Consistent with the state’s policy of promoting mediation, commercial disputes in China are frequently settled through mediation. As a foreign enterprise doing business in China, it is important to understand the nature and practice of commercial mediation.
The article introduces foreign enterprises to the Chinese court system and arbitration regime and the position of mediation within the country’s commercial dispute resolution context. It highlights the practical aspects and potential pitfalls of commercial mediation in China.
Mediation of commercial disputes may occur during a lawsuit (court mediation) or arbitration proceedings (med-arb). It may also occur as private mediation through independent institutions