New PRC Arbitration Law: The key developments for foreign-related arbitration

Conclusion

The recent revisions to China’s foreign‑related arbitration regime may be seen as a natural progression. They build on the incremental evolution of judicial practice and respond to the demand, arising from Chinese enterprises’ deeper integration into the global trade system, for dispute resolution mechanisms that are more open, flexible, and internationally aligned.

According to the 2025 International Arbitration Survey by Queen Mary University of London, Beijing, Shanghai and Shenzhen rank among the world’s ten most popular seats. In particular, Beijing ranked 4th (selected by 20% of respondents), Shenzhen 6th (19%), and Shanghai 8th (11%). In line with this trend, China is seeking to position itself as a venue for international commercial arbitration, and the recent amendments reflect closer alignment with international practice.

It is worth noting that, in moving towards international norms, the revisions introduced by the New Arbitration Law adopt a gradual and cautious approach, rather than a radical overhaul. This approach represents a measured response to existing realities, including uneven development within China’s arbitration landscape and differing levels of maturity among market participants. It also suggests that the effectiveness of the reforms will depend, to a significant extent, on their implementation in judicial practice. We will continue to monitor developments.

This article has been authored by Herbert Smith Freehills Kewei, a joint operation between Herbert Smith Freehills Kramer LLP and Shanghai Kewei Law Firm based in the Shanghai Free Trade Zone, which is exclusively responsible for any statements or commentary in relation to PRC law.