On Dec. 19, 2025, the State Council of the People’s Republic of China approved the Regulations on Commercial Mediation (New Regulations), creating the country’s first dedicated administrative framework for commercial mediation. This milestone follows the May 2025 launch of the International Organization for Mediation—the world's first permanent intergovernmental organization dedicated to mediating international disputes, initiated by China and headquartered in Hong Kong. Together, these developments signal a significant step toward the institutionalization and internationalization of commercial dispute resolution in China. 

The U.S. experience demonstrates how legislation can accelerate the development and institutionalization of mediation. Two regulatory developments proved transformative in the United States:

• The 1993 amendment to Rule 16 of the Federal Rules of Civil Procedure, which encouraged federal courts to explore mediation
• The Administrative Dispute Resolution Act of 1996, which mandated the use of alternative dispute resolution (ADR) within federal agencies

These measures firmly established mediation as a viable alternative to litigation in the United States. China is now following a similar path by creating a robust legislative foundation to support the development of commercial mediation.

The Development of Commercial Mediation in China

Institutional Framework Evolution

For decades, commercial mediation in China operated in an uncertain legal environment, with fundamental aspects lacking clear regulatory guidance. A significant obstacle was the confusion between commercial and mediation, a community-based public service designed to promote social harmony. Unlike private, fee-based mediation, people’s mediation was not primarily treated as a commercial offering. As a result, uncertainty persisted over whether commercial mediators and mediation institutions could charge fees. Chinese courts took differing positions on that issue, slowing the adoption of mediation in some regions.

Unlike China, the U.S. has long recognized mediation as a professional service with mediators entitled to compensation. The New Regulations clearly establish commercial mediation as a distinct professional service where charging fees is appropriate.

Organizational Landscape

Commercial mediation organizations in China currently include:

• Non-enterprise private institutions operated by social organizations
• Institutional organizations established by chambers of commerce and industry associations
• Various business entities, including sole proprietorships and corporations

By late 2023, China had registered more than 200 private non-enterprise commercial mediation organizations, with over 300 additional organizations established between 2023 and 2024, reflecting rapid growth in the sector. Industry associations and chambers of commerce play a crucial role in resolving complex, high-value disputes due to their industry influence and expertise.

The China Council for the Promotion of International Trade (CCPIT) Mediation Center has become a leading international dispute resolution institution. New specialized institutions have emerged, including the International Commercial Mediation Center for the Belt and Road and the China-Arab Commercial Mediation Center. Pilot programs in Qianhai and Fujian report settlement rates approaching 60%, demonstrating mediation's effectiveness in resolving disputes when properly structured.

However, these organizations have yet to establish nationwide brands comparable to U.S. counterparts such as JAMS or the American Arbitration Association. Additionally, government-sponsored mediation in China has dominated the field, crowding out market-driven commercial providers. The New Regulations seek to nurture an environment where both government and market-driven mediation services can flourish side by side, enabling Chinese mediation organizations to potentially gain greater recognition in the global arena.

Core Elements of the New Regulations

Scope and Professional Focus

The New Regulations clearly define commercial mediation's scope—covering trade, , finance, transportation, real estate, construction, intellectual property and other commercial fields, while excluding non-commercial disputes such as marital, family and consumer matters. Currently, commercial mediation cases in China are primarily concentrated in the financial sector. The New Regulations aim to expand mediation across other commercial sectors.

Requirements for Mediators and Mediation Organizations

The New Regulations establish standards for mediators and mediation organizations. Mediators must possess professional qualifications, relevant professional titles and/or specific work experience.

Unlike the United States, where mediators typically complete a 40-hour training program for court-annexed mediation, the New Regulations provide provisions for mediator training only, with specific requirements expected to arrive as the practice develops. Currently, China lacks sufficient systematic training programs to prepare its growing number of mediators. In anticipation of the New Regulations, many overseas mediation companies have formed collaborations with Chinese mediation centers to provide comprehensive training programs to fill this gap.

Organizations must register with judicial administrative departments and maintain at least five qualified mediators. The New Regulations define commercial mediation organizations as nonprofit legal entities and establish a formal admission system. Operating without proper registration can result in fines ranging from approximately $14,000 to $70,000, plus confiscation of illegal earnings.

Unlike their U.S. counterparts, who command attorney-level fees and professional respect, Chinese mediators have historically received minimal compensation and recognition. The New Regulations' formal qualification requirements aim to elevate Chinese mediators' professional standing and compensation to internationally competitive levels.

Enhanced Agreement Enforcement

In China, voluntary compliance with mediation settlements is rare—in stark contrast to the United States, where parties typically honor such agreements without coercion. To address this challenge, the New Regulations establish an enforcement framework with three complementary pathways:

• A judicial confirmation process
• Integration with arbitration/mediation documents or decisions (such as converting a settlement into a )
• Conversion into notarized debt instruments

This multilayered approach elevates commercial mediation agreements to the same legal standing as court judgments or arbitration awards, effectively resolving the enforcement difficulties that previously undermined mediation's effectiveness.

International Rule Alignment

The New Regulations emphasize alignment with international standards to enhance the global competitiveness of China's commercial mediation organizations. As one of the original signatories to the Singapore Convention on Mediation, China is actively adopting international practices.

The CCPIT is currently exploring the creation of a co-mediation panel with JAMS for cross-border disputes, which would represent a milestone in China's integration with international practices and help promote Chinese mediation in global dispute resolution.

Party Autonomy

Parties can jointly select mediators from an organization's roster or request recommendations. The New Regulations also explicitly protect party autonomy by specifying that mediation cannot proceed if at any point one party refuses to continue. While this principle is fundamental in established mediation jurisdictions such as the United States, its explicit codification provides important clarity in China's emerging commercial mediation framework.

The approval of the New Regulations represents a historic moment for China's commercial dispute resolution system. By addressing challenges related to qualification standards, enforcement mechanisms and cross-border applicability, China has established a comprehensive framework for commercial mediation.

Following the U.S. model of promoting mediation through legislation, China now has a solid foundation for mediation to flourish. As the system matures, commercial mediation will play an increasingly vital role in creating a world-class, law-based business environment across China.

Robert B. Davidson, Esq., FCIArb is an arbitrator and mediator at JAMS and the executive director of the JAMS Arbitration Practice.

Mylene Chan, Senior Consultant, CCPIT Mediation Center Greater Bay Area