Measures of Shanghai Municipality for Promoting Ad Hoc Arbitration in Foreign-related Commercial and Maritime Affairs

Article 1 With a view to proactively exploring ad hoc arbitration in foreign-related commercial and maritime sectors, these Measures are formulated in accordance with the national plan and the relevant provisions of the Regulations of Shanghai Municipality on Promoting the Initiative for an International Commercial Arbitration Center (hereinafter referred to as the Regulations), and in light of the actual conditions of this Municipality.

Article 2 For the purposes of these Measures, the ad hoc arbitration refers to arbitration activities conducted in foreign-related commercial and maritime sectors in accordance with Paragraph 1 of Article 20 of the Regulations, that take Shanghai as the arbitration seat, follow specific arbitration rules, and are conducted by specific personnel.

Article 3 Ad hoc arbitration may be conducted, as agreed, for the following foreign-related commercial and maritime disputes:

1. between enterprises registered in Shanghai;

2. between enterprises registered in Pudong New Area of Shanghai and domestic or overseas parties;

3. between enterprises registered in the pilot free trade zones within the Chinese territory; and

4. between overseas enterprises

Parties to a foreign-related maritime dispute may agree to resolve their dispute through ad hoc arbitration.

Where the State provides otherwise, such provisions shall prevail.

Article 4 Ad hoc arbitration activities shall adhere to the principles of good faith, fairness, independence, autonomy of will, efficiency and economy, without infringing upon the State's sovereignty, security, or development interests, or public interests or third parties' legitimate rights and interests, and without violating the mandatory provisions of laws and administrative rules.

Article 5 The parties may select arbitrators for ad hoc arbitration cases through the following methods:

1. selection from the list of recommended arbitrators for ad hoc arbitration published by the Shanghai Arbitration Commission; or

2. selection from the lists of arbitrators of the arbitration institutions legally-registered in this Municipality or the business offices established by renowned overseas arbitration and dispute-resolution institutions (hereinafter referred to as the overseas arbitration business offices).

The parties may also agree to appoint arbitrators for ad hoc arbitration cases who meet the qualifications specified in the Arbitration Law of the People's Republic of China (hereinafter referred to as the Arbitration Law) through an arbitration institution legally-registered in this Municipality, or an overseas arbitration business office, or by requesting assistance from the Shanghai Arbitration Commission.

Where the State provides otherwise, such provisions shall prevail.

Article 6 The Shanghai Arbitration Commission as well as industry associations and chambers of commerce that are registered with the national or Shanghai municipal government's civil affairs departments are supported to formulate and publish ad hoc arbitration rules, in accordance with the provisions on arbitration proceedings in the Civil Procedure Law of the People's Republic of China and the Arbitration Law, and with reference to internationally accepted rules, so that the parties may agree to apply such rules.

The parties may also agree to apply internationally accepted arbitration rules or specify particular arbitration procedures, provided such agreements are enforceable.

Article 7 The ad hoc arbitration rules formulated by the Shanghai Arbitration Commission and other relevant industry associations and chambers of commerce generally include the following contents:

1. designation of Shanghai as the seat of arbitration;

2. designation of an arbitration institution legally-registered in this Municipality or a business office legally established by an overseas arbitration institution as the appointing authority;

3. handling of issues related to the determination of the validity of the arbitration agreement and objections to the jurisdiction of the arbitration case;

4. procedures and time limits for the commencement, hearing, and adjudication of arbitration;

5. procedures and time limits for the appointment, recusal and replacement of arbitrators for the formation of the arbitral tribunal (hereinafter referred to as the tribunal formation), and the disclosure of arbitrators' conflicts of interest;

6. measures for preservation and other interim measures;

7. the making, form, validity and correction of the arbitral award;

8. service of documents or communication, language, confidentiality, etc.;

9. the composition, standards, deposit and allocation of arbitration fees; and

10. other relevant provisions.

Article 8 The parties may include a clause in the contract specifying Shanghai as the seat of ad hoc arbitration, or reach a written ad hoc arbitration agreement specifying Shanghai as the seat of arbitration before or after a dispute arises.

The parties may also agree on the arbitration language, applicable law, hearing venue, hearing procedures, etc., in the ad hoc arbitration clause or agreement.

Article 9 Arbitration institutions legally-registered in this Municipality and overseas arbitration business offices are encouraged to formulate guidelines for ad hoc arbitration services, and provide the following ad hoc arbitration services as agreed upon or requested by the parties:

1. assistance in forming the arbitral tribunal;

2. secretarial services for the arbitral tribunal;

3. assistance with interim measures such as preservation;

4. financial management services for the case, including the collection of advance arbitration fees;

5. provision of hearing rooms and hearing facilities, translation services, stenography, communication services and other hearing-related services;

6. archiving of case files; and

7. other temporary arbitration services that may be provided by the arbitration institution if such services are applied for by the parties or deemed necessary by the arbitral tribunal.

Article 10 The parties may directly agree on matters such as the formation of the arbitral tribunal, secretarial services for the tribunal, and hearing-related services. They may also agree to appoint an arbitration institution legally-registered in this Municipality or an overseas arbitration business office as the designated institution to provide ad hoc arbitration services.

If the parties have not agreed or have not made clear provisions regarding the tribunal formation or the designated institution, they may conclude a supplementary agreement. If no supplementary agreement can be reached, or the tribunal formation still cannot be determined according to the arbitration rules applicable to the case, the parties may request the assistance of the Shanghai Arbitration Commission. The Shanghai Arbitration Commission may provide services such as assisting in the tribunal formation in light of the actual circumstances of the case.

Article 11 Arbitrators shall maintain independence and fairness, enhance their ability to detect and prevent fraudulent arbitration, and handle cases fairly and reasonably.

Arbitrators shall promptly disclose to the parties and other arbitrators the information that may affect their impartiality or independence at the time of their appointment and during the arbitration proceedings.

The arbitral tribunal shall, in accordance with the provisions of the arbitration rules applicable to the case and the specific circumstances of the case, adopt appropriate methods and proceedings to render an award in a timely manner, thereby avoiding unnecessary delays and costs.

Article 12 The award in an ad hoc arbitration case generally should indicate the date on which the award is rendered and is signed by the arbitrators. Arbitrators who dissent from the award have the option to sign or not to sign.

Article 13 The parties shall pay arbitration fees. The costs of ad hoc arbitration cases generally include the arbitrators' remuneration, travel expenses and other reasonable expenses incurred by the arbitrators in handling the case, as well as the service fees charged by the designated institution, among others.

The standards for arbitrators' remuneration and expenses shall be negotiated between the parties and the arbitrators. If the arbitration rules applicable to the ad hoc arbitration case already include the standards for arbitrators' remuneration and expenses, or if the designated institution for the case has established fee standards, such standards may be followed.

Article 14 Either the arbitral tribunal may retain the case files for ad hoc arbitration cases itself, or the parties may entrust a designated institution, as agreed upon, to retain the case files.

Article 15 The Shanghai Arbitration Commission is encouraged to conduct the following activities:

1. strengthening research on theories and practices to provide reference and consultation for ad hoc arbitration activities;

2. formulating and promoting ad hoc arbitration rules and model clauses, and publishing lists of recommended arbitrators and related work guidelines;

3. in accordance with the principle of confidentiality in arbitration, collecting and publishing information on the types and quantities of ad hoc arbitration cases, and issuing anonymized ad hoc arbitration case examples with the consent of the parties;

4. providing services such as assisting in the tribunal formation as requested by the parties;

5. conducting training on the professional ethics and business knowledge of arbitrators to enhance their awareness and capabilities to prevent fraudulent arbitration; and

6. carrying out promotional and exchange activities to guide business entities to choose ad hoc arbitration as a means to resolve disputes.

The Shanghai Arbitration Commission is supported to establish and improve relevant work mechanisms for ad hoc arbitration. Arbitrators are encouraged to apply for membership of the Shanghai Arbitration Commission.

Article 16 For judicial cases involving ad hoc arbitration, such as confirming the validity of arbitration agreements, applying for preservation measures, or seeking the revocation or enforcement of arbitral awards, the parties may file their applications with the people's courts in this Municipality that have jurisdiction.

Article 17 Foreign personnel participating in ad hoc arbitration proceedings in this Municipality including arbitrators, parties, agents, and witnesses, as well as foreign individuals attending arbitration-related meetings, visits, or exchange activities, may apply to the designated institution or the Shanghai Arbitration Association for assistance in obtaining port visas in accordance with the law.

The Shanghai Arbitration Commission, arbitration institutions legally-registered in this Municipality, and overseas arbitration business offices, are encouraged to offer consultation services and facilitate the provision of venues, facilities, and other conveniences for ad hoc arbitration activities conducted under these Measures.

Article 18 Shanghai Municipal Bureau of Justice is responsible for promoting and guiding the related work of ad hoc arbitration in this Municipality in accordance with the law.

Article 19 These Measures shall be effective as of June 1, 2025. The Measures of Shanghai Municipality for Promoting Ad hoc Arbitration in Foreign-related Commercial and Maritime Affairs (for Trail Implementation) (SMJB D [2024] No. 1) shall be repealed simultaneously.