Evolution of Arbitration System under the China FTZ Template

The construction of China’s free trade zones (FTZs) has levered the evolution of the arbitration regime in the People’s Republic of China (PRC). Under the FTZ template, breakthroughs in arbitration have been made in regulations, FTZ arbitration rules, arbitral proceedings and judicial practice. The development of FTZ arbitration mechanism is highlighted with the introduction of new concepts, such as ad hoc arbitration consolidation of arbitration joinder of third parties and model cases, and with the updated or expanded interpretation of the existing concepts, such as permission for the offshore arbitration for WFOEs and FIEs interim measures arbitration in combination with mediation, and the open panel of arbitrators. Regardless of the progress, many issues related to the FTZ arbitration need to be clarified, among which is the amendment of the PRC Arbitration Law and keeping it in line with the mainstream international arbitration, constitute probably the most effective way to promote and guarantee the arbitration evolution.