China's draft revision to its Arbitration Law, aimed at enhancing oversight and international cooperation, has advanced to a second review by the National People's Congress (NPC) Standing Committee. The proposed changes seek to address fraudulent arbitration practices while aligning the country's framework with global standards.
The revised law introduces measures to reject arbitration claims involving fabricated evidence or collusion that threatens national interests, public welfare, or third-party rights. This marks a significant step toward maintaining the integrity of arbitration processes amid China's growing role in cross-border commerce.
Key provisions focus on strengthening ties between Chinese arbitration institutions and overseas counterparts, including participation in formulating international arbitration rules. The draft also clarifies procedures for recognizing and enforcing foreign arbitration awards through intermediate courts, based on international treaties or reciprocity principles.
Analysts suggest the reforms could boost confidence among foreign businesses operating in the Chinese mainland, particularly as cross-border disputes increase alongside regional economic integration. Legal experts note the revisions reflect China's commitment to creating a predictable environment for international investors while safeguarding domestic legal interests.
