A view of the Huangpu River in Shanghai. [Photo/VCG]

Shanghai has announced new regulations allowing foreign arbitration institutions to establish business offices in the city starting Aug 1. The initiative, spearheaded by the Shanghai Municipal Bureau of Justice, aims to enhance the city's appeal as a global arbitration center.

The recently issued Administrative Measures for the Establishment of Business Offices by Foreign Arbitration Institutions in Shanghai outlines the conditions and procedures for foreign arbitration entities that are seeking to set up operations in the city.

Under the regulations, non-profit arbitration institutions legally established in foreign countries and designated domestic regions, including Hong Kong, Macau and Taiwan, or international organizations that China is a member of, are eligible to apply for registration to conduct arbitration activities related to foreign disputes in Shanghai. The Shanghai Municipal Bureau of Justice will oversee the registration process and supervise the activities of these institutions to safeguard national sovereignty, security, and public interests.

Foreign arbitration institutions that wish to register must meet stringent criteria, such as being operational for over five years, demonstrating substantial arbitration activities with international recognition, and appointing a qualified business office head with a clean record. Applicants are required to submit a set of documents, including approval documents, organizational charters, arbitration rules, and personnel details.

Successful registrations will be officially recognized by the Ministry of Justice, ensuring compliance with legal standards and facilitating business operations.

Furthermore, the regulations advocate for collaboration between foreign and local arbitration institutions, fostering mutual growth through cooperation agreements, arbitrator recommendations, and joint training initiatives.

Source: Shanghai Municipal Bureau of Justice