Scope of Arbitration - Arbitrable Disputes

In addition to the status of disputing parties, the scope of disputes that can be arbitrated is also limited. Article 2 of The Arbitration Law generally describes the scope of arbitrable disputes as “disputes arising out of or in connection with contracts or over property rights or interests”. And if the parties summarily agree that any dispute arising from or relating to a contract shall be referred to arbitration, any dispute arising from or relating to the conclusion, validity, alteration, transfer, performance, liability for breach, interpretation, or termination of the contract shall be referred to arbitration.

In addition, disputes that may be arbitrated are listed in other laws, regulation, and rules applicable in different special fields, including but not limited to:

a.      Disputes over partnership issues

The second paragraph of The Partnership Law of the People's Republic of China (August 27, 2006) states,

“Article 103 …

In case of any dispute arising from a partner's performance of the partnership agreement, the partners may settle the dispute through negotiation or mediation. If they are unwilling or fail to settle through negotiation or mediation, they may file a request for arbitration with the arbitration institution agreed upon in accordance with the arbitration clause in their partnership agreement or the written arbitration agreement reached after the dispute arises. In the absence of an arbitration clause in their partnership agreement or if they fail to reach a written arbitration agreement after the dispute arises, they may file a lawsuit with a people's court of competent jurisdiction.”

b.     Labour disputes between employers and employees

The Labor Dispute Mediation and Arbitration Law of the People's Republic of China (December 29, 2007) states,

“Article 2 This Law shall apply to the following labor disputes between employers and employees within the territory of the People's Republic of China:

(1)   Disputes arising from the confirmation of employer-employee relationship;

(2)   Disputes arising from the conclusion, performance, alteration, expiry, or termination of employment contracts;

(3)   Disputes arising from disqualification, dismissal, resignation, or termination of employment;

(4)   Disputes arising from working hours, holidays and vacation, social insurance, welfare, training, or labor protection;

(5)   Disputes arising from remuneration, medical costs for occupational injuries, economic compensation or indemnification; or

(6)   Other labor disputes stipulated by laws and regulations.”

c.      Disputes over copyrights

The Copyright Law of the People's Republic of China (February 26, 2010) states,

“Article 55 A dispute over copyright may be referred to mediation, or to arbitration in accordance with the written arbitration agreement reached between the disputing parties or the arbitration clause in their copyright contract.

In the absence of a written arbitration agreement between the disputing parties or an arbitration clause in their copyright contract, either disputing party may directly bring a lawsuit to a people's court of competent jurisdiction”.

d.     Disputes over consumers' rights and interests

The Consumers' Rights and Interests Protection Law of the People's Republic of China (October 26, 2013) states,

“Article 39 In case of a dispute between a consumer and a business over the consumer's rights and interests, the consumer may:

(1)   negotiate with the business to reach a settlement;

(2)   refer the dispute to a consumers association or other mediation organization established according to law for mediation;

(3)   complain to a competent administrative authority;

(4)   refer the dispute to the arbitration institution agreed upon by the parties in accordance with the arbitration agreement reached with the business; or

(5)   file a lawsuit with a people's court of competent jurisdiction.”

e.      Disputes in railway traffic accidents

The Railways Law of the People's Republic of China (April 24, 2015) states,

“Article 32 In case of a dispute arising from or in connection with a railway transport contract, the railway transporter, as one party, and the shipper, consignee or passenger, as the other party, under the contract may settle the dispute through mediation. If they are unwilling or fail to settle through mediation, either party may submit the dispute to the arbitration institution agreed upon by the parties and with competent jurisdiction according to law in accordance with the arbitration clause in their contract or the written arbitration agreement reached after the dispute arises.

Where either party fails to comply with the arbitration award within the specified period of time, the other party may file a petition for enforcement with a people's court of competent jurisdiction.

In the absence of an arbitration clause in their contract or if the parties fail to reach a written arbitration agreement after the dispute arises, either party may file a lawsuit with a people's court of competent jurisdiction.”

f.      Disputes between Chinese and foreign cooperators

The Sino-Foreign Cooperative Ventures Law of the People's Republic of China (September 6, 2016) states,

“Article 26 Disputes arising between the Chinese and foreign parties in the performance of their cooperation contracts or articles of association shall be first settled through negotiation or mediation. If they are unwilling or fail to settle their disputes through negotiation or mediation, they may refer their disputes to an arbitration institute in the PRC or other country or region agreed upon in accordance with the arbitration clause in their cooperation contract or an arbitration agreement reached either before or after the disputes arise.

If their cooperation contract does not contain an arbitration clause and they fail to reach a written arbitration agreement after a dispute arises, either party may bring a lawsuit before a competent court in the PRC.”

g.      Disputes between tourists and tourism businesses

The Tourism Law of the People's Republic of China (November 5, 2018) states,

“Article 92 A dispute between a tourist and a tourism business may be resolved:

(1)   through negotiation by the disputing parties;

(2)   through mediation by a competent consumers association, tourism complaint acceptance agency or a qualified mediation organization;

(3)   by submitting the dispute to the arbitration institution in accordance with the arbitration agreement reached between and by disputing parties; or

(4)   by filing a lawsuit with a people's court of competent jurisdiction.”

h.     Disputes over product quality

The Product Quality Law of the People's Republic of China (January 7, 2019) states,

“Article 47 In case of a civil dispute over product quality, the disputing parties may settle the dispute through negotiation or mediation. If they are unwilling or fail to settle through negotiation or mediation, either party may file a request for arbitration with the arbitration institution agreed upon in accordance with their arbitration agreement. In the absence of an arbitration agreement or if their arbitration agreement is invalid, either party may file a lawsuit with a people's court of competent jurisdiction.”

i.       Disputes in marine traffic accidents

The Maritime Traffic Safety Law of the People's Republic of China (April 29, 2021) states,

“Article 115 In the case of a civil dispute in a maritime traffic accident, the disputing parties may refer their dispute to arbitration or file a lawsuit before a people's court according to law.”

j.       Disputes over sports issues

The Sports Law of the People's Republic of China (June 24, 2022) states,

“Article 92 The following disputes may be referred to sports arbitration in accordance with the arbitration agreement between the disputing parties, the articles of association of the sports organization, and the rules of sports event:

(1)   Disputes arising from dissatisfaction with the decisions made by social organizations of sports, administrative entities of athletes or organizers of sports events in accordance with the provisions of doping control or other administrative regulations on disqualifying athletes from sport events, cancellation of competition results, suspension, etc;

(2)   Disputes arising from the registration and exchange of athletes; or

(3)   Other disputes in competitive sports activities.

The arbitrable disputes stipulated in The Arbitration Law of the People's Republic of China and the labor disputes stipulated in The Labor Dispute Mediation and Arbitration Law of the People's Republic of China are not within the scope of sports arbitration.

Practising lawyers

Robert Zhang

An international arbitration lawyer registered in Shanghai, China. Master's degr…

Steve Li

An international arbitration lawyer registered in Shanghai, China. Master's degr…

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