1. Arbitration Systems in China
In September 1st, 1995, the Arbitration Law has begun to be implemented by Chinese government. Compared with former arbitration system, this law has peculiar characteristics. For instance, uniform arbitration systems throughout the country has been established, the scope of arbitration design has become more specific, arbitration organs have transformed their working style by introducing more humanity into their work while reducing former administrative characteristics, the willingness of the parties will be fully considered and the specific style of the supervision of the court over arbitration should be definitely regulated.
Arbitration, especially commercial arbitration has been accepted and attached great importance to by all parties in the commercial dispute.
Up to now, more than 170 arbitration organs have been established and reconstructed of Chinese governments at all levels. More than 30 thousand arbitrators have been absorbed in the army of arbitrators, more than 140 thousand arbitration cases have been dealt with by accumulation, and the total amount of bid has reached up as high as 230 billion Yuan. And the number of persons involved in the cases has reached up as high as 50 countries and regions，the growth rate of commercial arbitrations dealt with throughout the country has been growing with a rate of more than 25%.
2． The role of arbitration in China's commercial disputes
2.1 Arbitration has not grown powerful enough in the settlement of China's commercial disputes.
Modern arbitration systems in China have been formulated in China for more than 10 years, in particular, the amount of arbitration over commercial disputes in recent years has been growing gradually and even doubled. However, great difference still remains when compared with the amount of commercial lawsuit dealt with by courts. Take the statistical data of the State Council in 2002 for example, the total amount of commercial arbitration cases dealt with by 168 arbitration committee throughout the nation has reached up to 17959, and total amount of money involved is 34.2 billion Yuan. According to the statistical data of the high court, in 2002, the contract lawsuit dealt by the court is 226,695. And the proportion that arbitration cases have taken up lawsuit cases is only 0.79%.（Zhang，2004）
Author of the paper believes that China's commercial development has long been constrained in the past 2000 years. People tend to deal with their disputes through courts, and they are not accustomed to use social strength to eliminate the conflicts within the market economy. And this inertial way of thinking still remains. Of course, this can also be related with currently operated arbitration regulation for China's arbitration system has no final effectiveness.
2.2 Rigid nature of the role of arbitration in China's Commercial disputes
China's arbitration system is different from western countries' long developed and evolved arbitration system in that Chinese government attempts to plant a well designed arbitration system into a society that has been experiencing transformation. This born nature of plantation in China's arbitration has become too rigid and stubborn in dealing with this complex commercial dispute. For instance, both parties wish to settle one of their commercial disputes. The result is that although the dispute has been resolved, former harmonious relations would no longer exist. Cooperation that has been formed through years has been broken because of arbitration, so that the parties often believe that the resolution of problems through arbitration do no pay.
2.3 The administrative nature renders all parties in commercial disputes doubt the neutrality and justice.
According to the Arbitration Law, the arbitration committee is founded by the related departments in the government and the union of commerce. The arbitration committee is separate from administrative organs so that it is not subject to the administrative organs. However, the real situations is that administrative organs interfere into the arbitration activities, and some local governments even try to make arbitration committee the functional departments of the governments, and are accustomed to interfere into the work of arbitration committee with administrative measures. For instance, some newly-rebuilt arbitration committee is founded depending on the fund raised by the law office of government, and the arbitration conferences are often organized by related organizations of the State Council. （Song；Zhao，2000）The following measures have seriously affected the healthy development of the arbitration business of China. Under the protection of the administrative power of the government, people tend to doubt on the neutrality and justice of arbitration, so that the arbitration organizations would lose the credit.
3. Problems existing in China's arbitration execution
3.1 Difficulties in China's arbitration execution
4．Reform propositions of arbitration persecution
4.1 Arbitrators are endow with participation rights in judicatory supervision.
t is strongly suggested that the opinions of arbitrators be fully considered before the court's final decision. Arbitrators' permission to participate in judicatory supervision can help judges acquire more proof and the principle of righteous procedures can be ensured.
4.2 All parties in arbitration are endow with appealing right and retrial right.
The writer believes that the endowment of appealing right and retrial right can help reduce the appearance of mistakes in judicatory supervision, and the lawful interests of all parties can be more effectively protected. （sun，2002）
4.3 Cancellation of the court's virtual supervision of the arbitration trial
China's accession to WTO has made arbitration in compliance with international trend. The virtual supervision of the court's arbitration trial should be cancelled, which had better be clearly regulated in the Law of Arbitration.
4.4 Establishment of China Arbitration Association
4.3 Perfection of the subsidiary measures that help persecute arbitration

Reference: