Certain Reforms of China’s Arbitration Law and the Impact on Foreign Parties

This article examines the limitations of China's Arbitration Law of 1994 and the proposed reforms to the system set out in the Exposure Draft, which aim to modernize the system, particularly for foreign parties. The article addresses the absence of the term ‘place of arbitration’ and the non-recognition of ad hoc arbitration in China’s Arbitration Law, which contrasts with global norms such as the New York Convention and UNCITRAL Model Law. The Exposure Draft introduces pivotal changes, including the specification of the place of arbitration and the formal recognition of ad hoc arbitration. Furthermore, the draft enhances the role of interim measures, extending beyond the preservation of property and evidence to encompass the preservation of conduct. It also permits the implementation of pre- and post-arbitration measures by both courts and arbitral tribunals. In conclusion, the revisions proposed in the Exposure Draft represent a substantial step towards the internationalization of China's arbitration system. They hold the potential to facilitate a more efficient, cost-effective and confidential process for foreign parties. The amendments are designed to enhance the attractiveness of China as a venue for cross-border dispute resolution, while also providing a robust, flexible, and equitable legal mechanism that reflects China's commitment to align with international arbitration practices