Equal Legal Status as a Condition for Arbitration
Equal Legal Status as a Condition for Arbitration
In addition to the limitations on the types of disputes, i.e., disputes arising out of or relating to contracts or over property rights or interests, equal legal status is also a condition for arbitration. In accordance with The Arbitration Law of the People’s Republic of China (hereinafter, the “Arbitration Law”), both the claimant and the respondent in an arbitration case must have equal legal status, i.e., each should be an individual, legal entity, unincorporated entity, or any other organization of equal legal status.
Among them, an individual should be a person with full capacity for civil acts defined in the Civil Code of the People’s Republic of China (hereinafter, the “Civil Code”). And the civil acts of a person without or with limited capacity for civil acts shall be represented or ratified by their by their legal representatives in accordance with the Civil Code.
A legal entity may be a for-profit legal entity, such as a limited liability company, joint-stock company, or any other company as a legal entity); a nonprofit legal entity, such as a public institution, social organization, foundation, or social service entity as a legal entity; a special entity, such as a/an government authority, rural collective economic organization, urban or rural cooperative economic organization, or residents’ autonomic organization as a legal entity.
An unincorporated entity refers to a sole proprietorship, partnership, or professional service entity without the status as a legal entity, etc.
Robert Zhang 
Steve Li 