Introduction
Arbitration is very important for non-Chinese businesses dealing with Chinese businesses, because it is the most common mechanism for resolving Sino-foreign contractual disputes. There are good reasons for this, given the relative weakness of the Chinese court system and the restrictions on enforcing foreign judgments in China. However, businesses familiar with arbitrating disputes in Europe, North America or Australia often find Chinese arbitration law and practice rather confusing and, in some cases, objectionable.
The arbitration options recognised by Chinese law are more restrictive than in the countries from which most foreign investment in China originates. The process is significantly different as well. However, much published material on the subject does not help much in getting to grips with the reality, in that it tends to be (at one extreme) idealised and unrealistic, refusing to acknowledge problems or (at the other) rather jaded and skeptical, giving the
