Arbitration and mediation

Contracts related to foreign investments in China usually stipulate that any disputes arising between the parties should be settled by amicable negotiation, followed by arbitration in case of failure of agreement.

Resolutions to disputes by arbitration are also recognised in foreign-related laws in China. Foreign-related arbitration in China is now mainly administered by the China International Economic and Trade Arbitration Commission (CIETAC).

According to the Arbitration Law of China, an arbitration agreement (which is usually set out as one of the clauses in the contracts) must be in writing and contain the following particulars:

  • An indication of intention to apply for arbitration
  • The arbitration matter
  • The selected arbitration commission

Mediation is usually not used to resolve disputes in China.

(End of chapter 7 - Arbitration and mediation)

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