Issued by:    Standing Committee of the National People's Congress
Issue No.:    Order of the President of the People's Republic of China No. 54
Release Date:    September 12, 2025
Effective date:    March 1, 2026
Links:    http://www.npc.gov.cn/npc/c2/c30834/202509/t20250912_447762.html
This Revision comprehensively restructures China's arbitration system by integrating the practical needs of domestic arbitration and the development trends of international arbitration, aiming to enhance the credibility and international competitiveness of arbitration in China. The main contents are as follows:
Establishment of the legal validity of online arbitration. The new law explicitly stipulates that arbitration activities may be conducted online via information networks. Unless the parties explicitly express objection, online arbitration activities shall have the same legal effect as offline arbitration activities.
Clarification of the independence of arbitration agreements. The validity of an arbitration agreement is not affected by whether the contract is formed, not yet effective, or rescinded. This means the arbitration agreement, as a procedural contract for dispute resolution, exists independently and is not influenced by the substantive contract to which it refers. 
Introduction of preservation measures for conduct and pre-arbitration. The new law explicitly provides that parties in arbitration proceedings may apply for conduct preservation, i.e., request an order compelling the other party to perform a specific act or prohibiting them from performing a specific act. Furthermore, pre-arbitration preservation measures are introduced, specifying that in urgent circumstances, parties may directly apply to the People's Court for preservation before initiating arbitration. This eliminates the previous requirement for a prior review by the arbitration commission, thereby better safeguarding the rights and interests of the parties.
Disclosure of arbitrator’s conflicts of interest. The new law introduces a system for the disclosure of information by arbitrators, specifying that if circumstances exist which may lead a party to reasonably doubt the arbitrator's independence or impartiality, the arbitrator shall promptly disclose this in writing to the arbitration institution. The arbitration institution shall notify the parties in writing of the arbitrator's written disclosure and the composition of the arbitral tribunal.
Reduction of the time limit for applying to set aside an arbitral award. The new law shortens the time limit for parties to apply to set aside an arbitral award from six months to three months, urging parties to exercise their rights in a timely manner.
Improvement of the foreign-related arbitration system
1）Broadening the scope of foreign-related arbitration. The new law expands the scope of foreign-related arbitration cases to include "other foreign-related disputes," providing a legal basis for emerging foreign-related disputes.
2）Introduction of the internationally recognized concept of "Seat of Arbitration." The new law explicitly stipulates that the parties may agree in writing on the seat of arbitration, which shall serve as the basis for determining the applicable law of the arbitration procedure and the competent court.
3）Introduction of "Ad Hoc Arbitration” for the first time. The new law permits parties involved in foreign-related maritime disputes or foreign-related disputes between enterprises within Pilot Free Trade Zones, the Hainan Free Trade Port, and other areas designated by the state to choose between institutional arbitration and ad hoc arbitration. If ad hoc arbitration is chosen, China must be the designated seat of arbitration, and the case must be registered with the arbitration association within three working days after the constitution of the arbitral tribunal.