SCIA Implements New Arbitration Fee Regulations – Reduced Costs from July 2025

In July 2025, the Shenzhen Court of International Arbitration (“<span class="news-text_medium">SCIA</span>”) brought into effect a new set of arbitration fee regulations, marking a significant shift in the way arbitration costs are calculated and applied. The reforms are designed to create a more transparent and predictable system while making SCIA proceedings more financially accessible for businesses engaged in both domestic and international disputes.

Unified Fee Framework

For the first time, SCIA has introduced a single and harmonised fee structure applicable to both domestic and international cases. This eliminates discrepancies between the two categories and offers a consistent approach for parties regardless of where they are based.

Fee Cap for Large-Scale Disputes

One of the most notable innovations is the introduction of a cap on arbitration fees for disputes valued above RMB 3 billion. By setting a maximum charge, SCIA ensures that parties in large, high-stakes cases are not exposed to unlimited or disproportionate costs, a concern that has often been raised by multinational corporations.

Incentives for Early Settlement

To further encourage efficiency, the new framework provides preferential fee arrangements for cases resolved at early stages. Parties who choose to settle or withdraw claims before full hearings can now benefit from substantial fee reductions, reinforcing arbitration’s role as a flexible and cost-effective alternative to litigation.

Expansion of Hourly Billing

Previously available only in limited situations, hourly billing has now been extended across all types of cases. This expansion provides parties with greater flexibility and aligns SCIA’s practices with those of other leading international arbitral institutions, offering a choice between time-based and value-based fee structures.

Industry-Specific Reductions

Recognising the needs of certain specialised sectors, SCIA has introduced a <span class="news-text_medium">5% fee reduction</span> for disputes relating to:

• securities and futures;
• intellectual property rights; and
• maritime matters.

These targeted reductions reflect SCIA’s ambition to attract more disputes from industries where arbitration is increasingly preferred for its confidentiality and expertise.

Applicability and Transition Rules

The new regulations apply to all cases accepted by SCIA from 1 July 2025 onwards. Cases that were registered on or before 30 June 2025 remain subject to the previous fee regime, ensuring procedural stability for ongoing matters.

Implications

The July 2025 reforms underscore SCIA’s efforts to position itself as a competitive global arbitration hub. By lowering costs, broadening billing options and providing clearer guidance, SCIA strengthens its attractiveness to both Chinese and foreign parties seeking efficient dispute resolution. For businesses, the changes mean greater predictability in budgeting for arbitration and new incentives to resolve matters early.

Key Takeaways for Foreign Parties

• Foreign companies no longer need to navigate separate domestic and international fee systems. A harmonised structure offers predictability and simplifies budgeting.
• The new cap on fees for disputes exceeding RMB 3 billion provides reassurance for multinationals engaging in large-scale claims, making SCIA a more attractive option for high-value cross-border cases.
• The preferential fees for early resolution encourage parties to explore settlement at preliminary stages, which can lead to faster and more cost-efficient dispute outcomes.
• The expansion of hourly billing across all cases aligns SCIA with global arbitral standards, offering flexibility for parties accustomed to international institutions such as the ICC or LCIA.
• Foreign businesses in industries such as securities, futures, intellectual property and maritime trade benefit from reduced fees, potentially lowering costs in sectors where disputes can be frequent and complex.
• The clear cut-off date (1 July 2025) ensures that foreign parties with pre-existing SCIA cases can continue under the old regime without disruption, while new disputes move under the revised framework.