Mediation has been an intrinsic part of Chinese culture for thousands of years. Since ancient times, respected and impartial figures have facilitated mediation as a means of helping parties resolve disputes. However, as Chinese society has evolved, so too have expectations surrounding mediation. From the feudal era to the imperial period and eventually to modern times, the Chinese view of mediation has undergone significant transformations. Today, China recognizes mediation as an effective dispute resolution mechanism, adapting this ancient practice to the needs of modern commerce, social norms, and legal systems.
The Importance of Mediation in Modern China
In recent years, China has placed renewed emphasis on the role of mediation. What was once facilitated by wise village elders has now become a process that requires professional training and infrastructure. Professional training programs, court-affiliated mediation systems, legislative reforms, and online dispute resolution innovations have formed the foundation for modern mediation approaches in China. Recently, the country has committed to the rule of law, an advancement that, while positive, has increased the rate of litigation and strained court resources. With its cultural roots as a guide, mediation in China is expected to relieve this heavy litigation burden and play a more prominent role in the future.
Types of Mediation in China
Five main types of mediation are practiced in China today: People’s Mediation, Judicial Mediation, Administrative Mediation, Med-Arb (Mediation-Arbitration), and Industry Mediation.
People’s Mediation: This form of mediation is organized by the public in villages, neighborhoods, or factory units. People’s Mediation Committees (PMCs) are autonomous entities recognized by the Chinese Constitution and tasked with resolving civil disputes. There are approximately four million people’s mediators across China.
Judicial Mediation: Conducted by judges in court, judicial mediation is an attempt to mediate between parties before initiating a formal trial. If mediation fails, the case proceeds through the judicial process.
Administrative Mediation: Managed by government agencies, administrative mediation aims to resolve disputes related to public order. Government authorities conduct mediation in areas such as environmental issues, land use, public safety, and eldercare, enabling a quicker resolution of these conflicts.
Med-Arb (Mediation-Arbitration): Used primarily to resolve commercial disputes, Med-Arb is a two-stage process where parties attempt to reach an agreement with a mediator. If unsuccessful, the mediator/arbitrator renders a binding decision. This method is frequently used in major commercial contracts.
Industry Mediation: In industrial and commercial sectors, industry mediation addresses sector-specific disputes, such as labor-management conflicts, insurance, and intellectual property. This process, led by professional mediators specialized in these industries, facilitates quicker and more effective settlements among parties.
Cultural Comparisons: Mediation in China and the West
Chinese mediation culture, rooted in its historical and philosophical foundations, presents distinct differences from Western practices. Influenced by Confucianism and Taoism, which emphasize peaceful solutions, mediation in China has been a fundamental approach to dispute resolution for centuries. This approach prioritizes harmony among individuals, the greater good of society, and resolving conflicts at a personal level. Mediation in China aims to repair relationships and maintain social cohesion.
In contrast, Western mediation often emphasizes individual rights and freedoms. In Western legal systems, mediation is viewed as a process that supports the parties’ autonomy in making decisions and advocating for their interests. Mediation in the West generally addresses disputes within a legal and contractual framework, with a neutral mediator facilitating the process. This approach places importance on protecting personal interests and enabling parties to develop solutions through negotiation.
Key Differences:
- Social Harmony vs. Individual Rights: Chinese mediation focuses on preserving social order and harmony within the community, while Western mediation prioritizes protecting individuals’ rights and interests. In China, mediation encourages sacrifice and compromise to promote social peace, while in the West, mediation enables parties to develop their solutions
- Formal vs. Informal Mechanisms: In China, people’s mediation operates at the village and neighborhood levels, often through informal structures, whereas Western mediation is generally conducted by professional, trained mediators. Western mediation processes are more closely aligned with legal frameworks and professional standards.
- Role of the Mediator: In China, the mediator plays a more directive role in fostering peace between the parties. In the West, however, the mediator’s role is limited to facilitating communication and assisting the parties in finding solutions. While Western mediators maintain neutrality, Chinese mediators take on a more active responsibility in resolving the conflict.
- Confidentiality: Confidentiality is fundamental and legally protected in Western mediation processes, whereas people’s mediation in China may occur more transparently within local communities. This transparency serves the purpose of maintaining social order and harmony in China.
Innovations in Mediation
There are five significant changes in China’s modernization of mediation:
- Emphasis on Individual Rights: Traditional Chinese mediation was rooted in Confucian ethics, often encouraging parties to accept faults and make sacrifices for peace. However, individual rights have gained greater importance in modern China. Mediation is increasingly seen as a process that allows individuals to protect their rights.
- Professionalization of Mediation: People’s mediators in China were typically individuals without professional training. Today, more resources are allocated to training mediators and establishing professional mediation organizations. Specialized mediators have emerged in sectors such as insurance, intellectual property, and other industries.
- Institutional Cooperation: Collaboration between courts and professional mediation organizations has increased. Parties can resolve disputes within mediation institutions and have these agreements ratified in court. Similarly, courts may refer cases to mediation institutions.
- Legislation and Institutionalization: China has enacted the People’s Mediation Law and established comprehensive regulations regarding mediation in the Civil Procedure Law. These regulations address the selection of mediators and the judicial confirmation of agreements resulting from mediation.
- Use of Technology: In 2017, the Chinese Supreme Court launched an online dispute resolution platform, www.fayuan.com, transitioning dispute resolution processes to digital platforms. By 2023, the platform had been significantly expanded, resolving 13.6 million disputes with a 65% success rate. The platform now includes 32,900 mediation organizations and 165,000 mediators, handling an average of 17,000 cases daily. Additionally, it is integrated with 3,501 courts and mobile services, enabling parties to participate in video conferences and electronically sign legal documents.
Achievements and Innovations in Mediation
China has achieved notable progress in developing mediation in recent years, with the following main advancements:
- Strengthening and standardizing people’s mediation, with the establishment of 693,000 people’s mediation committees and 17,000 personal mediation studios across China. This network is supported by 3.18 million mediators, including 412,000 full-time mediators.
- Development of specialized mediators for private sectors, such as insurance, intellectual property, internet, and finance, allowing for more complex commercial disputes to be resolved.
- Establishing international commercial mediation centers, particularly in Shanghai, Guangdong, and Hainan, under the Belt and Road Initiative (BRI), which play a significant role in resolving international disputes.
- Regulation of administrative mediation processes by various government agencies, providing an effective solution in disputes involving land, environment, and eldercare.
- Launching innovative programs in free trade zone pilot areas for commercial mediation organizations, with active collaboration with local administrations during the 2023-2025 period.
The Belt and Road Initiative: China’s Global Strategy
The Belt and Road Initiative (BRI), launched by China in 2013, is a massive economic and infrastructure project aimed at reshaping global trade routes. By connecting Asia, Europe, and Africa through land and sea routes, the BRI seeks to bolster China’s global economic power. With a vision to revive the historic Silk Road in a modern context, the BRI aims to strengthen China’s influence in international trade and investment. Under this project, large-scale investments are being made in railways, ports, power plants, and communication infrastructures, enhancing China’s commercial impact while offering economic development opportunities to participating countries.
However, the initiative has also faced criticism from many countries as a form of “debt-trap diplomacy,” with concerns that China could control strategic infrastructures in participant countries if debts are not repaid, potentially restricting these countries’ political independence. Thus, the BRI is viewed as both an economic development strategy and a geopolitical influence mechanism. In significant processes like the Saudi Arabia-Iran peace negotiations and the Six-Party Talks, China’s role as a mediator reflects its interest in the stability and sustainability of the initiative. Through the BRI, China aims to strengthen its position as a global peace actor by protecting its economic interests and promoting stability.
