Shanghai advances arbitration judicial reviews

Shanghai courts handled 2,616 judicial reviews of arbitration cases and 6,933 applications for interim measures in arbitration between 2020 and 2024, with both figures showing a steady upward trend, the Shanghai High People's Court told a news briefing on Tuesday.

Among the judicial review cases, general commercial arbitration accounted for 81.4 percent, with 2,128 cases, followed by financial arbitration, which made up 16 percent.

In 2024, two cases from Shanghai were selected among the Supreme People's Court's top 10 model cases for judicial reviews of arbitration cases. Three cases involving the accurate application of the New York Convention were included in the case law database maintained by the United Nations Commission on International Trade Law.

Cao Jie, vice president of the Shanghai High People's Court, noted that in recent years, Shanghai courts have actively promoted innovation and internationalization in arbitration.

Key measures include centralizing judicial review of ordinary arbitration cases under the Shanghai International Commercial Court to enhance efficiency and expertise, and strengthening judicial cooperation with Hong Kong and Macau.

To align with international practices, the Shanghai High People's Court issued new rules in June last year on the jurisdiction of ad hoc arbitration. Under the rules, financial disputes are handled by the Shanghai Financial Court, while all other ad hoc arbitration cases are reviewed by the Shanghai Maritime Court, to ensure that new types of arbitration-related cases are handled with clear procedures and consistent legal standards.

Jin Xiaofeng, chief judge of the maritime and admiralty division of the Shanghai High People's Court, noted that while institutional arbitration remains the mainstream under Chinese law, ad hoc arbitration is widely used internationally for its flexibility.

In 2016, the Supreme People's Court first proposed recognizing the validity of ad hoc arbitration agreements made between entities in pilot free trade zones under certain conditions. In 2022, pilot programs were established in Beijing, Shanghai, Guangdong and Hainan.

One landmark case, heard by the Shanghai Maritime Court, involved an international trade company and a freight forwarding firm. It was China's first case confirming the validity of an ad hoc arbitration agreement.

Jin said Shanghai courts will continue to refine judicial review rules by drawing on practical experience and cases, further improving the framework for civil arbitration.