Direct answer

A dispute clause should choose a workable route, not merely say that disputes will be resolved “by arbitration or litigation.” Decide between court proceedings and arbitration; id…

Check mandatory jurisdiction, interim-relief needs and where assets are located before signing.

The classification screen

5 questions before you choose the route.

This page identifies the right question and evidence. It does not determine the legal outcome on a reader’s facts.

01

Check court litigation or arbitration

Identify the relevant facts, documents and operating role before choosing the route.

Decision factor
02

Check a definite competent court or arbitral institution

Identify the relevant facts, documents and operating role before choosing the route.

Decision factor
03

Check governing law and any mandatory PRC rules

Identify the relevant facts, documents and operating role before choosing the route.

Decision factor
04

Check arbitration seat, rules and language if used

Identify the relevant facts, documents and operating role before choosing the route.

Decision factor
05

Check interim measures, service, evidence and enforcement location

Identify the relevant facts, documents and operating role before choosing the route.

Decision factor

Working rule: Map the regulated role before marketing or launch in China.

What changes the answer

The signal ledger.

These facts move the question beyond a label and into a product, money-flow and control analysis.

Signal
Ask the operating question
Why it changes the route
Court litigation or arbitration
How does the matter involve court litigation or arbitration?
This operating fact can change the applicable legal route, evidence and next step.
A definite competent court or arbitral institution
How does the matter involve a definite competent court or arbitral institution?
This operating fact can change the applicable legal route, evidence and next step.
Governing law and any mandatory PRC rules
How does the matter involve governing law and any mandatory PRC rules?
This operating fact can change the applicable legal route, evidence and next step.
Arbitration seat, rules and language if used
How does the matter involve arbitration seat, rules and language if used?
This operating fact can change the applicable legal route, evidence and next step.
Interim measures, service, evidence and enforcement location
How does the matter involve interim measures, service, evidence and enforcement location?
This operating fact can change the applicable legal route, evidence and next step.
Prepare before you escalate

Bring a compact evidence docket—not a pitch deck.

Give a compliance team or counsel the operating facts that reveal the perimeter.

01Names and domiciles of every contracting partyInclude this in the compact fact file for review.
02Place of performance and location of key evidenceInclude this in the compact fact file for review.
03Asset and enforcement mapInclude this in the compact fact file for review.
04Proposed governing-law and forum wordingInclude this in the compact fact file for review.
05Need for confidentiality, interim relief or specialist decision-makersInclude this in the compact fact file for review.

Primary authorities

Reviewed sources support orientation, not a fact-specific assessment.

NPC — PRC Arbitration Law (2025 revision, effective 2026)www.npc.gov.cn
NPC — 2023 Decision Amending the PRC Civil Procedure Lawwww.npc.gov.cn
NPC — PRC Law on Choice of Law for Foreign-Related Civil Relationshipswww.npc.gov.cn