Jue Jun Lu writes for LexisNexis Arbitration UK on key reforms under newly revised arbitration law in China
China has introduced a landmark overhaul of its arbitration framework with the release of the 2025 PRC Arbitration Law, marking the first major revision since the legislation was originally enacted.
The reforms, due to take effect on 1 March 2026, aim to modernise arbitral practice and strengthen China’s position as a venue for international dispute resolution.
Following the consultation process in 2021 and various draft proposals in 2024, the 2025 PRC Arbitration Law marks the first major overhaul of the current Arbitration Law since it came into force in 1995. The reforms introduced in the 2025 PRC Arbitration Law form part of a wider effort to enhance the appeal and credibility of international arbitration in China, as it vies for greater involvement in the resolution of cross-border commercial and investment treaty disputes.
Jue Jun Lu, Partner in our Dispute Resolution team with a focus on International Arbitration, writes on the topic for LexisNexis Arbitration UK in a collaborative article with Gustavo Moser and Jennifer Puntis. In the article, the authors look at some of the most significant changes in the 2025 PRC Arbitration Law and assess the key advantages and potential pitfalls of opting for Chinese arbitration as a means of resolving cross-border disputes.
Commenting on he implications of the new law and its reception among arbitration practitioners, the authors write:
The 2025 PRC Arbitration Law has introduced extensive reforms including formally recognising the “seat” of an arbitration, permitting ad hoc arbitrations in free trade zones and for certain disputes, and aligning arbitrator disclosure obligations with international best practice. Additional measures such as allowing arbitrations to be conducted online and shortening timeframes to set aside awards will help improve efficiencies of the arbitral process and enforcement actions in the PRC. These reforms will be well-received by arbitration practitioners and users alike.
"However, the final package of reform is less extensive than draft amendments previously consulted and the 2025 PRC Arbitration Law represents a significant yet cautious step towards alignment with international best practice. Given this, parties considering arbitration in China should assess the new regime carefully and weigh up the potential pitfalls such as the lack of tribunal-ordered interim relief and the continued role of Chinese courts on the issue of jurisdiction.
Read the full article in LexisNexis Arbitration UK here (subscription required).
