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Investing In China: Arbitrating Your Disputes By: David Carnes | Nov 29th 2006 - Arbitration is the most popular commercial dispute resolution method in China. An arbitration agreement, whether before or after a dispute arises, is a necessary prerequisite to any form of arbitration. If this option is chosen it is best to include a carefully drafted arbitration clause in the contract, because a sloppily drafted clause might end up in the People's Courts - first to decide whether or not it is binding, and if it is not, to decide the underlying dispute.