Ad Hoc Arbitration in China’s Pilot Free Trade Zones: Institutional Pathways for Cross-Border Corporate Financial Disputes

Shuyuan Zai

doi:10.54691/6hjmyt34

Authors

Shuyuan Zai Zhongcheng Qingtai Law Firm, Jinan, Shandong, China

DOI:

https://doi.org/10.54691/6hjmyt34

Keywords:

Ad hoc arbitration, pilot free trade zones, cross-border corporate financial disputes, institutional construction, Arbitration Law.

Abstract

China’s Pilot Free Trade Zones (PFTZs) have served as critical testing grounds for institutional innovation, including the pilot implementation of ad hoc arbitration-a globally prevalent dispute resolution mechanism long absent from China’s formal legal framework. The revised Arbitration Law of the People’s Republic of China (effective March 1, 2026) formally recognizes ad hoc arbitration for foreign-related disputes among enterprises registered in PFTZs and Hainan Free Trade Port, marking a pivotal step toward aligning China’s arbitration regime with international norms. This paper examines the institutional foundations, practical operations, and adaptation pathways of ad hoc arbitration in China’s PFTZs, focusing on its suitability for cross-border corporate financial disputes. Through comparative analysis of institutional frameworks, empirical data on arbitration cases, and case studies of pilot practices, it identifies core challenges-including legal ambiguity, procedural uncertainty, and enforcement risks-and proposes a structured institutional construction path. The findings argue that ad hoc arbitration, when tailored to China’s legal and financial context, can enhance the efficiency, flexibility, and international competitiveness of cross-border financial dispute resolution, supporting high-level opening-up and the development of China’s international financial arbitration system.

Downloads

Download data is not yet available.

References

[1] Wang, C., & Lin, Z. (2025). From prohibition to limited opening: Ad hoc arbitration reform under China's arbitration law and its enforcement dilemmas. Journal of International & Comparative Law, 12, 299.

[2] Tang, Z. (2022, January). A study of China’s arbitration system based on a review of international FTA arbitration mechanisms. In 2021 International Conference on Social Development and Media Communication (SDMC 2021) (pp. 610–614). Atlantis Press.

[3] Qian, H. A. O. (2025). Selective convergence: FTZ glass ceiling for ad hoc arbitration in China? Journal of International Trade & Arbitration Law/Uluslararasi Ticaret ve Tahkim Hukuku Dergisi, 14(1).

[4] Li, A. X. (2020). Challenges and opportunities of Chinese international arbitral institutions and courts in a new era of cross-border dispute resolution. Boston University International Law Journal, 38, 352.

[5] Luo, S. (2022). A study on establishing joint arbitration institutions at China's Hainan Free Trade Port. US-China Law Review, 19, 368.

[6] Ying, L., & Weijia, Z. (2020). Establishment of ad hoc arbitration mechanism in China. Journal of WTO & China, 10, 68.

[7] Ma, M., Yu, Z., Ma, L., & Guo, W. (2025). Institutional openness and city cross-border e-commerce: Evidence from China's pilot free trade zones. Economic Analysis and Policy, 85, 558–570.

[8] Gui, F., & Yanting, W. (2023, September 21). Building a global international arbitration center of China: Independence, internationalism and immunity.

[9] Yuan, B. (2017). Foreign-related commercial dispute resolution in China: A focus on litigation and arbitration.

[10] Zhao, Y., & Chen, H. (2022). Legal convergence in the Greater Bay Area through liberalisation of the legal services market and cooperation in dispute resolution services. Hong Kong Law Journal, 52, 555.

[11] Bao, C., & Moser, M. (2021). Managing ‘Belt and Road’ business disputes.