Over the past ten years, trade with and investment in the PRC has increased dramatically. So too have the number of disputes involving foreign companies. For the most part, these disputes are being settled through arbitration, rather than by appeal to the courts.

Moreover, as most Chinese contracts have stipulated that arbitration be held in the PRC, most disputes are being settled under Chinese arbitration rules. However, if planned for properly, the entire proceeding can be settled in English and in accordance with neutral international standards.

Significant changes to arbitration practice occurred in the PRC following the implementation of the PRC Arbitration Law in 1995. Chinese arbitration is supervised by two official bodies.

China International Economic Trade Arbitration Commission, CIETAC, is the statutory body dealing with international economic and trade related arbitration. The latest institutional arbitration rules were issued in 1998.

China Maritime Arbitration Commission, CMAC, is the statutory body dealing with maritime related arbitration, mostly shipping claims.