Compared with other methods for resolving civil and commercial disputes, arbitration has the following advantages:

1. Voluntariness. Arbitration is based on an arbitration agreement voluntarily reached by the parties, who may negotiate on whether disputes will be submitted for arbitration, which institution will arbitrate, what matters will be arbitrated, arbitrators, etc.

2. Fairness. Arbitration follows the principle of impartial and reasonable resolution of disputes based on facts in accordance with the law. Arbitration is conducted independently in accordance with the law, not subject to hierarchical jurisdiction or regional jurisdiction, and free from interference by administrative organs, social groups, and individuals. Arbitrators are highly professional and of good moral quality, ensuring the fairness and impartiality of awards.

3. Timeliness. An arbitral award shall be final and binding, and shall become legally effective immediately after it is made. Arbitration procedures are relatively flexible, simple and convenient, and the parties may choose arbitration procedures by agreement to avoid cumbersome links and resolve disputes in a timely manner.

4. Cost-effectiveness. Arbitration can resolve disputes in a timely manner, and reduce the time and energy spent by the parties, thereby saving their costs.

5. Confidentiality. Arbitration is conducted in private, which is conducive to protecting trade secrets and safeguarding business reputation.

6. Enforceability. Once made, an arbitral award shall become legally effective and binding upon both the parties. Both parties shall conscientiously perform the arbitral award, otherwise the right holder may petition to the people’s court for enforcement in accordance with the law.