Arbitration vs Litigation in China: Which Is Right for Your Dispute?

Last updated: 2026-07-22

Most international sales contracts specify how disputes are settled. When a dispute arises, the choice between Chinese arbitration and Chinese court litigation has real consequences for cost, speed, confidentiality and your ability to enforce the outcome.

A quick comparison

Factor	Arbitration (e.g. CIETAC)	Court litigation
Confidentiality	Institutionally confidential	Generally public
Timeline	Often faster	Can be longer
Enforcement abroad	Generally strong (New York Convention)	Needs recognition; varies
Cost	Upfront fees; can be higher	Court fees; sometimes lower
Appeal	Very limited	Possible through appellate levels
Expertise	Arbitrators chosen for expertise	Judges, generally generalist

When arbitration makes sense

Arbitration is often the better choice when:

• The value of the claim is substantial and you want a specialised decision-maker.
• You want to keep commercial details private.
• The buyer or supplier has assets in multiple countries, and you want an award that is enforceable internationally.
• Your contract already provides for arbitration.

The China International Economic and Trade Arbitration Commission (CIETAC) is the most commonly used institution for foreign-related disputes in China.

When court litigation makes sense

Court litigation can be preferable when:

• You need interim measures, such as asset preservation, quickly.
• The dispute is straightforward and the amount is smaller.
• You are confident the counterparty's assets are in China and the judgment is enforceable.
• You want the possibility of an appeal.

Decision checklist

1. What does your contract say? Follow the agreed clause where valid.
2. Where are the counterparty's assets? Enforceability drives practical value.
3. How urgent is the matter? Asset preservation may be critical.
4. Do you need confidentiality? If so, lean toward arbitration.
5. What is the claim value versus the likely cost?

Need help deciding?

The right forum can make or break a recovery. Speak with me about the specific facts of your dispute.