“Let’s resolve it without going to court.”

Key developments to consider in international commercial disputes.

1. China has updated its Arbitration Law (effective from 1 March 2026)

https://policy.mofcom.gov.cn/claw/clawContent.shtml?id=103718

The revised law expressly allows for online arbitration, provided that the parties do not object. Such proceedings have the same legal effect as in-person hearings.

The reform is also aimed at increasing procedural efficiency — in particular, by shortening the time limits for challenging arbitral awards.

2. Amendments to arbitration legislation have entered into force in Malaysia (since 1 January 2026)

https://admin.aiac.world/uploads/ckupload/ckupload_20250702031906_14.pdf

One of the key changes concerns the law applicable to the arbitration agreement. If the parties have not expressly specified it in the contract, the default rule is the law of the seat of arbitration.

3. Malaysia has introduced a regulatory framework for third-party funding

https://strapi.bheuu.gov.my/uploads/FINAL_Code_of_Practice_for_Third_Party_Funding_2026_bb1350bf78.pdf

Third-party funding is now governed by a dedicated Code of Practice. It establishes minimum capital requirements for funders, sets out rules on managing conflicts of interest, and limits the funder’s influence over dispute strategy and settlement decisions.

4. Germany is preparing a reform of its arbitration framework

https://www.bmjv.de/SharedDocs/Downloads/DE/Gesetzgebung/RefE/RefE_Modernisierung_des_Schiedsverfahrensrechts.pdf?__blob=publicationFile&v=3

On 27 January 2026, a draft law aimed at modernising arbitration legislation was published. Its core focus includes digitalisation of proceedings (including remote hearings), procedural simplification, and strengthening Germany’s position as a venue for international arbitration.

5. International mechanisms for recognition and enforcement of decisions continue to expand

The 2019 Hague Judgments Convention has entered into force for:

Albania (1 March 2026)
https://www.hcch.net/en/news-archive/details/?varevent=1135

Montenegro (1 March 2026)
https://www.hcch.net/en/news-archive/details/?varevent=1137

The 2005 Hague Convention on Choice of Court Agreements has entered into force for Monaco (1 March 2026):
https://www.hcch.net/en/news-archive/details/?varevent=1138

If your contract involves a foreign counterparty, it is worth revisiting the arbitration clause.

Which law governs it?
Where will the dispute be resolved?
And where will the decision be enforced?

In practice, a single clause can determine the entire outcome of a dispute.