Drafting Arbitration Agreements for Arbitrations Seated in Mainland China

Drafting an arbitration agreement providing for potential disputes to be arbitrated in mainland China is a task which arises with ever more frequency and which presents a unique set of challenges. Dispute resolution by way of arbitration is the predominant choice for European and U.S. companies doing business with Chinese parties. European and U.S. companies in contractual relationships with Chinese parties generally prefer arbitration agreements that foresee arbitrations seated outside of mainland China and administered by an internationally recognized arbitral institution. This represents familiar terrain.

Yet what if the Chinese party to a contract insists on agreement to a seat of arbitration in mainland China?

This memo addresses the main issues in the drafting of arbitration agreements with a seat in mainland China where the potential dispute is foreign-related.