Ad Hoc Arbitral Awards Made In Hong Kong Enforceable In The Mainland

The Supreme People's Court (SPC) has confirmed that 'ad hoc' arbitral awards made in Hong Kong are enforceable in mainland China.

Background

'Ad hoc' arbitration is arbitration proceedings which do not involve an arbitration institution or commission. This can be compared with 'institutional arbitration' where the rules of an institution (such as CIETAC or the ICC) govern the arbitration.

PRC law does not permit 'ad hoc' arbitration. An award from an 'ad hoc' arbitration which has the seat of the arbitration in the Mainland will not be enforceable in the Mainland. Instead, all arbitrations in the Mainland must be governed by the rules of an arbitration institution or commission.