A Study on Establishing Joint Arbitration Institutions at China’s Hainan Free Trade Port

The Supreme People’s Court of China supports the establishment of an international commercial dispute resolution center involving foreign arbitral institutions at Hainan Free Trade Port, but the setting up of such institutions is challenging. Cooperation between China and other countries can help address challenges in the establishment of joint arbitration institutions in Hainan. Compared with the setting up of arbitration institutions by a single foreign party, joint arbitration institutions can share costs and risks, make more neutral arbitration judgments, leverage on the strengths of both parties, as well as facilitate the cultivation of arbitrators. A joint arbitration institution can be defined as a legal entity, with checks and balances on corporate governance. Hainan can make use of its free trade port policy and legislative powers to implement “lenient admission, strict regulations and proper support” for foreign arbitral institutions to establish joint arbitration institutions, suspend outdated provisions of the Arbitration Law, and draft supplementary legislation.