Mediation in China

Quick Facts

• Legal Framework: China's mediation framework is anchored by the People's Mediation Law, which establishes the legitimacy and voluntary nature of people's mediation, clarifies mediation procedures, and affirms that med...
• Cultural Approach: Mediation in China has deep cultural roots in Confucian ethics, where mediators traditionally persuaded parties to reflect on their mistakes, give up their interests, and compromise to settle disputes...
• Typical Costs: People's mediation conducted through People's Mediation Committees is typically low-cost or free, as mediators are often volunteers or poorly paid. Court-annexed judicial mediation is generally includ...

Mediation Research

Legal Framework

China's mediation framework is anchored by the People's Mediation Law, which establishes the legitimacy and voluntary nature of people's mediation, clarifies mediation procedures, and affirms that mediation agreements are legally binding. The Civil Procedure Law provides for mediation by people's courts, establishing mediation as a fundamental principle of civil litigation. The Supreme People's Court has issued provisions on civil mediation by people's courts and judicial confirmation procedures for people's mediation agreements. China signed the Singapore Convention on Mediation in 2019, which provides that certain international commercial settlement agreements may be directly enforceable in member countries. The 2024 Legislative Work Plan lists the Regulations on Commercial Mediation as a key legislative project. The Zhuhai Municipal People's Congress adopted the Commercial Mediation Regulation of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, effective January 1, 2025.

Court System

Courts actively promote and facilitate mediation through various mechanisms. Judicial mediation is performed by judges, usually prior to trial, and in many cases a judge must first try to mediate a case. The Supreme People's Court launched a national online dispute resolution platform (www.fayuan.com) in 2017, with over 1,000 courts and 12,000 mediation organisations joining within one year. Courts can refer cases to mediation organisations and confirm mediation agreements through judicial confirmation, granting them the same legal force and enforceability as court judgments. The judiciary has experienced unprecedented growth in caseloads (67% increase from 2019 to 2024, from 28.7 million to 48 million cases), creating pressure to promote mediation as a way to resolve disputes efficiently.

Mediator Regulations

China has approximately 4 million people's mediators, far more than the number of judges or lawyers. However, almost none have received professional training historically. People's Mediation Committees are usually underfunded, with most mediators either poorly paid or entirely voluntary, and almost all are part-time. Recent reforms focus on professionalization, with more resources being used to train and educate mediators. Professional mediation organisations have emerged in insurance, securities, intellectual property, and other sectors, and China has begun to see its first full-time mediators. New regulations on commercial mediation establish standards for mediators and mediation organisations, requiring mediators to possess professional qualifications. The Central Chinese Government is pushing for greater professionalization and institutionalization of mediation.

Cultural Approach

Mediation in China has deep cultural roots in Confucian ethics, where mediators traditionally persuaded parties to reflect on their mistakes, give up their interests, and compromise to settle disputes. Making the dispute disappear for the betterment of the group was more important than individual desires and rights. As China pushes toward Rule of Law and provides more rights to citizens, modern mediation is evolving to focus more on party rights than overall group harmony. The cultural emphasis on harmony and face-saving remains strong. Chinese mediation style is typically more interventionist, with mediators actively guiding parties toward settlement. The vast network of People's Mediation Committees at the grassroots level reflects the cultural preference for community-based dispute resolution.

Typical Costs

People's mediation conducted through People's Mediation Committees is typically low-cost or free, as mediators are often volunteers or poorly paid. Court-annexed judicial mediation is generally included in court proceedings. Commercial mediation centres charge fees based on dispute value and complexity. The WIPO Centre offers reduced administration and mediator fees for cases referred by courts in China. Professional mediation organisations in sectors like insurance, securities, and intellectual property have their own fee structures. The cost savings compared to litigation are significant, with mediation typically resolving disputes in weeks rather than months. The judicial confirmation mechanism for mediation agreements provides enforceability without additional court proceedings.

States and Regions