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Insights / Market desks
Market focus · 4 min

Resolving commercial disputes between Chinese and Russian companies: arbitration, jurisdiction and enforcement

A China–Russia dispute turns on a choice made before it arises — which forum and law give you an award you can actually enforce. Whether your contract locked that in, and which forum fits your deal, are the practical questions.

TW
TaxWell & Partners
Tax & legal advisers · reviewed for 2026 rules
4 min read
Decide before the dispute

The forum and governing law — CIETAC, ICAC, HKIAC — chosen for enforceability, ideally locked into the contract before anything goes wrong.

Enforce after

An award is only worth having if it's enforceable where the assets are — the New York Convention position matters as much as the forum.

forum
chosen for enforceability
clause
set it before the dispute
enforce
the real test

Commercial disputes between Chinese and Russian companies have increased in volume alongside the growth in bilateral trade since 2022. Understanding the dispute resolution landscape — which forum is most effective, what law governs the contract, and how awards are enforced in each jurisdiction — is essential for both contract drafting and dispute management.

01

Dispute resolution options

02

Russian state courts (Arbitrazh courts)

The Russian commercial court system (arbitrazh courts) has jurisdiction over disputes involving Russian legal entities. Russian arbitrazh courts are reasonably independent and technically competent on commercial matters. However, for Chinese companies: proceedings are in Russian only, Russian procedural law applies, and enforcing a Russian court judgment in China requires a bilateral recognition process under the China-Russia Treaty on Legal Assistance in Civil and Criminal Matters (1992).

03

Chinese state courts

People's Courts in China can exercise jurisdiction where the defendant is a Chinese company or where the contract specifies Chinese court jurisdiction. Proceedings are in Chinese; Chinese civil procedure law applies. Enforcing a Chinese court judgment in Russia requires the same 1992 bilateral treaty — which has been applied but enforcement is not guaranteed for all categories of award.

Facing or fearing a cross-border dispute?

Pick your situation — we'll tell you where you stand:

We have a dispute with a Russian counterparty →We're unsure which arbitration forum to use →We want our contract clause checked first →
04

International arbitration

International arbitration is generally preferred for high-value China-Russia disputes because: proceedings can be in English or Chinese; the parties choose the applicable law; awards are enforceable in both Russia and China under the New York Convention (both countries are signatories); and the neutral forum reduces home-court advantage concerns.

05

Arbitration institutions for China-Russia disputes

06

CIETAC: China International Economic and Trade Arbitration Commission

CIETAC is the world's busiest international arbitration institution by caseload. For disputes with Chinese parties, CIETAC has practical advantages: Chinese arbitrators are readily available, proceedings can be in Chinese, and Chinese party compliance with CIETAC awards is high (as a quasi-governmental institution). CIETAC Hong Kong provides the same institution with a neutral seat.

07

ICAC (МКАС при ТПП РФ): International Commercial Arbitration Court at the Russian Chamber of Commerce

Russia's principal international arbitration institution. ICAC has a long history of Russia-China disputes and maintains a panel of Chinese and Russian arbitrators with bilingual capability. Proceedings can be in Russian, English or Chinese. For disputes where the Russian party is the respondent, ICAC provides high compliance with awards.

08

HKIAC: most neutral option

Hong Kong International Arbitration Centre is frequently chosen as a neutral forum for China-Russia disputes where neither party wants to arbitrate in the other's jurisdiction. HK's common law system, Chinese language availability, and recognition as a neutral international financial centre make HKIAC attractive. Since HK remains under "one country, two systems" until at least 2047, it maintains its status as a genuinely neutral international arbitration seat despite mainland China integration.

09

Applicable law: what governs the contract

For China-Russia commercial contracts, the parties can choose:

Russian law — familiar to Russian party; comprehensive commercial code; less familiar to Chinese party

Chinese law — familiar to Chinese party; Contract Law (2021 Civil Code Book III); less familiar to Russian party

English law — neutral; well-developed commercial law; accepted in international arbitration; neither party's domestic law

CISG (UN Convention on Contracts for the International Sale of Goods) — automatically applies to goods contracts between Chinese and Russian companies unless excluded; both countries are signatories

For most China-Russia supply contracts, CISG governs automatically unless explicitly excluded. For JV agreements, services contracts and financing arrangements, explicit law choice is essential.

10

Enforcement of arbitral awards

11

Enforcing CIETAC/HKIAC award in Russia

Under the New York Convention (Russia acceded 1960), a Russian arbitrazh court must recognise and enforce a foreign arbitral award subject to limited grounds for refusal (incapacity, no notice, non-arbitrable subject matter, public policy). Russia's track record on NYC enforcement is reasonable for commercial awards — the main risk is public policy refusal, which Russian courts apply more broadly than the convention strictly requires.

12

Enforcing ICAC award in China

China enforces foreign arbitral awards under the New York Convention. People's Courts at provincial level handle enforcement applications. China's enforcement of foreign arbitral awards is generally reliable for commercial awards — the main practical challenge is locating and attaching assets of the Chinese party.

13

Contract drafting essentials for China-Russia agreements

Bilingual contract — both Chinese and Russian versions with explicit statement of which governs in case of conflict

Explicit arbitration clause — specifying institution, seat, language, number of arbitrators and applicable law

Currency clause — specifying payment currency (CNY, USD or RUB) and exchange rate mechanism for multi-currency situations

Force majeure — explicitly addressing sanctions, government actions and currency restrictions which are relevant risks in China-Russia contracts

Frequently asked questions
Which arbitration forum should we use for a China–Russia deal?

It depends on your contract and where enforcement would happen — CIETAC, ICAC, HKIAC and others have different profiles. Choosing for enforceability, not familiarity, is what makes an award worth pursuing, and it's best locked into the contract before a dispute.

We have a dispute with a Russian counterparty — what now?

The starting point is what your contract says about forum and governing law, and whether an outcome there is enforceable where the assets sit. That shapes the strategy — so reviewing the clause and the enforcement position is the first move.

Can you check our contract clause first?

Yes — and before a dispute is the cheapest time. A dispute-resolution clause that points to an unenforceable forum, or is ambiguous, is a problem you want fixed in the contract, not discovered when you need to rely on it.

Related service: Company registration →
+ how we can help

This maps the forums — CIETAC, ICAC, HKIAC — for a China-Russia dispute. Your question is sharper: for your contract, which forum and law actually give you an award you can enforce, and did your contract lock that in before the dispute arose?

Dispute-forum strategy — The right forum and governing law for your China-Russia contract — chosen for enforceability, not familiarity.
Enforcement assessment — Whether an award will actually be enforced under the New York Convention where the assets are.
Contract clause review — Your dispute-resolution clause checked before a dispute tests it — the cheapest time to fix it.

A dispute brewing, or a contract being signed? The forum choice decides whether you can enforce — worth getting right early.

Ask about a China-Russia dispute →Book a 30-min call
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