Order of the President of the People's Republic of China

城堡，No. 14

The Law of the People’s Republic of China on Mediation and Arbitration of Disputes over Rural Land Contract and Management, adopted at the 9th Meeting of the Standing Committee of the Eleventh National People's Congress on June 27, 2009, is hereby promulgated and shall go into effect as of January 1, 2010.

Hu Jintao

President of the People's Republic of China

June 27, 2009

Law of the People's Republic of China on Mediation and Arbitration of Disputes over Rural Land Contract and Management

(Adopted at the 9th Meeting of the Standing Committee of the Eleventh National People's Congress on June 27, 2009)

Contents

Chapter I General Provisions

Chapter II Mediation

Chapter III Arbitration

Section 1 Arbitration Committee and Arbitrators

Section 2 Application and Acceptance

Section 3 Composition of an Arbitral Tribunal

Section 4 Hearings and Arbitration Awards

Chapter IV Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is enacted for the purpose of settling disputes over rural land contract and management in a fair and timely manner, protecting the legitimate rights and interests of the parties concerned, and facilitating rural economic development and social stability.

Article 2 This Law shall be applicable to mediation and arbitration of rural land contract and management disputes.

Rural land contract and management disputes shall include:

(1) Disputes arising from the conclusion, performance, alteration, rescission and termination of rural land contracts;

(2) Disputes arising from the sub-contracting, lease, mutual exchange, and transfer of rural land contract and management rights, from acting as equity participants in rural land contract and management and from circulation of rural land contract and management rights in other forms;

(3) Disputes arising from the withdrawal of or adjustments to contracted land;

(4) Disputes arising from the confirmation of rural land contract and management rights;

(5) Disputes arising from the infringement of rural land contract and management rights; and

(6) Other disputes over rural land contract and management as are prescribed in laws and regulations.

Disputes arising from the requisition of collectively owned land and the compensation involved are not within the scope of acceptance by the rural land contract arbitration committees and may be settled through an administrative reconsiderations or lawsuits or by other means.

Article 3 Where rural land contract and management disputes arises, the parties concerned may settle such disputes by seeking reconciliation among themselves or by filing a request for mediation with the relevant villagers’ committees or the people's governments of townships (towns).

Article 4 If the parties concerned fail or are not willing to settle disputes through reconciliation or mediation, the parties may apply to a rural land contract arbitration committee or may file a lawsuit directly with the relevant people's court.

Article 5 Mediation and arbitration of rural land contract and management disputes shall adhere to the principles of openness, fairness and impartiality, be convenient and efficient, and be conducted based on facts, in conformity with law and in line with social ethics.

Article 6 The people's governments at or above the county level shall strengthen the guidance over the mediation and arbitration of rural land contract and management disputes.

Administrative departments for rural land contract and other relevant departments under the people's governments at or above the county level shall, pursuant to the division of their duties and functions, support the relevant mediation organizations and rural land contract arbitration committees in carrying out the relevant work in accordance with the law.

Chapter II

Mediation

Article 7 Villagers’ committees or the people's governments of townships (towns) shall strengthen work relating to the mediation of rural land contract and management disputes and help the parties concerned reach an agreement to settle disputes.

Article 8 A party concerned, who applies for mediation of a dispute over rural land contract and management, may file an application orally or in writing. If an application is filed orally, the relevant villagers’ committee or the people's government of the township (town) shall take notes on site regarding the basic information of the applicant, the issues in dispute, the reasons for and the time of making such an application.

Article 9 When mediating rural land contract and management disputes, the relevant villagers’ committee or the people's government of the township (town) shall provide a full hearing to the parties concerned regarding their statements on the facts and grounds, impart the relevant laws and State policies to the parties concerned and help the parties concerned to reach an agreement on dispute settlement through patient persuasion.

Article 10 If an agreement is reached through mediation, the relevant villagers’ committee or the people's government of the township (town) shall prepare a written mediation agreement.

The written mediation agreement shall become effective after the two parties concerned affix their signatures and seals or fingerprints thereto and the relevant mediator affixes his/her signature and the seal of the relevant mediation organization thereto.

Article 11 The relevant arbitral tribunal shall mediate the rural land contract and management dispute. If an agreement is reached through mediation, the arbitral tribunal shall prepare the mediation statement; if the mediation fails, the arbitral tribunal shall render an arbitration award in a timely manner.

A mediation statement shall clearly state the arbitration claims and the results attained through the parties' agreement. The mediation statement shall be affixed with the signatures of the relevant arbitrators and the seal of the rural land contract arbitration committee and be served on both parties concerned.

The mediation statement shall become legally effective upon signing by both parties as their acknowledgment for receipt. Where either of the parties repudiates before signing on the mediation statement to acknowledge receipt, the arbitral tribunal shall make an arbitration award in a timely manner.

Chapter III

Arbitration

Section 1

Arbitration Committee and Arbitrators

Article 12 A rural land contract arbitration committee shall be established based on the actual needs for settling rural land contract and management disputes, and may be established either in a county, or a city without districts, or in a city with districts or its districts.

A rural land contract arbitration committee shall be established under the guidance of the local people's government. If a rural land contract arbitration committee is established, its daily work shall be undertaken by the local administrative department for rural land contract in the place where the rural land contract arbitration committee is located.

Article 13 A rural land contract arbitration committee shall be composed of representatives from the local people's government and its relevant departments, the relevant people organizations and rural collective economic organizations, farmers' representatives and legal, economic and other relevant professionals, who shall serve part-time with the rural land contract arbitration committee. At least half of the committee members shall be farmers' representatives and legal, economic and other relevant professionals.

A rural land contract arbitration committee shall have one chairperson, one or two vice chairpersons and several members. The chairperson and vice chairpersons shall be elected by all members of the rural land contract arbitration committee.

Article 14 A rural land contract arbitration committee shall perform the following duties in accordance with the law:

(1) Appointing and dismissing arbitrators;

(2) Accepting arbitration applications; and

(3) Supervising arbitration activities.

A rural land contract arbitration committee shall formulate the articles of association in accordance with this Law, which shall specify the method for selecting component members, the term of office and the rules of procedure, ect.

Article 15 A rural land contract arbitration committee shall appoint honest and upright persons as arbitrators.

An arbitrator shall satisfy one of the following requirements:

(1) Being engaged in work related to the administration of rural land contract and management for at least five years;

(2) Being engaged in legal work or people's mediation work for at least five years; and

(3) Being a reputed resident in the locality and having thorough understanding of the laws on rural land contract and management and the relevant State policies.

Article 16 A rural land contract arbitration committee shall impart training to the arbitrators in respect of laws on rural land contract and management and the relevant State policies.

The administrative department for rural land contract established under the people's government of a province, an autonomous region or a municipality directly under the Central Government shall formulate a training program for arbitrators and strengthen the organization of and guidance over the training of arbitrators.

Article 17 Arbitrators and members of a rural land contract arbitration committee shall perform their duties in accordance with the law, comply with the articles of association and arbitration rules of the rural land contract arbitration committee, and shall not extort or take bribes, engage in malpractices for personal gain, or infringe the legitimate rights and interests of the parties concerned.

If an arbitrator extorts or takes bribes, engages in malpractices for personal gain, perverts the law in making an arbitration award, accepts a party's treats or gifts, or commits other acts in violation of laws or disciplines, the rural land contract arbitration committee shall dismiss such arbitrator; if the act constitutes a criminal offence, such arbitrator shall be pursued for criminal responsibility in accordance with the law.

The people's governments at or above the county level and the relevant departments shall accept complaints and reports against the members and arbitrators of rural land contract arbitration committee regarding their acts in violation of laws and disciplines, organize investigation into the relevant cases and impose penalties in accordance with the law.

Section 2

Application and Acceptance

Article 18 The valid term for applying for arbitration of a dispute over rural land contract and management shall be two years, which shall be calculated from the date on which the party concerned knows or should have known that his rights have been infringed.

Article 19 The applicant and the respondent in an application for arbitration of a dispute over rural land contract and management are the parties concerned. If the rural land is contracted by a household, the representatives of the household may participate in arbitration. If one of the parties concerned consists of a large number of persons, the representatives selected thereof may participate in arbitration.

Anyone that has interests in the results of the case may apply to participate in arbitration as a third party, or the relevant rural land contract arbitration committee shall notify him to participate in arbitration.

The parties concerned and the third party may authorize agents to participate in arbitration.

Article 20 An application for arbitration of a dispute over rural land contract and management shall meet the following conditions:

(1) The applicant has immediate interests in the dispute;

(2) There is a clearly-defined respondent;

(3) There are specific arbitration claims, facts and grounds; and

(4) It is within the scope of functions and responsibilities of a rural land contract arbitration committee to accept the application.

Article 21 A party concerned that files an application for arbitration shall submit a written application to the rural land contract arbitration committee at the place where the land under dispute is located. The written application may be submitted by mail or through other persons entrusted. The written application shall state the basic information of the applicant and the respondent, the arbitration claims, facts and grounds, and shall provide corresponding evidence and the source of evidence.

If it is really difficult to file a written application, the application may be filed orally and the rural land contract arbitration committee shall make a record which shall be signed and affixed with a seal or affixed with a fingerprint thereon by the applicant after verification.

Article 22 A rural land contract arbitration committee shall examine the application for arbitration and accept the application if it deems that the application complies with the provisions in Article 20 hereof. The rural land contract arbitration committee shall not accept such an application as is involved in any of the following circumstances, and shall terminate the arbitration proceedings if such an application has been accepted:

(1) The application does not meet the conditions for filing an application;

(2) The relevant people's court has accepted such dispute;

(3) Such dispute should be handled by other institutions as prescribed by law; or

(4) A legally effective judgment, ruling, arbitration award or administrative decision has been made for such dispute.

Article 23 If a rural land contract arbitration committee decides to accept an application, the rural land contract arbitration committee shall serve the acceptance notification, arbitration rules and a list of names of the arbitrators on the applicant within five working days from the date on which the rural land contract arbitration committee receives the application for arbitration; if the rural land contract arbitration committee decides not to accept the application or terminates the arbitration proceedings, the rural land contract arbitration committee shall notify in writing the applicant and state the reason within five working days from the date on which the rural land contract arbitration committee receives the application for arbitration or finds the circumstances under which the arbitration proceedings should be terminated.

Article 24 The rural land contract arbitration committee shall, within five working days from the date on which it accepts the application for arbitration, serve the acceptance notification, duplicate of a written application, arbitration rules and a name list of arbitrators on the respondent.

Article 25 The respondent shall, within ten days from the date on which he receives the duplicate of a written application for arbitration, submit a statement of defense to the relevant rural land contract arbitration committee; if it is indeed difficult to submit a statement of defense in writing, the statement of defense may be made orally, and a written record of the statement shall be made by the rural land contract arbitration committee, which shall be signed, affixed with seal or fingerprint by the respondent after verification. The rural land contract arbitration committee shall serve on the applicant the duplicate of the written statement of defense within five working days from the date on which the rural land contract arbitration committee receives the written statement of defense. Where the respondent fails to make a statement of defense, the arbitration proceedings shall be carried out without being affected thereby.

Article 26 A party may apply for property preservation if any of the other party's acts or any other reason is likely to make it difficult or impossible to enforce an arbitration award.

Where a party makes an application for property preservation, the relevant rural land contract arbitration committee shall submit such application filed by the party concerned to the primary people's court at the place where the respondent is domiciled or the property is located.

Where an erroneous application is filed, the applicant shall compensate the respondent for losses resulting from property preservation.

Section 3

Composition of an Arbitral Tribunal

Article 27 An arbitral tribunal shall be composed of three arbitrators. The presiding arbitrator shall be selected jointly by the two parties and the other two arbitrators shall be selected respectively by the two parties; if the parties fail to select the arbitrators, the chairperson of the rural land contract arbitration committee shall designate the arbitrators.

With respect to a rural land contract and management dispute, if the facts in the case are clear, the relationship between rights and obligations is explicitly defined and there is no significant problem involved in the dispute, the arbitration of such dispute may be handled by one arbitrator upon consent of the two parties concerned. The arbitrator shall be selected jointly by the two parties or assigned by the chairperson of the rural land contract arbitration committee.

The rural land contract arbitration committee shall notify the parties concerned of the composition of the arbitral tribunal within two working days from the date on which the arbitral tribunal is composed.

Article 28 If an arbitrator falls under any of the following circumstances, the arbitrator must withdraw from a case, and any of the parties concerned shall have the right to file an application orally or in writing to request such arbitrator to withdraw:

(1) Being one of the parties concerned, or is a near relative of a party concerned or to an agent in the case;

(2) Having an interest in the case;

(3) Being otherwise connected with one of the parties concerned or one of the agents in the case to the extent that the impartial arbitration of the case is likely to be affected; or

(4) Having met in private with one of the parties concerned or an agent in the case, or having accepted a treat or a gift from that party or agent.

Where a party applies to request an arbitrator to withdraw from a case, the reasons shall be stated and an application shall be made prior to the first hearing. If the cause for withdrawal is known after the first hearing, an application may be made by the end of the final hearing.

Article 29 A rural land contract arbitration committee shall make a decision to approve or disapprove an application for withdrawal from the relevant arbitration proceedings in a timely manner and notify the parties concerned orally or in writing and state the reasons.

The chairperson of a rural land contract arbitration committee shall make a decision on whether or not an arbitrator should withdraw from the arbitration proceedings; where the chairperson of the rural land contract arbitration committee acts as an arbitrator, such a decision shall be made collectively by the rural land contract arbitration committee.

Where an arbitrator fails to perform his/her duties due to his/her withdrawal from the case or for any other reason, another arbitrator shall be selected or appointed in accordance with this Law.

Section 4

Hearings and Arbitration Awards

Article 30 The arbitration of rural land contract and management disputes shall be carried out by conducting hearings.

A hearing may be held in a township (town) or a village where the land involved in a dispute is located or at the place where the relevant rural land contract arbitration committee is located. If both parties concerned request to hold a hearing in a township (town)or a village, the hearing shall be held in such township (town) or village.

The hearing shall be held publicly unless the disputes involve State secrets, trade secrets, personal privacy or matters that are not open to the public as agreed by the parties concerned.

Article 31 The arbitral tribunal shall notify the parties concerned and other arbitration participants of the time and place of a hearing five working days prior to holding a hearing.

If a party has a justifiable reason, it may request the arbitral tribunal to change the time or place of a hearing. The arbitral tribunal shall decide whether the time or place should be changed.

Article 32 After filing an arbitration application, the parties concerned may settle the relevant disputes by seeking reconciliation between them. Where the parties reach a reconciliation agreement, they may either request the arbitral tribunal to make an arbitration award on the basis of the reconciliation agreement, or withdraw the arbitration application.

Article 33 An applicant may waive or modify an arbitration claim. The respondent may accept or reject the arbitration claim and shall have the right to make a counterclaim.

Article 34 If an applicant withdraws the arbitration application before the arbitral tribunal renders an arbitration award, the arbitral tribunal shall terminate the arbitration proceedings unless the respondent files a counterclaim.

Article 35 Where an applicant, who has been notified in writing fails to appear at the arbitration hearing without a justifiable reason, or leaves the hearing venue before the end of the hearing without the permission of the arbitral tribunal, the applicant may be deemed to have withdrawn his/her arbitration application.

Where a respondent, who has been notified in writing fails to appear at the arbitration hearing without a justifiable reason, or leaves the hearing venue before the end of the hearing without the permission of the arbitral tribunal, a default award may be made.

Article 36 Any party concerned shall have the right to express its opinion, state facts and grounds, provide evidence, examine evidence and debate during a hearing. If a party does not know the language and characters commonly used in the local region, the relevant rural land contract arbitration committee shall provide him/her with translation or interpretation services. Article 37 Any party concerned shall present evidence in support of its claims. If the evidence relating to the dispute is under the control or management of a party who is the contractee, such party shall provide the evidence within the time limit specified by the arbitral tribunal; such party shall bear the adverse consequences if it fails to do so within the time limit.

Article 38 An arbitral tribunal may collect evidence on its own if it deems necessary.

Article 39 Where an arbitral tribunal believes that a special issue needs to be appraised, the arbitral tribunal may refer it to an appraisal agency agreed by the parties concerned; an appraisal agency shall be designated by the tribunal if the parties concerned do not have an agreement on an appraisal agency.

At a party's request or the tribunal's requirement, the aforesaid appraisal agency shall assign appraisers to attend the hearing. Subject to the tribunal's permission, a party may put questions to the appraisers.

Article 40 The relevant evidence shall be presented during a hearing; however, the evidence involving State secrets, trade secrets or personal privacy shall not be presented during a public hearing.

The arbitral tribunal shall hold a hearing in accordance with the rules of arbitration, give equal opportunity to both parties for statement and debate, and organize the parties to conduct evidence examination. Evidence verified by the arbitral tribunal shall serve as a basis for recognizing a fact.

Article 41 Under the circumstances that the relevant evidence is likely to be lost or damaged or difficult to obtain in the future, a party concerned may apply for evidence preservation. Where a party applies for evidence preservation, the relevant rural land contract arbitration committee shall submit such application to the primary people's court of the place where the evidence is located.

Article 42 With respect to a dispute in which the relationship between rights and obligations is clear, the relevant arbitral tribunal may, upon the application filed by a party concerned, render a preliminary award to maintain the current status, restore agricultural production and suspend such actions as taking away soils from land or occupying land.

If one of the parties fails to perform such preliminary award, the other party may file an application for enforcement with the relevant people's court and provide the relevant guarantee.

Article 43 The arbitral tribunal shall make a written record of the hearing and the relevant arbitrators, tribunal clerk, parties concerned and other arbitration participants shall affix their signatures, seals or fingerprints to such record.

Where a party or any other participant in the arbitration believes that the record of its own statements contains an omission or error, the aforesaid party or participant shall be entitled to file an application for corrections or supplements. Such application shall be registered if the applied corrections or supplements are rejected.

Article 44 The arbitral tribunal shall make an award based on recognized facts and in accordance with the relevant laws and State policies, and shall produce a written arbitration award.

An arbitration award shall be made according to the opinion of the majority of arbitrators. The dissenting opinions of the minority arbitrators may be recorded in writing. In the event that the arbitral tribunal fails to attain a majority opinion, an arbitration award shall be made according to the presiding arbitrator's opinion.

Article 45 An arbitration award shall clearly state the arbitration claims, disputed facts，grounds for making the award, award results, date of the award and the right of the parties concerned to file a lawsuit in the case of dissatisfaction with the arbitration award and the time limit for such action. The written award shall be signed by the arbitrators and affixed with the seal of the rural land contract arbitration committee.

The rural land contract arbitration committee shall, within three working days from the date on which the award is made, serve the award on the parties concerned and notify the parties concerned of the right to file a lawsuit in the case of dissatisfaction with the arbitration award and the time limit for taking such action.

Article 46 An arbitral tribunal shall independently perform its duties in accordance with the law, and shall not be intervened by any administrative organ, social group or individual.

Article 47 Arbitration of a dispute over rural land contract and management shall be accomplished within 60 days from the date on which the application for arbitration is accepted; if the case is complex and a necessary extension of the period for arbitration is needed, the arbitration period may be extended upon approval by the chairperson of the rural land contract arbitration committee, and the parties concerned shall be notified of the extension in writing; however, the extension period shall not exceed 30 days.

Article 48 If a party is dissatisfied with an arbitration award, the party may file a lawsuit with the relevant people's court within 30 days from the date of receipt of the award. If the party fails to file a lawsuit within the time limit, the award shall become legally effective. Article 49 The parties concerned shall perform a legally effective statement of mediation or arbitration award within the specified time limit. If one of the parties fails to do so on the expiration of the said time limit, the other party may file an application for enforcement with the primary people's court at the place where the respondent is domiciled or the property is located. The people's court that accepts the application shall conduct the enforcement in accordance with the law.

Chapter IV

Supplementary Provisions

Article 50 For the purposes of this Law, "rural land" shall mean State-owned agricultural lands or agricultural lands collectively owned by farmers, which are used by farmers collectively in accordance with the law, including cultivated lands, forest lands, pastureland and other lands used for agricultural purposes according to the law. Article 51 Rules for arbitration of rural land contract and management disputes and the sample articles of association of a rural land contract arbitration committee shall be jointly formulated by the departments in charge of agriculture and forestry under the State Council in accordance with this Law.

Article 52 Arbitration of rural land contract and management disputes shall be conducted free of charge. Expenditures for conducting arbitration shall be included in the fiscal budgetary plan and guaranteed by the government.

Article 53 This Law shall go into effect as of January 1, 2010.