Ad hoc arbitration in China: Development, legal issues, and future perspectives

Ad hoc arbitration, due to its flexibility and efficiency, is resolving international commercial disputes. However, gaps remain in Chinese arbitration legislation regarding ad hoc arbitration. In recent years, China has made attempts to develop ad hoc arbitration in specific regions, such as pilot free trade zones, gaining relevant experience. Although the Arbitration Law of the People’s Republic of China (Revised Draft, 2024) includes provisions on ad hoc arbitration, it still faces challenges, such as ambiguous criteria for validating arbitration agreements and deficiencies in the selection and appointement methods of arbitrators. The study aims to explore the formation and development of ad hoc arbitration in China to identify existing issues in the law’s practical application. Particular emphasis is placed on both theoretical and practical aspects, including the prerequisites, evolution, legal challenges, and prospects for ad hoc arbitration’s development in China. The analysis focuses on how the concept of ad hoc arbitration evolves across different Chinese regulatory instruments. Methodologically, the research combines general and specialized scientific methods, including dialectical, historical, and comparative approaches. The study concludes with proposals to revise the Arbitration Law of the People’s Republic of China by adjusting elements of ad hoc arbitration agreements, introducing an arbitrator information disclosure mechanism, reducing the dependence between arbitrators and arbitral institutions, and incorporating international best practicies-such as provisions from the UNCITRAL Model Law on International Commercial Arbitration. These reforms aim to accelerate the institutionalization of ad hoc in Chinese legislation, enhance the international influence of Chinese arbitral institutions, and provide a more efficient and accessible method for resolving commercial disputes.