Search

China's Law on Lawyers was promulgated on May 15, 1996, and will be implemented on Jan. 1, 1997. The new law, which enhances lawyers role in the Chinese legal system, brings the country closer to international standards. The Ministry of Justice's Dept. of Lawyers reports that the law does not cover foreign law firms or lawyers and that several implementing regulations will be announced before the law goes into effect.

Arbitration agreements in China can make dispute resolution faster, less expensive, and more confidential, but a sound arbitration agreement under Chinese law is necessary. The PRC Arbitration Law of 1994 declares a valid arbitration agreement independent of any underlying contract, and the Interim Regulations on the Issuance and Trading of Shares govern arbitration of shares-related disputes. A contract clause, independent agreement, or separate correspondence may establish an arbitration agreement.