Set against the backdrop of the current creative economy and knowledge-based economy, intellectual property (IP) has advanced to an important area of law. Along with the rapid development of IP and the increasing IP transactions, it is no surprise that disputes involving intellectual property rights occur more frequently. Although arbitration, as an old form of dispute resolution other than litigation, has been playing a very significant role in resolving the increasing IP disputes, there is no general consensus on the issue, in particular with regard to the question whether all kinds of the IP disputes, including IP contract disputes, IP infringement disputes, and disputes on the validity of IP, can be submitted to arbitration. The countries who oppose the arbitration of IP disputes mainly consider that if disputes on the validity of IP are submitted to arbitration which is of private nature, the arbitral award may challenge the public authority and may run counter to public policy which is being regarded as the local standards of morality and justice. In China, (here mainly refers to the People’s Republic of China (PRC), not including Hong Kong & Macau SARs and Taiwan), based on the relevant laws, such as the Arbitration Law of PRC, the Copyright Law of PRC, the Patent Law of PRC, and the Trademark Law of PRC, it can be concluded that disputes on the validity of IP have been stipulated by law to be settled by administrative organs and they are limited to arbitration. Therefore, conflicts between the arbitrability of disputes on the validity of IP on the one hand and the public policy on the other have the potential of becoming a serious issue in China. However, many related issues provide strong support for the recognition of the arbitrability of disputes on the validity of IP, such as the nature and purpose of IP, the reasonable application of public policy, and the features and significance of arbitration. Meanwhile, the international practical experiences provided by some countries and international organizations also have great significance on China concerning the recognition of arbitrability of disputes on the validity of IP. These key points constitute the basis for the recognition of the arbitrability of disputes on the validity of IP and the coordination between intellectual property arbitration and public policy in China.