Hainan builds international commercial arbitration center through temporary arbitration mechanism

The Hainan Free Trade Port (FTP) in south China's Hainan Province will officially begin island-wide special customs operations on Dec. 18, 2025.

With global shipping resources increasingly concentrating in Hainan and foreign-related commercial disputes on the rise, the province has taken the lead nationwide by introducing a temporary arbitration mechanism under the Hainan FTP law, serving as a preferred venue for resolving international commercial disputes.

On Sept. 29, 2025, the Diversified Dispute Resolution Center for Shipping was inaugurated in the Yangpu Economic Development Zone in Danzhou, Hainan. It is the first platform in the Hainan FTP that integrates mediation, arbitration, litigation, and incident response for shipping-related disputes.

On July 1, 2024, the Several Provisions on the Development of International Commercial Arbitration in the Hainan FTP took effect, offering businesses arbitration services aligned with international standards.

Huang Wenchao, vice chairman of the Hainan Arbitration Association, noted that temporary arbitration grants parties more autonomy than traditional institutional models. Parties can appoint their own arbitrators and tailor the procedures and rules, a level of flexibility that strongly suits the needs of cross-border commercial cases.

Huang noted that Hainan's advantages over other international arbitration venues lie in its strong policy support, strategic location, and tailored services.

Earlier this year, the Hainan FTP resolved and enforced its first foreign-related temporary arbitration case. Zhang Yinyu, secretary-general of the Hainan Arbitration Association, explained that although the contract had designated a well-known overseas arbitration institution, taking the case abroad would have meant higher costs, longer timelines, and a required return to Hainan for recognition and enforcement because property preservation was already handled locally.

After learning about Hainan's temporary arbitration mechanism, the parties opted for a one-stop solution in the Hainan FTP. The case took less than three months to resolve, and the arbitration fees were only around 10,000 yuan (about $1,414.59).

To support the Hainan FTP's development and opening-up, the Hainan International Arbitration Court has been rolling out sector-specific arbitration rules tailored to industries, according to Ni Wei, head of the development department of the Hainan International Arbitration Court.

The court has formed a strong panel of domestic and international arbitrators to safeguard parties' rights. It now includes 1,350 arbitrators from more than 40 countries and regions, with expertise across all major commercial dispute fields.