Mediation for Dispute Resolution in China

Mediation has deep roots in Chinese culture and is increasingly used for commercial disputes. Here's how mediation works in China and when it's the right choice.

Why Consider Mediation?

• Faster than litigation or arbitration
• Lower costs
• Preserves business relationships
• Confidential process
• Parties control the outcome
• Culturally appropriate in China

Types of Mediation

People's Mediation

• Community-based mediation
• Free service
• For minor disputes

Commercial Mediation

• Professional mediators
• Business disputes
• Institutional or ad hoc

Court-Annexed Mediation

• Mediation within court proceedings
• Judge or appointed mediator
• Settlement becomes court judgment

The Mediation Process

1. Agreement to mediate
2. Selection of mediator
3. Preliminary submissions
4. Joint session
5. Private caucuses
6. Negotiation of terms
7. Settlement agreement

Med-Arb

Combination of mediation and arbitration:

• Try mediation first
• If unsuccessful, proceed to arbitration
• Same or different neutral
• Popular in China

Enforcing Mediation Agreements

In China

• Apply to court for confirmation
• Becomes enforceable judgment
• Or convert to arbitration award

Internationally

• Singapore Convention on Mediation
• China has signed but not ratified
• Consider arbitration for international enforcement

When Mediation Works Best

• Ongoing business relationship
• Both parties want resolution
• Issues are negotiable
• Time and cost are concerns
• Confidentiality is important

When to Avoid Mediation

• Need legal precedent
• Significant power imbalance
• Other party acting in bad faith
• Urgent interim relief needed