Updated PRC Arbitration Law comes into effect

A revised version of the PRC Arbitration Law comes into effect today (1 March 2026), marking the most significant update to the legislation since it was originally enacted in 1995.

The most notable changes relate to foreign-related arbitration, including provisions on the seat of arbitration (Article 81), permitting offshore institutions to administer foreign-related cases from certain areas (Article 86), and allowing ad hoc arbitration in designated areas (Article 82).

Other significant changes include: a clear statutory framework for the enforcement of foreign awards (Article 88); a new mechanism allowing co-arbitrators to jointly appoint the presiding arbitrator where there is party consent (Article 43), and an expansion of arbitrator disclosure obligations to bring them in line with international standards (Article 45), both of which codify practices already reflected in the rules of major PRC arbitral institutions; various provisions relating to the scope of tribunal powers; and a reduction in the time limit for applying to set aside an arbitral award from 6 to 3 months, consistent with the UNCITRAL Model Law (Article 72).

For more information, see our previous blog (available here) and look out for more coverage of the updated legislation in the upcoming issue of Inside Arbitration, Herbert Smith Freehills Kramer's flagship arbitration publication, which will be launched later this month and in which we will provide an in-depth review of the most notable changes related to foreign-related arbitration.

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.