Interpreting The PRC Arbitration Law

In line with China’s commitment to improve its dispute resolution system, the Supreme People’s Court of the People’s Republic of China issued its "Interpretation on Certain Application Issues of the PRC Arbitration Law" ("Interpretation") clarifying issues on the validity and interpretation of arbitration clauses commonly used in PRC related commercial agreements. The Interpretation came into effect on 8 September 2006.

The Interpretation gives clarification on inter alia the following issues :-

1. Forms of written arbitration agreement;
2. Whether parties may agree on both litigation and arbitration for resolving disputes;
3. Determination of arbitration institution in the absence of clear explicit agreement;