Arbitrating Chinese Domestic Disputes

Despite some remaining flaws, arbitration is still the preferred method of dispute resolution for investors in China. This is not only due to the generally applicable advantages of arbitration over litigation but is also linked to the particularities of the Chinese legal system. However, these particularities should be carefully taken into account when drafting the arbitration clause in a contract involving a Chinese party, otherwise the arbitral process could lead to an unenforceable and useless award.