China is a member of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (commonly known as the New York Convention), therefore it is possible to choose arbitration in countries other than China.

The key challenge is the reluctance of Chinese parties to agree to it, instead arguing for the governing law or dispute resolution to be within mainland China. This is because many Chinese domestic companies are not very acquainted with foreign laws and dispute resolution mechanisms. Still, it is not uncommon in business with Chinese parties to choose foreign arbitration, particularly if the Chinese party has extensive global operations.

A viable compromise is to choose arbitration in Hong Kong SAR, which benefits from a unique agreement with China’s Supreme People’s Court enabling mutual enforcement of interim measures. Hong Kong is a renowned global dispute resolution hub, offering experienced arbitrators, a strong presence of foreign judges, and the use of English as an official business language. Moreover, Chinese parties are generally more open to accepting Hong Kong as a neutral arbitration forum.