Differences in enforcement and arbitral rules could cause difficulties for unwary parties engaged in or considering arbitration in mainland China.

China’s economic growth has attracted significant foreign investment in recent years. However, as commercial ties between mainland China and the rest of the world broaden and deepen, the number of China-related commercial disputes has also increased. Arbitration is widely recognized as an effective and efficient method of dispute resolution, providing a neutral decision maker as well as the ability to enforce against the assets of the counterparties. Unlike court proceedings, arbitrations are generally confidential, which can help protect reputation, proprietary information, and client identities. Arbitrators are often specialists chosen by the parties on the basis of their industry experience, and so are often better suited than judges to resolving disputes involving complex business transactions or sophisticated investment products and structures. Aside from these general considerations, parties should understand specific characteristics particular to arbitration in mainland China and within the wider region. The six considerations described below can help parties to enhance their chances of award enforcement, or may create difficulties in their commercial dispute resolution.