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Arbitration is a legal term that refers to an agreement by both parties to submit a dispute to a third party (with a recognized status), who will evaluate the merits of the dispute and make a ruling. Methods of resolving disputes. Arbitration is different from litigation and trial. Arbitration requires the voluntariness of both parties. It is also different from compulsory mediation. It is a special kind of mediation and a voluntary arbitration, which is different from compulsory arbitration such as litigation.

Arbitration is generally a system in which the parties voluntarily submit their disputes to an arbitral tribunal composed of arbitrators from non-judicial institutions for arbitration based on an arbitration agreement entered into between them, and are bound by the arbitration. Arbitration activities, like court trials, are related to the substantive rights and interests of the parties and are one of the ways to resolve civil disputes. Arbitration is an imported word, derived from Japanese vocabulary. The popular understanding of arbitration is to let everyone comment.

The scope of application of arbitration refers to which disputes can be resolved by arbitration and which disputes cannot be resolved by arbitration. This is what we usually call the "arbitrability of disputes."

Article 2 of the "Arbitration Law" [1] stipulates: "Contract disputes and other property rights disputes between citizens, legal persons and other organizations who are equal subjects may be arbitrated."

Three principles are clarified here: First, the parties involved in the dispute must be civil subjects, including domestic and foreign legal persons, natural persons and other legal organizations with independent subject qualifications; second, the disputed matters in arbitration should be The parties have the right to dispose; third, the scope of arbitration must be contract disputes and other property rights disputes.

Contract disputes are disputes arising from the conclusion or performance of various economic contracts between the two parties in economic activities, including various domestic disputes between natural persons, legal persons, and other organizations that are equal subjects at home and abroad. Economic contract disputes, intellectual property disputes, real estate contract disputes, futures and securities trading disputes, insurance contract disputes, loan contract disputes, bill disputes, mortgage contract disputes, transportation contract disputes and maritime disputes, etc., including foreign-related, Hong Kong, Economic disputes between Macau and Taiwan, as well as disputes involving international trade, international agency, international investment, international technical cooperation, etc.

Other property rights disputes mainly refer to disputes caused by infringements, which are often seen in infringements in the fields of product quality liability and intellectual property rights.

According to the provisions of the Arbitration Law, there are two types of disputes that cannot be arbitrated:

1. Marriage, adoption, guardianship, support, and inheritance disputes cannot be arbitrated. Although these types of disputes are civil disputes, They also involve property rights disputes to varying degrees, but such disputes often involve identity relationships that the parties themselves cannot freely dispose of. They require a court to make a judgment or a government agency to make a decision, and are not within the jurisdiction of arbitration institutions.

2. Administrative disputes cannot be adjudicated. Administrative disputes, also known as administrative disputes, refer to disputes arising from administrative management between state administrative agencies, or between state administrative agencies and enterprises, institutions, social groups and citizens. Foreign laws stipulate that such disputes should be resolved through administrative review or administrative litigation in accordance with the law.

The "Arbitration Law" also stipulates that the arbitration of labor disputes and agricultural contract disputes within agricultural collective economic organizations shall be separately stipulated by the state, which means that the arbitration law does not apply to the resolution of such disputes. This is because although labor disputes and agricultural contract disputes within agricultural collective economic organizations can be arbitrated, they are different from general civil economic disputes, so they can only be adjusted by separate provisions.