Originally from Dispute Resolution in China - Second Edition

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I. Introduction

Mediation as a form of commercial dispute resolution has regained currency in recent years, with the legal and business communities embracing it as a relatively low cost means to resolve commercial disputes. Recently, the Chinese authorities and relevant dispute resolution institutions have taken the initiative to make adjustments to encourage, support and enhance mediation.

This chapter focuses on mediation in China, the ongoing developments, key features, challenges, and trends.

A. What is Mediation?

Mediation, sometimes referred to as “conciliation,” is an informal process whereby a neutral third party is used to facilitate negotiation and resolution between disputing parties.  There are many forms of mediation, ranging from adversarial to collaborative, from stand-alone mediation to mediation during a formal dispute resolution process.  Additionally, mediation can occur at any time during the dispute, from inception to post-award.

B. Advantages of Mediation

The advantages of mediation include informality, flexibility, confidentiality, time and costs savings, and its non-litigious framework.