On December 28, 2025, the Supreme People’s Court of China released the Annual Report on Judicial Review of Commercial Arbitration (2024), summarizing judicial review practices in arbitration in a timely manner to unify adjudication standards. In 2024, courts across China concluded 18,566 judicial review cases related to commercial arbitration. Among these, 104 were applications for the recognition (or affirmation) and enforcement of foreign-related arbitral awards, including 62 cases from the Hong Kong, Macao, and Taiwan regions, and 42 foreign arbitral cases. The concluded applications for recognition and enforcement of foreign arbitral cases involved those made outside the territory of China by arbitral institutions from 15 countries as well as ad hoc arbitration tribunals.
Arbitration is an internationally recognized method for resolving commercial disputes. It plays a crucial role in efficiently resolving conflicts, promoting international economic and trade cooperation, and helping to foster a market-oriented, rule-of-law-based, and internationalized business environment. The report summarizes the review approaches for “applications for recognition and enforcement of foreign arbitral awards” in 2024 as follows:
- Formal Review of Application Materials: When a party applies for the recognition and enforcement of a foreign arbitral award, if the country where the award was made has not acceded to the Apostille Convention Abolishing the Requirement of Legalization for Foreign Public Documents, the arbitral award, subject qualification documents, and power of attorney formed outside China must be notarized by a notary public in that country and authenticated by the Chinese embassy or consulate there. Otherwise, the application for recognition and enforcement shall be dismissed.
- Time Limit for Applying for Recognition and Enforcement of Foreign Arbitral Awards: The time limit for applying for the recognition and enforcement of foreign arbitral awards is subject to the provisions on the limitation of actions. Suspension and interruption of this period are also governed by the rules concerning the suspension and interruption of the limitation of actions.
- Determination of Proper Notice: The review of the legality of service of process in foreign arbitration shall be conducted in accordance with the arbitration rules agreed upon by the parties. If the arbitral tribunal’s service procedure complies with the stipulated arbitration rules, it can be concluded that the arbitration procedure has met the standard of “proper notice.” If a party claims that the service procedure was unlawful on the grounds of not having received notice, the people’s court will not support such a claim. Service by the arbitral tribunal to the address specified by the parties in their contract, in compliance with the arbitration rules, shall not be deemed unlawful service procedure, even if the party, having received the arbitration notice, does not participate in the hearing.
- Determination of the Legitimacy of the Arbitral Tribunal’s Composition: When a people’s court reviews whether the composition of the arbitral tribunal falls under the circumstances specified in Article V(1)(d) of the New York Convention, if the parties have specific agreements regarding the tribunal’s composition, the review shall be conducted according to such agreements. In the absence of such agreements, the review shall be based on the applicable arbitration rules or the law of the seat of arbitration.
- Determination of the Nationality of Awards Made by Foreign Arbitration Institutions within Chinese Mainland: Arbitral awards made by foreign arbitration institutions within the territory of China are considered foreign-related arbitral awards, not foreign arbitral awards.
With the deepening integration of the global economy and the continued opening of the Chinese market, two-way cross-border investment and trade activities are becoming increasingly frequent. While Chinese enterprises are actively expanding into overseas markets, international companies and capital are also deeply involved in China’s development. Against this backdrop, cross-border commercial disputes have correspondingly increased, highlighting the growing importance of arbitration as an internationally accepted method for dispute resolution. ICL Consulting possesses extensive experience in providing advice and support related to foreign-related and foreign arbitration, offering clients comprehensive professional services. From designing arbitration clauses and guiding procedural compliance to developing enforcement strategies for awards, we assist clients in safeguarding their rights and interests within the complex landscape of international arbitration.
If you encounter disputes in your cross-border commercial activities or have any questions regarding the recognition and enforcement of related arbitral awards, please feel free to contact ICL Consulting for professional advice and support. Let us work together to navigate cross-border legal challenges and safeguard the development of your international business.
