Jurisdiction(s):
United Kingdom

Key definition

Arbitration agreement definition

What does Arbitration agreement mean? An arbitration agreement is the parties’ agreement to refer present or future disputes to arbitration instead of litigating in court. It is usually an arbitration clause in the main contract or a separate submission agreement, and typically sets the seat of arbitration, the appointing mechanism for the tribunal, the number of arbitrators and any institutional rules. It does not itself appoint the arbitrator, and the arbitrator is not a party to the arbitration agreement. The concept is defined in legislation: section 6 of the Arbitration Act 1996 (England, Wales and Northern Ireland), section 4 of the Arbitration...

Ad hoc arbitration in China: validity, choice of law and seat, arbitrator selection, FTZ and maritime exceptions, enforcement, and the 2025 Arbitration Law revision effective 1 March 2026

Published by a LexisNexis Arbitration expert

Practice notes

This Practice Note examines ad hoc arbitration in China within the framework of Chinese law. China International Commercial Court. For a broader overview of ad hoc arbitration, see Practice Note: Ad hoc arbitration—an introduction to the key features of ad hoc arbitration.

Requirement to provide an administering institution

Arbitration in China falls under the Arbitration Law (promulgated by the Standing Committee of the National People’s Congress on 31 August 1994, effective from 1 September 1995, and amended in 2009, 2017 and 2025) (the Arbitration Law). Article 16 of the Arbitration Law mandates that parties to an arbitration agreement designate an institution in their agreement to administer the proceedings. This has been read as invalidating awards rendered in ad hoc arbitrations—i.e., proceedings conducted without institutional administration. Note that Chinese courts do not recognise precedent, and therefore there is no binding case law on this issue. Nonetheless, the stipulation that an arbitral institution must manage the process has not been applied strictly in practice in China. Importantly, the revised Arbitration Law, taking effect on 1 March 2026, conditionally recognises ad hoc arbitration for defined categories of disputes, signalling a notable shift in China’s arbitration framework...

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Jiamu Sun

Loeb & Loeb

Jiamu Sun focuses her practice on representing foreign companies and individuals in cross-border dispute resolution proceedings, white-collar defense proceedings, administrative defense cases, collection and enforcement of secured interest rights, internal ethics investigations, and general commercial litigation. She has particular experience in data privacy and security issues, national security, e-commerce, media law and regulatory compliance. Jiamu often provides legal support for foreign news organizations and journalists in China in security and regulatory matters, as well as defending claims of libel/defamation and invasion of privacy....

James Zimmerman

Loeb & Loeb

James M. Zimmerman is a Beijing-based lawyer and writer who has lived and worked in China for more than twenty-six years. He is among China’s leading foreign lawyers and represents companies and individuals confronted with the political and legal complexities of doing business in Mainland China. He is the former four-term chairman of the American Chamber of Commerce in China. James is the author of the acclaimed book, The Peking Express: The Bandits Who Stole A Train, Stunned the West, and Broke the Republic of China. Released: April 4, 2023. See www.ThePekingExpress.com. Mr. Zimmerman is also the author of The China Law Deskbook, a publication of the American Bar Association (1999-2015). Mr. Zimmerman is a Partner in the Beijing office of the international law firm of Loeb & Loeb LLP....

Web page updated on 21/05/2026

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