Governing Law in International Arbitration

In accordance with The Law of Choice of Law Applicable in International Civil Relations of the People's Republic of China, the parties may make an express choice of the law to govern their international civil relations and their contracts, including arbitration agreements. Where the parties choose to apply the law of a foreign country, they shall provide such law. Where the laws of a foreign country to be applied cannot be ascertained or do not have applicable provisions, the laws of the PRC shall apply. In the absence of a choice, their arbitration agreement shall be governed by the law of the jurisdiction where the arbitration commission or seat of arbitration is located.

Where the laws of the People's Republic of China have mandatory provisions regarding international civil relations, such mandatory provisions shall apply directly without giving effect to the choice of law provisions. Where the application of foreign laws will cause damage to the public interests of the PRC, the laws of the PRC shall apply.

According to the Arbitration Rules of CIETAC and SCIA, the law applicable to the merits of the dispute agreed upon the parties shall prevail, and the arbitral tribunal shall determine the law applicable to the merits of the dispute in the absence of such an agreement or where such agreement is in conflict with a mandatory provision of the laws of the PRC.

The review of the validity of an international arbitration agreement shall also be governed by the law agreed upon by the parties, or the law of the place of arbitration if the parties have not agreed upon the governing law but have agreed upon the place of arbitration, or the law of the forum if neither governing law nor place of arbitration has been agreed upon or no place of arbitration has been expressly agreed upon.

For other provisions pertaining to governing law or choice of law, please refer to Attachment 5: The Law of Choice of Law Applicable in International Civil Relations of the People's Republic of China.

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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China International Arbitration Lawyers, membered by international lawyers and arbitrators experienced in international arbitration and litigation practising in Shanghai, authors of tens of published works.
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