China and Hong Kong Arbitration for Bangladeshi Parties in 2026: HKIAC, CIETAC, Hainan and Enforcement

China Hong Kong arbitration Bangladesh: the 2026 position for importers and contractors

China Hong Kong arbitration Bangladesh businesses agree to is now the default dispute route for a large share of the country's trade and infrastructure. Chinese suppliers, EPC contractors and state-linked project companies routinely propose HKIAC in Hong Kong, CIETAC in Beijing or Shenzhen, or a mainland seat, and Bangladeshi importers and employers usually accept the clause without testing what it means. In 2026 the stakes are higher: China's revised Arbitration Law took effect on 1 March 2026, HKIAC changed its expedited procedure and fees on 1 January 2026, and Hainan now runs a working ad hoc arbitration regime.[4] [9]

This guide is written for the Bangladeshi side of the table: the HKIAC and CIETAC 2024 Rules, the new Chinese law, Hainan ad hoc arbitration, the Hong Kong–mainland arrangement on interim measures, and enforcement in China and Bangladesh. Supply and EPC clause drafting, and the mechanics of enforcing a foreign award in Dhaka, are covered in companion TRW guides.

Summary: For a Bangladeshi party contracting with a Chinese counterparty, Hong Kong under the HKIAC Rules usually offers the strongest combination of a neutral common-law seat, English-language proceedings and direct access to mainland Chinese courts for asset preservation. CIETAC is a credible alternative if the clause fixes the seat, language and tribunal make-up. Mainland and Hainan seats became more workable after the 2025 Arbitration Law, but awards from all of them are enforced in Bangladesh only through section 45 of the Arbitration Act 2001.

Key point: The decisive question is often not which institution wins the clause negotiation, but where the Chinese counterparty's assets are. Only arbitrations seated in Hong Kong and administered by a qualifying institution, such as HKIAC or the CIETAC Hong Kong Arbitration Center, can use the 2019 arrangement to obtain preservation orders from mainland courts before an award is made.

At a glance

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Table of Contents

Why China Hong Kong arbitration Bangladesh clauses appear in Chinese-facing contracts

Chinese suppliers are among Bangladesh's most important trading counterparties, and Chinese contractors sit behind many of the country's power, transport and industrial projects. The Chinese side usually drafts the dispute clause. The forms we see most are CIETAC with no stated seat, HKIAC seated in Hong Kong, and a provincial mainland commission. Each produces a different procedure, supervising court and route to the counterparty's money. Getting China Hong Kong arbitration Bangladesh clauses right at signing is far cheaper than fighting about them later.

Supply and import contracts

Importers of machinery, raw materials, fabric, chemicals and electronics typically contract on the supplier's sale contract, with payment by letter of credit or advance remittance. The real disputes are about quality, short shipment, late delivery and refunds of advance payments, so a fast, documents-only procedure and the ability to freeze a supplier's receivables in China matter more than an elaborate hearing. Our guide to the supply agreement in Bangladesh covers the commercial terms that sit around the clause.

EPC, G2G and project contracts

EPC contracts with Chinese contractors, including government-to-government projects financed by Chinese lenders, involve long timetables, variations, delay damages and performance security. A Bangladeshi employer, often a state-owned entity, may be the claimant on delay or defects and the respondent on unpaid certificates. Financing documents often carry a different dispute clause. Our analysis of EPC contracts in Bangladesh explains the contract chain and the 2026 review of G2G deals; this guide focuses on the arbitration choices within that chain.

What a weak clause costs

The most expensive drafting mistake in China Hong Kong arbitration Bangladesh contracts is silence: no seat, no language and no tribunal size. Under the CIETAC Rules silence produces a mainland seat, Chinese-language proceedings and a three-member tribunal drawn from CIETAC's panel.[8] Under the HKIAC Rules silence produces a Hong Kong seat and leaves the tribunal size to HKIAC.[3] Each should be chosen, not inherited.

HKIAC arbitration under the 2024 Administered Arbitration Rules

The Hong Kong International Arbitration Centre's current Administered Arbitration Rules took effect on 1 June 2024.[3] HKIAC is one of the busiest institutions in Asia: in 2025 it registered 388 new arbitrations involving parties from 61 jurisdictions, with a total amount in dispute of HK$126.2 billion, and the leading party origins were Hong Kong, mainland China and the British Virgin Islands.[6]

What changed in 2024

The 2024 Rules kept the 2018 framework and added targeted tools. Article 9A requires HKIAC to take diversity into account when it appoints arbitrators. Article 13.6 lets the tribunal decide preliminary issues, bifurcate and run the case in stages, alongside the early determination procedure in Article 43 for points that are manifestly without merit or outside jurisdiction. Article 45A covers information security. Article 44 requires a funded party to disclose the existence of a funding agreement and the funder's identity.[3]

Procedure from notice to award

The claimant starts by serving a Notice of Arbitration. If the parties have not agreed the number of arbitrators within 30 days of the respondent receiving the notice, HKIAC decides whether one or three is appropriate.[3] Absent agreement, the seat is Hong Kong unless the tribunal decides another seat is more appropriate. Once the tribunal declares the proceedings closed, the award should follow within three months, subject to extension by the parties or HKIAC.[3]

Expedited procedure and fees from 1 January 2026

Article 42 allows a party to apply, before the tribunal is constituted, for an expedited procedure where the aggregate amount in dispute does not exceed the threshold set by HKIAC, where the parties agree, or in cases of exceptional urgency.[3] For cases submitted from 1 January 2026 HKIAC raised the threshold from HK$25 million to HK$50 million, raised the arbitrator hourly-rate cap from HK$6,500 to HK$7,500 and raised the registration fee from HK$8,000 to HK$10,000.[4]

Under the expedited procedure the case goes to a sole arbitrator unless the clause provides for three, is normally decided on documents, and the award is due within six months of the file being transmitted.[3] Most China Hong Kong arbitration Bangladesh import disputes fall within the new threshold.

Emergency arbitrator and tribunal interim measures

Article 23 lets the tribunal order interim measures, and Schedule 4 provides for an emergency arbitrator before the tribunal is formed, whose decision is due within 14 days of receiving the file.[3] A supplier with no Hong Kong assets may ignore it, which is why the Hong Kong–mainland arrangement matters more.

CIETAC arbitration under the 2024 Rules

The China International Economic and Trade Arbitration Commission's current rules took effect on 1 January 2024 and apply to cases accepted from that date.[8] CIETAC accepts international and foreign-related disputes, disputes related to Hong Kong, Macao and Taiwan, and domestic disputes.[8] It is the institution Chinese state-linked contractors most often propose. The question for a Bangladeshi party is how to make a CIETAC clause neutral.

Seat and language defaults

Where the parties have not agreed a place of arbitration, Article 7 makes the seat the domicile of CIETAC or of the sub-commission or centre administering the case, unless CIETAC decides otherwise.[8] A clause that says only "CIETAC arbitration" therefore usually means a Beijing seat and supervision by a mainland court. Article 84 makes Chinese the language of arbitration unless the parties agree otherwise, although CIETAC may designate another language having regard to the contract.[8] The fix is simple: name the seat and English as the language.

Tribunal composition

Article 25 makes three arbitrators the default.[8] Under Article 27 each party nominates an arbitrator within 15 days of receiving the Notice of Arbitration, and the parties jointly nominate the presiding arbitrator within the same period, failing which the Chairman of CIETAC appoints; the parties may instead agree that the two co-arbitrators choose the presiding arbitrator.[8] Arbitrators are normally drawn from CIETAC's Panel of Arbitrators, and a nominee from outside the panel needs the Chairman's confirmation. When the Chairman appoints, Article 30 requires attention to the parties' nationalities, the seat, the language and the applicable law.[8] Because the parties' agreement on composition prevails, a clause can require a presiding arbitrator who is not of Chinese or Bangladeshi nationality.

Interim measures, emergency arbitrator and early dismissal

Article 23 obliges CIETAC to forward a request for conservatory measures to the court the party designates, and CIETAC may do so before the Notice of Arbitration is issued. It also provides for an emergency arbitrator under Appendix III and lets the tribunal order interim measures under the applicable law.[8] Article 48 requires a funded party to disclose third-party funding without delay, and Article 50 allows a request for early dismissal of a claim that is manifestly without legal merit or manifestly outside jurisdiction.[8]

Summary procedure and time limits

The Summary Procedure applies where the amount in dispute does not exceed RMB 5 million, unless the parties agree otherwise, and the award is due within three months of the tribunal's formation.[8] In general procedure cases, the tribunal must render the award within six months of its formation, subject to extension.[8]

The CIETAC Hong Kong Arbitration Center

Chapter VI of the CIETAC Rules governs cases administered by the CIETAC Hong Kong Arbitration Center. Unless the parties agree otherwise, the seat is Hong Kong, the procedural law is Hong Kong arbitration law and the award is a Hong Kong award.[8] For a Chinese counterparty that insists on CIETAC, this is often the best compromise available to a Bangladeshi importer or employer: a Chinese institution, a Hong Kong seat and access to the interim measures arrangement.[5]

China's revised Arbitration Law in force from 1 March 2026

The Standing Committee of the National People's Congress adopted the revised Arbitration Law on 12 September 2025, and it took effect on 1 March 2026. It is the first substantive overhaul since the 1995 law, which had been amended only in 2009 and 2017, and it applies to more than 280 arbitral institutions across China.[9] Four changes matter most for a Bangladeshi party.

The seat is now recognised

Article 81 allows the parties to a foreign-related arbitration to agree the seat in writing. The seat determines the procedural law, unless otherwise agreed, and the court with supervisory jurisdiction, and the award is deemed made at the seat.[9] For a Bangladeshi party, the practical point is that a clause naming Hong Kong, Singapore or Dhaka as the seat should now be given effect on its terms.

Court interim measures, including conduct preservation

Articles 39 and 58 extend court-ordered measures to conduct preservation, alongside property and evidence preservation, and allow urgent applications before the arbitration begins. Interim measures in a mainland-seated arbitration are still issued by the courts, not the tribunal.[9]

A shorter window to set aside

Article 72 cuts the time limit for applying to set aside a mainland-seated award from six months to three months from receipt of the award.[9] A losing Bangladeshi party has little time to instruct Chinese counsel.

Foreign institutions and foreign awards

Article 86 allows offshore institutions to set up offices and administer foreign-related cases in pilot free trade zones, the Hainan Free Trade Port and similar areas. Article 88 gives the award creditor of a foreign award a choice of intermediate courts, including the court of the creditor's residence or a court reasonably connected to the dispute where the debtor and its assets are outside the mainland.[9]

Ad hoc arbitration in the Hainan Free Trade Port

Until 2026 mainland China did not generally recognise ad hoc arbitration seated on the mainland. Hainan was the testing ground. The Hainan Free Trade Port Law, in force since June 2021, allows the port to explore international commercial dispute resolution mechanisms, and Hainan built an ad hoc regime on that basis.[10] Article 82 of the revised Arbitration Law now provides a national footing.

Who can use ad hoc arbitration

Article 82 permits ad hoc arbitration for two categories of foreign-related dispute: foreign-related maritime disputes, and foreign-related disputes between enterprises registered in pilot free trade zones, the Hainan Free Trade Port or other designated areas.[9] [10] The Hainan Free Trade Port Ad Hoc Arbitration Rules apply to disputes between enterprises registered in the port, and between those enterprises and enterprises from foreign countries or regions, and to ad hoc arbitration in the port agreed between foreign or regional enterprises.[11]

How the Hainan rules work

The rules were adopted by the Hainan Arbitration Association on 5 June 2024 and took effect on 1 July 2024.[11] The respondent answers within 20 days of the notice. In a three-member tribunal each party nominates one arbitrator and the two choose the presiding arbitrator; if anyone fails to act within 15 days, an appointing authority steps in, and the Association can designate or act as that authority. A party may seek interim measures from the tribunal or directly from the competent people's court. The award is due within four months of the tribunal's constitution, or six months in cases with foreign elements, subject to extension.[11]

Is Hainan right for a Bangladeshi party?

Hainan is still young. The first cross-border maritime ad hoc arbitration in the port was heard at Yangpu on 27 February 2025 between a Singaporean company and a Hainan company, and the local maritime court tribunal preserved a bank deposit the same day.[10] Under the national law the tribunal must file the parties, seat, composition and rules with the China Arbitration Association within three working days of constitution, and commentators have warned that a missed filing could be used to attack the award.[10] For most Bangladeshi parties Hainan is a negotiating option, not a first choice.

Interim measures across the Hong Kong–mainland border

The Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings was concluded on 2 April 2019 and took effect on 1 October 2019. It lets parties to Hong Kong-seated arbitrations administered by qualifying institutions apply to mainland courts for preservation of assets, evidence and conduct.[5] No other seat outside the mainland has this access, which is why it dominates China Hong Kong arbitration Bangladesh planning.

Qualifying institutions

The qualifying institutions are HKIAC, the CIETAC Hong Kong Arbitration Center, the eBRAM International Online Dispute Resolution Centre, the Hong Kong Maritime Arbitration Group, the ICC International Court of Arbitration Asia Office and the South China International Arbitration Center (HK).[5] HKIAC does not support applications in ad hoc arbitrations or in arbitrations not seated in Hong Kong, so the clause must combine a Hong Kong seat with one of these institutions.

How it works in practice

An application may be made before or after the arbitration starts, and may be made without notice to the respondent. If it is made before, the arbitration must begin within 30 days of the measure being taken or the court must discharge it. HKIAC issues the supporting Letter of Acceptance within 24 hours of a complete request.[5] Since October 2019 HKIAC has processed 178 applications, and mainland courts have preserved assets worth RMB 30.8 billion; in 2025 alone there were 34 applications to 13 mainland courts.[6] HKIAC's earlier data showed a median of 17 days from application to a granting decision.[5]

The reverse direction

Parties to mainland-seated arbitrations may seek interim measures from the Hong Kong courts under the Arbitration Ordinance (Cap 609), so a CIETAC Beijing claimant can still target a supplier's Hong Kong accounts.[5]

The Bangladesh gap

The position at home is far weaker. In Accom Travels v Oman Air a Larger Bench of the High Court Division held by majority that section 7A interim measures are not available in support of a foreign-seated arbitration, except at the enforcement stage. On 12 July 2026, in Legend World Tank v Multinational Shipping, a single bench considered itself bound by that decision, dismissed an application in support of a Singapore-seated arbitration and vacated its earlier interim order.[13]

A Bangladeshi party that chooses Hong Kong or a mainland seat should not expect a Dhaka court to restrain a Chinese contractor's guarantee call or asset movements before an award. Our guide to international commercial arbitration in Bangladesh explains the gap and the contractual workarounds.

Choosing a China Hong Kong arbitration Bangladesh strategy: HKIAC, CIETAC or Hainan

The right forum depends on who is likely to claim, where the assets are and the value at stake.

For importers and buyers

A Bangladeshi importer is usually the claimant, seeking a refund of an advance payment or damages for defective goods. It needs speed, documents-only procedure and the ability to freeze the supplier's receivables in China. HKIAC with a Hong Kong seat and an express opt-in to the expedited procedure delivers all three; the CIETAC Hong Kong Arbitration Center is a close second. A CIETAC Beijing clause is workable for smaller claims under the RMB 5 million Summary Procedure, provided English is fixed as the language.[8]

For employers on EPC and G2G projects

A Bangladeshi employer is as likely to be the respondent as the claimant, and the contractor's assets are mostly in the project itself or with its parent in China. A three-member tribunal, a neutral presiding arbitrator, English as the language and a seat outside the mainland are the core protections. Where the lender requires a Chinese institution, the CIETAC Hong Kong Arbitration Center with a Hong Kong seat preserves most of those protections. Disputes about performance guarantees should be anticipated in the security wording itself, as our note on whether a performance guarantee can be stopped explains.

Drafting points that matter

• Name the seat: state the seat expressly rather than relying on institutional defaults.[3] [8]
• Fix the language: English throughout.
• Control the tribunal: one arbitrator below an agreed value and three above, with a presiding arbitrator of a third nationality.
• Align the documents: use the same institution and seat in the supply or EPC contract, the guarantees and any financing documents, so that one tribunal can hear connected disputes.
• Add an urgent-relief carve-out: allow either party to seek interim relief from any competent court, including courts where assets are located.

The table below compares the main options. On a phone, scroll it sideways.

For the general drafting framework, see our guide to the arbitration clause in Bangladesh, and our international arbitration practice for advice on a specific contract.

Enforcing awards in China and Hong Kong

A Bangladeshi award creditor usually needs to collect in mainland China, where the counterparty's assets sit. China acceded to the New York Convention on 22 January 1987, with reservations limiting it to awards made in another contracting state and to commercial relationships, and extended it to Hong Kong on 1 July 1997.[2] Bangladesh is a contracting state, so an award seated in Dhaka, Singapore or London clears the reciprocity reservation.

Foreign awards in the mainland courts

An application is made to an intermediate people's court, traditionally where the debtor resides or has property, and must be brought within the two-year limitation period under the Civil Procedure Law.[12] Article 88 of the revised Arbitration Law adds the creditor's residence or a court reasonably connected to the dispute where the debtor and its assets are outside the mainland, and confirms review under treaties or reciprocity.[9] A refusal is subject to an internal reporting system that requires it to be referred upwards, ultimately to the Supreme People's Court, before it takes effect. In one study of 243 reported cases from 2001 to 2022, 43 were refused, mainly for procedural defects.[12]

Hong Kong awards in the mainland, and mainland awards in Hong Kong

Awards move between Hong Kong and the mainland under a bilateral arrangement, not the New York Convention. A Supplemental Arrangement concluded on 27 November 2020, fully implemented in Hong Kong on 19 May 2021, allowed simultaneous enforcement in both places, capped at the award amount, and removed the list of recognised mainland institutions so that any award made under the mainland Arbitration Law can be enforced in Hong Kong.[7] A Bangladeshi winner of an HKIAC award can therefore pursue assets in Hong Kong and the mainland at the same time.

Enforcing Chinese and Hong Kong awards in Bangladesh

Where the Chinese party wins, or where a Bangladeshi party wins against a Chinese contractor's local branch or assets, enforcement runs through the Arbitration Act 2001. A foreign arbitral award is an award made in the territory of a state other than Bangladesh, excluding any state the Government has declared a "specified state" under section 47.[1] On that definition, awards made in Beijing, Shenzhen, Hainan and Hong Kong are all foreign awards.

Section 45 and section 46

Under section 45 a foreign award is binding and may be relied on by way of defence or set-off, and it is enforced by the District Judge's court in Dhaka as if it were a decree. The application must include the original or an authenticated copy of the award, the original or a certified copy of the arbitration agreement and evidence that the award is foreign, with a certified English translation of any document not in English or Bangla.[1] Section 46 limits refusal to the New York Convention grounds, including incapacity, invalid agreement, lack of proper notice, excess of mandate, irregular composition or procedure, an award not yet binding or set aside at the seat, non-arbitrability and public policy.[1]

Three years, not two

On 26 February 2026, in Jess Smith & Sons Cotton v Patriot Spinning Mills, the High Court Division held that an application to execute a foreign award must be filed within three years under article 182 of the Limitation Act, with no power to condone delay.[14] A Bangladeshi party facing a Chinese award should note that a challenge belongs at the seat, not in Dhaka. A CIETAC award in Chinese also needs a certified English translation under section 45(3). The full procedure is covered in our guide to foreign arbitral award enforcement in Bangladesh.

Step-by-step China Hong Kong arbitration Bangladesh checklist

How we prepare Bangladeshi clients, from clause to collection.

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Treat any friendly-negotiation pre-condition as time-limited and record its start and end, so the arbitration cannot later be called premature.

What to watch in 2026 and beyond

Three developments will shape China Hong Kong arbitration Bangladesh practice over the coming year. First, Chinese courts and institutions are still settling how the revised Arbitration Law works in practice, including the seat rules in Article 81 and the filing requirement for ad hoc cases in Article 82.[9] [10] Second, HKIAC's higher expedited threshold will draw more mid-value trade disputes into fast-track proceedings.[4] Third, the interim relief gap in Bangladesh for foreign-seated arbitration remains open until the Appellate Division or a larger bench revisits Accom Travels, or Parliament amends the Arbitration Act 2001.[13]

The cheapest point to win a Chinese-facing dispute is the day the contract is signed. If you are negotiating a supply, EPC or G2G contract with a Chinese counterparty, or already facing a claim, our international arbitration practice and construction claims and project disputes team can review the clause and the enforcement route, or you can contact TRW directly.

Frequently asked questions

Is HKIAC or CIETAC better for a Bangladeshi company contracting with a Chinese supplier?

For most importers, HKIAC with a Hong Kong seat is the stronger choice because it combines English-language practice with access to mainland preservation orders under the 2019 arrangement. A CIETAC clause can work well if it fixes the seat, English as the language and a neutral presiding arbitrator.[5] [8]

What is the seat if a CIETAC clause does not name one?

Under Article 7 of the CIETAC Rules, the seat is the domicile of CIETAC or the sub-commission or centre administering the case, unless CIETAC determines another location.[8]

Which language applies in a CIETAC arbitration?

The language the parties agree. Without agreement, Article 84 makes Chinese the language, although CIETAC may designate another.[8]

When did China's revised Arbitration Law take effect?

It was adopted on 12 September 2025 and took effect on 1 March 2026.[9]

Can a Bangladeshi company use ad hoc arbitration in Hainan?

Yes, if its counterparty is an enterprise registered in the Hainan Free Trade Port, or if foreign enterprises agree to ad hoc arbitration in the port. The Hainan Free Trade Port Ad Hoc Arbitration Rules have applied since 1 July 2024.[11]

Can I freeze a Chinese supplier's assets before an award?

Yes. In a Hong Kong-seated arbitration administered by a qualifying institution, a party can seek mainland preservation under the 2019 arrangement, even before the arbitration starts. In a mainland-seated case, urgent applications can go directly to the court.[5] [9]

What is the HKIAC expedited procedure threshold in 2026?

For cases submitted from 1 January 2026, HK$50 million, up from HK$25 million.[3] [4]

Is a Hong Kong award enforceable in Bangladesh?

Yes. An award made outside Bangladesh is a foreign award under section 2(k) of the Arbitration Act 2001 and is enforced by the District Judge's court in Dhaka under section 45, subject to the refusal grounds in section 46. China extended the New York Convention to Hong Kong in 1997.[1] [2]

How long do I have to enforce a foreign award in Bangladesh and in China?

In Bangladesh, three years from the award, with no power to extend, following Jess Smith v Patriot Spinning. In mainland China, the Civil Procedure Law sets a two-year limitation period.[12] [14]

Can a Bangladeshi court grant an injunction in support of an HKIAC or CIETAC arbitration?

Generally not before an award. Under Accom Travels, applied again by the High Court Division on 12 July 2026, section 7A relief is unavailable for foreign-seated arbitrations except at the enforcement stage.[13]