡After¡¡the¡¡arbitration¡¡tribunal¡¡is¡¡constituted,¡¡ the¡¡arbitration
commission shall notify the parties in writing of the composition¡¡of¡¡the
arbitration tribunal.
Article 34
¡¡¡¡In any of the following circumstances,¡¡an¡¡arbitrator¡¡must¡¡withdraw
from the arbitration, and the parties shall have the right¡¡to¡¡apply¡¡for
his withdrawal if he:
¡¡¡¡1. is a party or¡¡a¡¡close¡¡relative¡¡of¡¡a¡¡party¡¡or¡¡of¡¡a¡¡party's
representative;
¡¡¡¡2. is related in the case;
¡¡¡¡3. has some other relationship with a party to¡¡the¡¡case¡¡or¡¡with¡¡a
party's¡¡agent¡¡which¡¡could¡¡possibly¡¡affect¡¡the¡¡impartiality¡¡of¡¡the
arbitration;
¡¡¡¡4. meets a party or his agent in private, accepts¡¡an¡¡invitation¡¡for
dinner by a party or his representative or accepts gifts presented by¡¡any
of them.
Article 35
¡¡¡¡When applying for the withdrawal of¡¡an¡¡arbitrator,¡¡the¡¡petitioning
party shall state his reasons and submit a withdrawal¡¡application¡¡before
the first hearing. A withdrawal application may also be¡¡submitted¡¡before
the conclusion of the last hearing if¡¡reasons¡¡for¡¡the¡¡withdrawal¡¡only
became known after the start of the first hearing.
Article 36
¡¡¡¡Whether an arbitrator is withdrawn or not shall be determined¡¡by¡¡the
chairman of the arbitration commission.¡¡If¡¡chairman¡¡is¡¡serving¡¡as¡¡an
arbitrator, the withdrawal or not shall be determined collectively by¡¡the
arbitration commission.
Article 37
¡¡¡¡If an arbitrator is unable to perform his duties as an arbitrator as a
result of the withdrawal or any other reasons, another arbitrator shall be
selected or appointed in accordance with the provisions of this Law.
¡¡¡¡After a replaced arbitrator has been selected or¡¡appointed¡¡following
the withdrawal of an arbitrator, the¡¡parties¡¡may¡¡apply¡¡to¡¡resume¡¡the
arbitration procedure. The arbitration tribunal¡¡shall¡¡determine¡¡whether
the resumption of the procedure may be allowed. The¡¡arbitration¡¡tribunal
may determine on its¡¡own¡¡whether¡¡the¡¡arbitration¡¡procedure¡¡shall¡¡be
resumed.

Article 38
¡¡¡¡An arbitrator involved in one of the circumstances described¡¡in¡¡Item
4, Article 34, if it is serious,¡¡or those described in¡¡Item¡¡6,¡¡Article
58, such arbitrator shall be legally liable in accordance¡¡with¡¡the¡¡law.
The arbitration¡¡commission¡¡shall¡¡remove¡¡his¡¡name¡¡from¡¡the¡¡list¡¡of
arbitrators.

¡¡Section 3: Hearing and Arbitral Awards

Article 39
¡¡¡¡An arbitration tribunal shall hold¡¡a¡¡tribunal¡¡session¡¡to¡¡hear¡¡an
arbitration case. If¡¡the¡¡parties¡¡agree¡¡not¡¡to¡¡hold¡¡a¡¡hearing,¡¡the
arbitration¡¡tribunal¡¡may¡¡render¡¡an¡¡award¡¡in¡¡accordance¡¡ with¡¡ the
arbitration¡¡application,¡¡the¡¡defence¡¡statement¡¡and¡¡other¡¡documents.
Article 40
¡¡¡¡An arbitration shall not be conducted in public. If the parties¡¡agree
to a public hearing, the arbitration may proceed in public,¡¡except¡¡those
concerning state secrets.
Article 41
¡¡¡¡The arbitration commission shall notify the¡¡two¡¡parties¡¡within¡¡the
time limit provided by the Arbitration Rules of the date of¡¡the¡¡hearing.
Either party may request to postpone the hearing with in¡¡the¡¡time¡¡limit
provided by the Arbitration Rules¡¡if¡¡there¡¡is¡¡a¡¡genuine¡¡reason.¡¡The
arbitration tribunal shall decide whether to postpone the hearing.
Article 42
¡¡¡¡If the applicant for arbitration¡¡who¡¡has¡¡been¡¡given¡¡a¡¡notice¡¡in
writing does not appear before¡¡the¡¡tribunal¡¡without¡¡good¡¡reasons,¡¡or
leaves the tribunal room during a hearing without the¡¡permission¡¡of¡¡the
arbitration tribunal, such applicant shall be deemed as¡¡having¡¡withdrawn
his application.
¡¡¡¡If the party against whom the application was made was served¡¡with¡¡a
notice in writing but does not appear¡¡before¡¡the¡¡tribunal¡¡without¡¡due
reasons¡¡or¡¡leaves¡¡the¡¡tribunal¡¡room¡¡during¡¡a¡¡hearing¡¡without¡¡the
permission of the arbitration tribunal, an award by default may be¡¡given.
Article 43
¡¡¡¡The parties shall produce evidence in support of their claims.
¡¡¡¡An arbitration tribunal may collect on its own evidence¡¡it¡¡considers
necessary.
Article 44
¡¡¡¡For specialized¡¡matters,¡¡an¡¡arbitration¡¡tribunal¡¡may¡¡submit¡¡for
appraisal to an appraisal organ agreed upon¡¡by¡¡the¡¡parties¡¡or¡¡to¡¡the
appraisal organ appointed by the arbitration tribunal¡¡if¡¡it¡¡deems¡¡such
appraisal to be necessary.
¡¡¡¡According¡¡to¡¡the¡¡claim¡¡of¡¡the¡¡parties¡¡or¡¡the¡¡request¡¡of¡¡the
arbitration tribunal, the appraisal organ shall appoint¡¡an¡¡appraiser¡¡to
participate in¡¡the¡¡hearing.¡¡Upon¡¡the¡¡permission¡¡of¡¡the¡¡arbitration
tribunal, the parties may question the appraiser.

Article 45
¡¡¡¡Any evidence shall be produced¡¡at¡¡the¡¡start¡¡of¡¡the¡¡hearing.¡¡The
parties may challenge the validity of such evidence.
Article 46
¡¡¡¡In the event that the evidence might be destroyed or if¡¡it¡¡would¡¡be
difficult to obtain the evidence later on, the parties may apply¡¡for¡¡the
evidence to be preserved. If the parties apply for such preservation,¡¡the
arbitration commission shall submit the¡¡application¡¡to¡¡the¡¡basic-level
people's court of the place where the evidence is located.
Article 47
¡¡¡¡The parties have the right to argue during an¡¡arbitration¡¡procedure.
At the end of the debate,¡¡the presiding arbitrator or the sole arbitrator
shall ask for the final opinion of the parties.
Article 48
¡¡¡¡An arbitration tribunal shall make a written record of the hearing. If
the parties or other participants to the¡¡arbitration¡¡consider¡¡that¡¡the
record has omitted a part of their statement or is incorrect in some other
respect, they shall have the right to request correction¡¡thereof.¡¡If¡¡no
correction is made, the request for¡¡correction¡¡shall¡¡be¡¡noted¡¡in¡¡the
written record.
¡¡¡¡The arbitrators, recorder,¡¡parties¡¡and¡¡other¡¡participants¡¡to¡¡the
arbitration shall sign or affix their seals to the record.
Article 49
¡¡¡¡After the submission of an arbitration application,¡¡the¡¡parties¡¡may
settle¡¡the¡¡dispute¡¡among¡¡themselves¡¡ through¡¡ conciliation.¡¡ If¡¡ a
conciliation agreement has been reached, the¡¡parties¡¡may¡¡apply¡¡to¡¡the
arbitration tribunal for an award based¡¡on¡¡the¡¡conciliation¡¡agreement.
Then may also withdraw the arbitration application.
Article 50
¡¡¡¡If the parties fall back on their words¡¡after¡¡the¡¡conclusion¡¡of¡¡a
conciliation agreement and the withdrawal of the arbitration¡¡application,
application may be made for arbitration in accordance with the arbitration
agreement.
Article 51
¡¡¡¡Before giving an award, an arbitration tribunal may first¡¡attempt¡¡to
conciliate.¡¡If¡¡the¡¡parties¡¡apply¡¡for¡¡conciliation¡¡voluntarily,¡¡the
arbitration tribunal shall conciliate. If conciliation is unsuccessful, an
award shall be made promptly.
¡¡¡¡ When¡¡a¡¡settlement¡¡agreement¡¡is¡¡reached¡¡by¡¡conciliation,¡¡¡¡the
arbitration tribunal shall prepare the conciliation statement or the award
on the basis of the results of the settlement¡¡agreement.¡¡A¡¡conciliation
statement shall have the same legal force as that of an award.

Article 52
¡¡¡¡A conciliation statement shall set forth the¡¡arbitration¡¡claims¡¡and
the results¡¡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.
¡¡¡¡A conciliation statement shall¡¡have¡¡legal¡¡effect¡¡once¡¡signed¡¡and
accepted by the parties.
¡¡¡¡If the parties fall¡¡back¡¡on¡¡their¡¡words¡¡before¡¡the¡¡conciliation
statement is singed and accepted by them, an award shall be¡¡made¡¡by¡¡the
arbitration tribunal promptly.
Article 53
¡¡¡¡An award shall be based on the opinion of¡¡the¡¡majority¡¡arbitrators.
The opinion of the minority arbitrators shall be recorded in¡¡writing.¡¡If
an opinion of the minority arbitrators shall be recorded in writing. If an
opinion of¡¡the¡¡majority¡¡arbitrators¡¡can¡¡not¡¡be¡¡constituted¡¡at¡¡the
tribunal, the award shall¡¡be¡¡given¡¡according¡¡to¡¡the¡¡opinion¡¡of¡¡the
presiding arbitrator.
Article 54
¡¡¡¡The arbitration claims, the matters in dispute, the grounds upon which
an award is given, the results of the judgement,¡¡the¡¡responsibility¡¡for
the arbitration fees and the date of the award shall be set forth¡¡in¡¡the
award. If the parties agree not to include in the¡¡award¡¡the¡¡matters¡¡in
dispute and the grounds on which the award is based, such matters may¡¡not
be stated in the award. The award shall be signed by the¡¡arbitrators¡¡and
sealed by the arbitration commission. The arbitrator¡¡who¡¡disagrees¡¡with
the award may select to sign or not to sign it.
Article 55
¡¡¡¡During the course of arbitration by an arbitration tribunal,¡¡where¡¡a
part of facts has been made clear, a partial award may first be¡¡given¡¡in
relation to that part.
Article 56
¡¡¡¡The parties may, within 30 days of the receipt of the¡¡award,¡¡request
the arbitration tribunal to correct any typographical errors,¡¡calculation
errors or matters which had been awarded but omitted in the award.
Article 57
¡¡¡¡An award shall be legally effective on the date it is given.

¡¡Chapter V Application for Cancellation of an Award

Article 58
¡¡¡¡The parties may apply to the intermediate people's court at the¡¡place
where the arbitration commission is located for cancellation of¡¡an¡¡award
if they provide evidence proving¡¡that¡¡the¡¡award¡¡involves¡¡one¡¡of¡¡the
following circumstances:
¡¡¡¡1. there is no arbitration agreement between the parties;
¡¡¡¡2. the matters of the award are beyond the extent of¡¡the¡¡arbitration
agreement or not within the jurisdiction of the arbitration commission;
¡¡¡¡3. the composition of the¡¡arbitration¡¡tribunal¡¡or¡¡the¡¡arbitration
procedure is in contrary to the legal procedure;
¡¡¡¡4. the evidence on which the award is based is falsified;
¡¡¡¡5. the other party has¡¡concealed¡¡evidence¡¡which¡¡is¡¡sufficient¡¡to
affect the impartiality of the award; and
¡¡¡¡6. the arbitrator(s) has (have) demanded or accepted bribes, committed
graft or perverted the law in making the arbitral award.
¡¡¡¡The peoples' court shall rule to cancel the award if the existence¡¡of
one of the circumstances prescribed in the preceding clause¡¡is¡¡confirmed
by its collegiate bench.
¡¡¡¡The people's court shall rule to cancel the award if it holds that the
award is contrary to the social and public interests.
Article 59
¡¡¡¡If a party applies for cancellation of an award, an application¡¡shall
be submitted within 6 months after receipt of the award.
Article 60
¡¡¡¡The people's court¡¡shall,¡¡within¡¡2¡¡months¡¡after¡¡receipt¡¡of¡¡the
application¡¡for¡¡cancellation¡¡of¡¡an¡¡award,¡¡render¡¡its¡¡decision¡¡for
cancellation of the award or for rejection of the application.
Article 61
¡¡¡¡If the people's court holds that the case may be re-arbitrated by¡¡the
arbitration tribunal after receipt of the application for cancellation¡¡of
an¡¡award,¡¡the¡¡court¡¡shall¡¡ inform¡¡ the¡¡ arbitration¡¡ tribunal¡¡ of
re-arbitrating the case within a¡¡certain¡¡period¡¡of¡¡time¡¡and¡¡rule¡¡to
suspend the cancellation procedure. If the arbitration tribunal refuses to
re-arbitrate, the people's court shall rule¡¡to¡¡resume¡¡the¡¡cancellation
procedure.


¡¡Chapter VI Enforcement

Article 62
¡¡¡¡The parties shall execute an arbitration award. If one party fails¡¡to
execute the award, the other party may¡¡apply¡¡to¡¡a¡¡people's¡¡court¡¡for
enforcement in accordance¡¡with¡¡the¡¡relevant¡¡provisions¡¡of¡¡the¡¡Civil
Procedure Law, and the court shall enforce the award.
Article 63
¡¡¡¡A people's court shall, after¡¡examination¡¡and¡¡verification¡¡by¡¡its
collegiate bench, rule not to enforce an award if the party¡¡against¡¡whom
an application for enforcement is made provides evidence proving that¡¡the
award involves one of the circumstances prescribed in¡¡Clause¡¡2,¡¡Article
217 of the Civil procedure Law.
Article 64
¡¡¡¡If one party applies for enforcement of an award while the other party
applies for cancellation of the award, the people's court¡¡receiving¡¡such
application shall rule to suspend enforcement of the award.
¡¡¡¡If a people's court rules¡¡to¡¡cancel¡¡an¡¡award,¡¡it¡¡shall¡¡rule¡¡to
terminate enforcement. If the people's court overrules the application for
cancellation of an award, it shall rule to resume enforcement.

¡¡Chapter VII Special provisions on Foreign-Related Arbitration

Article 65
¡¡¡¡The provisions of this Chapter¡¡shall¡¡apply¡¡to¡¡all¡¡arbitration¡¡of
disputes arising from foreign economic,¡¡trade, transportation or maritime
matters. In the absence of provisions¡¡in¡¡this¡¡Chapter,¡¡other¡¡relevant
provisions of this Law shall apply.
Article 66
¡¡¡¡A foreign arbitration commission may be organized and¡¡established¡¡by
the China International Chamber of Commerce.
¡¡¡¡A foreign arbitration commission shall comprise one chairman,¡¡several
vice-chairmen and several committee members.
¡¡¡¡The chairman, vice-chairmen and committee members may be appointed¡¡by
the China International Chamber of Commerce.
Article 67
¡¡¡¡ A¡¡foreign¡¡arbitration¡¡commission¡¡may¡¡appoint¡¡ foreigners¡¡ with
professional knowledge in such fields as law, economic and trade,¡¡science
and technology as arbitrators.
Article 68
¡¡¡¡If the parties to a foreign-related¡¡arbitration¡¡apply¡¡for¡¡evidence
preservation,¡¡the¡¡foreign¡¡arbitration¡¡commission¡¡shall¡¡submit¡¡their
applications to the intermediate people's court in¡¡the¡¡place¡¡where¡¡the
evidence is located.
Article 69
¡¡¡¡The arbitration tribunal¡¡of¡¡a¡¡foreign¡¡arbitration¡¡commission¡¡may
record the details of the hearing in writing or record the¡¡essentials¡¡of
the hearing in writing. The written record¡¡of¡¡the¡¡essentials¡¡shall¡¡be
signed or sealed by the parties and other participants in the arbitration.
Article 70
¡¡¡¡A people's court shall, after¡¡examination¡¡and¡¡verification¡¡by¡¡its
collegiate bench, rule to cancel an award if a party to the case¡¡provides
evidence¡¡proving¡¡that¡¡the¡¡arbitration¡¡award¡¡involves¡¡one¡¡ of¡¡ the
circumstances prescribed in Clause 1, Article 260 of the Civil Procedure
Law.
Article 71
¡¡¡¡A people's court shall, after¡¡examination¡¡and¡¡verification¡¡by¡¡its
collegiate bench, rule not to enforce an award-if the party¡¡against¡¡whom
an application is made provides¡¡evidence¡¡proving¡¡that¡¡the¡¡arbitration
award involves one of the circumstances prescribed in Clause¡¡1,¡¡ Article
260 of the Civil Procedure Law.
Article 72
¡¡¡¡Where the party subject to enforcement or its property is¡¡not¡¡within
the territory of the People's Republic of China, a party applying for¡¡the
enforcement of a legally effective arbitration award shall apply¡¡directly
to the foreign court having jurisdiction for recognition¡¡and¡¡enforcement
of the award.

Article 73
¡¡¡¡Foreign arbitration rules 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 stipulated¡¡a¡¡time¡¡limitation¡¡of¡¡arbitration,¡¡such
provisions of the law shall apply. If the law has not¡¡stipulated¡¡a¡¡time
limitation of arbitration,¡¡the provisions on the¡¡limitation¡¡of¡¡actions
shall apply.
Article 75
¡¡¡¡The arbitration Commission may formulate provisional arbitration rules
in accordance with this Law and¡¡the¡¡relevant¡¡provisions¡¡of¡¡the¡¡Civil
Procedure Law before the formulation of the arbitration rules by the China
Arbitration Association.
Article 76
¡¡¡¡The parties shall pay arbitration fees in accordance with the relevant
provisions.
¡¡¡¡The methods for the collection of arbitration fees shall be¡¡submitted
to the commodity prices administration department for approval.
Article 77
¡¡¡¡ Arbitration¡¡of¡¡labor¡¡disputes¡¡and¡¡disputes¡¡over¡¡contracts¡¡for
undertaking agricultural projects within agricultural collective¡¡economic
organizations shall be separately stipulated.
Article 78
¡¡¡¡In the¡¡event¡¡of¡¡conflict¡¡between¡¡the¡¡provisions¡¡on¡¡arbitration
formulated before the coming into effect of this Law and the provisions of
this Law, the provisions of this Law shall prevail.
Article 79
¡¡¡¡Arbitration organs established before the coming into effect¡¡of¡¡this
Law in the municipalities directly under the Central¡¡Government,¡¡in¡¡the
municipalities¡¡where¡¡the¡¡people's¡¡governments¡¡of¡¡the¡¡provinces¡¡ or
autonomous regions and in other cities¡¡divided¡¡into¡¡districts¡¡must¡¡be
re-organized in accordance with the relevant provisions of this¡¡Law.¡¡The
arbitration organs which are not re-organized shall be terminated¡¡at¡¡the
expiration of one year after the date of effectiveness of this Law.
¡¡¡¡All other arbitration organs established before the implementation¡¡of
this Law and not conforming¡¡to¡¡the¡¡provisions¡¡of¡¡this¡¡Law¡¡shall¡¡be
terminated on the date of effectiveness of this Law.
Article 80
¡¡¡¡This Law shall be effective as of September 1, 1995.