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Resolving a dispute through mediation in China is one of the most effective ADR methods. Those planning to start a business in the PRC  should keep in mind that mediation is often used to resolve financial disputes as well. 

So, let’s take a closer look at the legal requirements for settling a dispute by mediation in China & procedural features of such proceedings.

Dispute Resolution by Mediation in China

Those intending to resolve a dispute by mediation in China should keep in mind that mediation proceedings are regulated by the Mediation Act & rules of local mediation institutions. These rules include:

  • requirements for initiating mediation in China;
  • appointment of mediators;
  • participation of experts;
  • duties and rights of mediators & parties;
  • mediation agreements;
  • validity & enforcement of a mediation agreement in China.

Those seeking to initiate mediation proceedings in the PRC should keep in mind that this process does not interrupt the statute of limitations for litigation or arbitration.

Mediation procedure is strictly confidential. Parties, mediators and the staff of a mediation institution must, therefore, maintain complete confidentiality & ensure that all information pertaining to mediation proceedings isn’t disclosed to 3rd parties. 

Although the Mediation Act doesn’t explicitly regulate this obligation, the overwhelming majority of rules issued by mediation commissions & institutions require parties to the mediation process to comply with non-disclosure provisions in all matters related to mediation. 

Exceptions can be made for cases when parties expressly authorize the disclosure of information when settling a dispute in the People's Republic of China.

Considering resolving a dispute through mediation in China? Need advice on mediation regulation in the PRC? Why not contact IQ Decision UK?