Prior to the issue of the Draft Regulations, there are two main documents regarding commercial mediation, the “Several Opinions on Establishing and Improving Dispute Resolution Mechanisms that Connect Litigation and Non Litigation” issued by the Supreme People’s Court in 2009 and the “Opinions on Further Deepening the Reform of Diversified Dispute Resolution Mechanisms in People’s Courts“ issued by the Supreme People’s Court in 2016.The Draft Regulations is the first regulatory text on commercial mediation at the national level in China, which fills the legal gap in China’s commercial mediation system.

As an effective dispute resolution mechanism, commercial mediation has become one of the ideal means of international commercial dispute resolution due to its flexibility, confidentiality, and efficiency.

“The United Nations Convention on International Settlement Agreements Resulting from Mediation (“the Singapore Convention”)” was effective from 2020, China has signed the Convention though the Convention has not yet come into effect for China. In order to align with the Convention, China is exploring the establishment of domestic legal mechanisms that are compatible with the Convention. The Draft Regulations aim to achieving the effectiveness of cross-border enforcement of international settlement agreements to facilitate the resolution of international trade disputes.

·       Procedure for establishment

1. The applicant shall apply to the judicial administrative department of the city level people’s government where it is located, submit a registration application and relevant materials.
2. The department accepting the application shall conduct a preliminary examination within 20 working days from the date of acceptance, and submit the examination opinions to the judicial administrative department of the people’s government of the province, autonomous region, or municipality directly under the Central Government.
3. The judicial administrative departments of the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government shall conduct an examination within 10 working days after receiving the examination opinions and make a decision on whether to approve registration. If registration is granted, a registration certificate shall be issued to the applicant. If registration is not allowed, provide the applicant with a written explanation of the reasons.

(1)      Obtained legal professional qualification through the national unified legal professional qualification examination and engaged in commercial mediation work for at least 3 years;

(2)      Engaged in legal, arbitration, notarization work or served as a judge or prosecutor for at least 3 years;

(3)      Having relevant professional knowledge in law, economics, science and technology, engaged in legal or economic trade work, and possessing intermediate or higher professional titles or equivalent professional levels;

(4)      Engaged in commercial mediation work for at least 3 years and holding a bachelor’s degree or above before the implementation of this regulation.

It is worth noting that commercial mediators shall participate in training in accordance with relevant regulations.

Principles of commercial mediation

As another dispute settlement mechanism other than litigation and arbitration, mediation has its advantages of high efficiency and convenience. Thus, enterprises shall carefully consider whether to include commercial mediation as the dispute resolution mechanism in commercial agreement, and also consider and choose a suitable commercial mediation organization for mediation process.

II.       Establishment of the IOMed

Another event marked a milestone for mediation in China. The Convention on the Establishment of the International Organization for Mediation is an international convention formulated for the establishment of International Organization for Mediation (the “IOMed”). The Convention was signed by representatives of 33 countries in Hong Kong on May 30, 2025.