By Yingbo Wang, Senior Partner of Beijing Dacheng Law Offices, LLP
2025 is a crucial year in China’s progress toward the rule of law. To meet the demands of the new development pattern and high-level opening up, China’s legislative authorities have systematically revised several fundamental and international-related laws. In particular, the revisions to the “Foreign Trade Law of PRC,” the “Arbitration Law of PRC,” the “Maritime Law of PRC,” and the “Civil Aviation Law of PRC” have attracted much attention. These revisions not only unified domestic and international norms and strengthened rights protection but also provided a solid institutional foundation for developments in areas such as digital economy and ecological environment protection, thus helping to outline a roadmap for the market-oriented, rule-of-law-based, and internationalized development of China’s business environment.
Below is a brief overview of the key changes made to these four laws:
- “Foreign Trade Law of PRC.” Effective date: March 1, 2026. The purpose of these revisions was to legalize established reform measures in the field of foreign trade and to expand the policy tools available for safeguarding national economic security. Main amendments:
- The provisions regarding “actively aligning with high international standards in economic and trade practices” and “actively participating in the formulation of international economic and trade rules” have been incorporated into the general provisions of the law. At the same time, elevating the “Negative List Management System for Cross-border Service Trade” to the status of a legal framework provides a stable and transparent basis for the open and regulated management of service trade.
- Optimizing the environment for foreign trade development and promoting new business models: The law explicitly states that the state supports the development of new forms and models of foreign trade, encourages the growth of digital trade, and urges professional service institutions to provide high-quality support for foreign trade operators. Additionally, a new “Trade Adjustment Assistance System” has been established to help enterprises cope with the impacts brought about by changes in the international trade environment.
- A dedicated chapter is included in the law to strengthen intellectual property protection, with specific measures aimed at enhancing the compliance levels and risk management capabilities of foreign trade operators. Efforts are also being made to establish and improve information platforms for early warning regarding overseas intellectual property issues and providing assistance in protecting such rights.
- In response to unilateralist and protectionist practices in international trade, the law adds supplementary measures for counteraction, granting the state the authority to impose trade restrictions or other measures on relevant countries, regions, organizations, or individuals when necessary.
- The legislative purpose of protecting national sovereignty, security, and developmental interests is clearly articulated in the law, and a trade policy compliance mechanism has been established requiring government departments to conduct compliance assessments when formulating relevant policies.
- “Arbitration Law of PRC.” Effective date: March 1, 2026. This revision aims to comprehensively enhance the credibility and international competitiveness of Chinese arbitration, thereby supporting high-quality development and an open policy towards the outside world. The goal is to establish China as a more open, efficient, and trustworthy international arbitration hub. Key provisions of the revision include:
- Elevating existing rules to legal status and establishing a “ad hoc arbitration” system: Parties involved in certain types of cross-border disputes (such as maritime disputes or disputes between enterprises within free trade zones) are now allowed to choose, in addition to institutional arbitration, to have an arbitration tribunal composed of qualified arbitrators conduct the arbitration according to agreed rules. This provides a legal basis for the practice of “ad hoc arbitration,” which is commonly used internationally, within China.
- Officially recognizing the legal status of online arbitration: It is clearly stipulated that arbitration proceedings can be conducted online through information networks and that such proceedings have the same legal effect as those conducted offline. This eliminates legal uncertainties associated with online arbitration and establishes a procedural principle that favors online methods while respecting the wishes of the parties involved.
- Aligning with international norms and expanding the scope of cross-border cases: A new “place of arbitration” system is introduced, establishing the place of arbitration as the key criterion for determining the applicable laws for arbitration procedures, the jurisdiction over awards, and the courts with judicial authority over such matters. This alignment with international best practices ensures greater consistency and transparency in arbitral proceedings involving cross-border elements. At the same time, the scope of foreign-related arbitration cases has been expanded from a specific list to “other foreign-related disputes,” allowing for flexibility in the future.
- Optimization of judicial review and support mechanisms: The time limit for parties to apply to revoke domestic arbitration awards has been reduced from six months to three months, in order to encourage right holders to exercise their rights in a timely manner and thus stabilize social relations. At the same time, the courts’ support in terms of property preservation, procedural safeguards, and evidence collection before and during arbitration proceedings has been strengthened.
- Clarification of the nature of arbitration institutions and improvement of internal governance: For the first time at the legal level, it has been explicitly stated that arbitration institutions are “public-interest non-profit legal entities.” These institutions are required to establish sound internal governance structures and supervision mechanisms, in order to resolve long-standing disputes regarding their nature and enhance their credibility.
III. “Maritime Law of PRC”: Effective date: May 1, 2026. This revision represents the first comprehensive update to the Maritime Law since its implementation in 1993. The main directions of these changes include unifying domestic and international maritime rules, promoting digitalization in shipping operations, and strengthening efforts to protect marine ecosystems, with the goal of establishing a unified, green, and intelligent modern maritime legal framework. Key revisions include:
- Unification of domestic and international rules of carriage of goods by sea: The original law contained an exception stating that contracts of carriage of goods by sea between domestic ports were not subject to the Maritime Law; this provision has been eliminated, officially bringing domestic waterway transportation within the scope of this law’s jurisdiction, thus ending the long-standing practice of applying general provisions of the Civil Code to coastal transportation operations. Domestic maritime carriers are entitled to certain exemptions and liability limits, but they are not exempt from liability for navigational errors or fires. Moreover, the obligation to make seaworthiness of the vessel applies not only before and at the beginning of the voyage but throughout the entire voyage. Regarding delayed delivery, in international carriage, a delay is only considered to have occurred if there is an express agreement between the parties regarding the delivery period; however, in domestic carriage, such an agreement is not required. As long as the carrier fails to deliver the goods within a reasonable time frame, it is considered a delay. Under the new regulations, the method for determining the actual value in compensation cases has been changed: instead of using the CIF price, it will now be determined primarily based on the local market price at the time of delivery, and only if this cannot be ascertained will the CIF price be used. Additionally, the liability limits for carriers in both domestic and international maritime passenger transport have been standardized, addressing the issue of inconsistent compensation levels for similar situations in judicial practice.
- Rebalancing the rights and obligations of parties involved in contracts of carriage of goods by sea: The obligations of carriers to “receive” and “deliver” goods have been explicitly designated as core responsibilities. Furthermore, the responsibility for any costs and risks arising from unclaimed goods at the port of discharge has been shifted from the “consignee” to the “shipper”, and shippers have been granted limited right of control over their goods.
- Providing a legal foundation for digitization in shipping: A new section on “electronic transport records” has been added, specifying that these records have equal legal effect as paper documents. Detailed rules regarding their issuance, use, transfer, and conversion with paper documents have also been established, thus removing legal barriers to the digital transformation of the global shipping industry.
- Improve the system for protecting the marine ecological environment: Add the provision of “strengthening the protection of the marine ecological environment” to the legislative objectives, and create a separate chapter dedicated to “liability for damage caused by ship oil spills.” This chapter systematically defines the scope of compensation for pollution damages, as well as the systems for mandatory liability insurance and compensation funds, and explicitly includes damage to the ecological environment itself and the costs required for its restoration within the scope of civil compensation.
- Improve the application of foreign-related laws: Add mandatory provisions stating that international contracts of carriage of goods by sea in which the port of loading or unloading is located within China must be governed by Chapter IV of the Maritime Law, thereby excluding the possibility for parties to choose another legal framework. Additionally, refine the rules governing the application of laws in foreign-related aspects such as rights related to ships under construction and maritime liens. At the same time, make appropriate modifications to the marine insurance system, such as introducing provisions for insurance covering ships under construction, written agreements regarding insured values, and mechanisms for subrogation, etc.
- “Civil Aviation Law of PRC”: Effective Date: July 1, 2026. Key areas of revision include placing greater emphasis on aviation safety, strengthening protection of passengers’ rights and interests, aligning liability systems with international standards, promoting the development of low-altitude airspace economies, and ensuring comprehensive aviation safety measures are in place. Main amendments:
- Giving top priority to aviation safety: The legal framework has been strengthened in key areas such as flight safety, and operational safety. A new chapter dedicated to “Civil Aviation Security” has been added to improve security inspection procedures, and penalties for acts that disrupt transportation safety, such as disruptive behavior on aircraft, have been increased.
- Special provisions to protect passengers’ rights: In response to issues of public concern, such as flight delays and cancellations, the new law includes a dedicated section on “Passenger Rights Protection” within the “Public Air Transport” chapter. This section clarifies the obligations of airlines regarding information disclosure, accommodation arrangements, and ticket modification services, and emphasizes the protection of personal information.
- Alignment of carrier liability standards with international conventions: For a long time, international carriage by air has followed the compensation standards stipulated in international conventions to which China is a party, while domestic carriage by air used much more lower standards. This led to a discrepancy in compensation levels between international and domestic flights. After the amendment, both types of air transport will now adhere to the same international compensation standards.
- Promotion and regulation of general aviation and low-altitude economy development: The law provides clear legal support and opportunities for growth for emerging sectors such as general aviation and low-altitude economy applications, reflecting legislative foresight in addressing the future development trends of these industries.
- Strengthening supervision, management and legal responsibilities: The newly revised laws have further enhanced supervision and management measures and improved provisions regarding legal responsibilities. The aim is to effectively ensure the order of the aviation market and its operational safety by increasing the costs associated with illegal and irregular activities.
Based on the revisions, we would conclude that the comprehensive revision of these four important laws in 2025 not only profoundly impacts the rights and obligations of parties involved in related contractual agreements, providing more detailed rule guidance and more efficient dispute-resolution mechanisms for various commercial activities, but also clearly signals China’s ongoing commitment to advancing high-level opening up to the outside world and actively participating in global governance. As these new laws come into effect in 2026, they will undoubtedly provide stronger institutional support for the high-quality development of China’s economy and the construction of rule-of-law system.