Hainan’s new arbitration regulations to boost int’l business environment

The island province of Hainan in south China will implement new arbitration regulations on July 1, aiming to enhance the Free Trade Port’s business environment by introducing ad hoc arbitration and broadening the flexibility in selecting arbitrators.

Passed by the Hainan Provincial People’s Congress Standing Committee, the regulations are designed to enhance the legal, international, and convenient business environment of the Hainan Free Trade Port (FTP).

The regulations consist of 27 articles, adhering to fundamental arbitration principles while addressing specific needs within the Hainan FTP. They focus on innovations such as temporary arbitration and the inclusion of arbitrators from outside the official roster, incorporating advanced domestic and international practices.

The regulations pioneer the use of ad hoc arbitration in the Hainan Free Trade Port, specifying that commercial disputes can be arbitrated within the port if they involve enterprises registered in the FTP, foreign enterprises, enterprises from China’s Hong Kong, Macao, and Taiwan.

This innovation expands the tools available for resolving commercial disputes, providing market participants with efficient, convenient, and internationally aligned arbitration services.

The regulations also allow all parties to select arbitrators from outside the official roster who meet the conditions stipulated in the arbitration law, which will increase their liberty in choosing arbitrators. To ensure transparency and mitigate risks, it is required that the basic information of any arbitrator chosen from outside the roster be disclosed and confirmed by the arbitration institution.

The implementation of these regulations represents a major advance in creating a law-based, international, and accessible business environment in the Hainan FTP, promoting innovative development in the area’s foreign-related legal framework.