TITLE:
A Legal System of “Highly Relying on Niche Users’ Mutual Trust” - On the Legal Coordinates of China’s Ad hoc Arbitration
AUTHORS:
Du Wen
KEYWORDS:
China’s Ad hoc Arbitration, Analyses on Its Legal Positioning, The Quintessence of “Highly Relying on Niche Users’ Mutual Trust”, The Structure of “One Body with Two Wings”
JOURNAL NAME:
Chinese Studies,
Vol.15 No.4,
November
5,
2026
ABSTRACT: The new Arbitration Law of China, which came into effect on March 1, 2026, established localized ad hoc arbitration. Ad hoc arbitration in China is quintessentially a legal system with dual characteristics of “appealing to niche users and demanding their mutual trust”. The meaning of “appealing to niche users” is that compared with Western countries, ad hoc arbitration in China is extremely limited in terms of its applicable parties, subject matter(s), and the geographical scope. Meanwhile, the so-called “demanding users’ mutual trust” refers to the mutual familiarity and faith between the ad hoc arbitrator and the disputing parties. Among these two traits, “appealing to niche users” is the predominant one, while “demanding users’ mutual trust” is the secondary feature. The former has a decisive impact on the latter. Overall, China’s ad hoc arbitration has a hallmark structure of “one body with two wings”. The so-called “one body” refers to the dual characteristics of “highly relying on niche users’ mutual trust” in China’s ad hoc arbitration. The “first wing” in the so-called “two wings” refers to the five peculiarities endowed by China’s unique national conditions, polity and supporting legal culture. The “second wing” refers to the unique functions of ad hoc arbitration in China, which plays a pivotal role in resolving disputes within designated regions such as free trade zones and the free trade port, thereby providing assistance for China’s deepening reform, opening-up and attracting foreign investment. This unique structure and its roles are missing in Western ad hoc arbitration. The application of ad hoc arbitration in China will have the following two effects: firstly, in the foreseeable future, ad hoc arbitration is unlikely to be widely promoted and universally used within China. Secondly, in the near future, ad hoc arbitration will not become a strong competitor to China’s existing arbitration institutions.