Shanghai strengthens commercial mediation for cross-border business

Shanghai has introduced new rules to promote transparency, international cooperation, and digital services in commercial mediation, while strengthening coordination with other dispute-resolution mechanisms.

Effective Oct 1, commercial mediation organizations may charge reasonable fees at market-determined rates. They must publicly disclose fee items, standards, and charging methods, including case-registration and mediation-service fees, to give businesses clearer information on costs before entering mediation.

The rules also strengthen links between mediation and other dispute-resolution mechanisms. After reaching a mediation agreement, parties may apply to a court for judicial confirmation, request an arbitration institution to issue an award based on the agreement, or seek notarization that grants qualifying debt instruments compulsory enforceability. Mediation organizations are encouraged to assist with these procedures.

Internationalization is another focus. Shanghai will support the development of internationally influential commercial mediation organizations, encourage the development and refinement of mediation rules suited to China's conditions and compatible with international practices, and promote cooperation with international organizations and overseas legal-service institutions. Commercial mediation organizations are also encouraged to provide mediation services to Chinese companies operating abroad.

Shanghai-based mediation organizations may establish business offices or service outlets overseas, or cooperate with overseas dispute-resolution institutions through contractual partnerships and brand alliances.

The rules also seek to promote digital services. Mediation organizations are encouraged to offer online applications, remote mediation, and electronic signatures, and to use artificial intelligence, big data, and blockchain to improve efficiency. They must take necessary measures to ensure data security and protect the parties' personal information and trade secrets when using such systems.

The rules also support the development of professionals specializing in foreign-related commercial mediation and allow authorities in areas such as the China (Shanghai) Pilot Free Trade Zone (including the Lin-gang Special Area), Hongqiao International Central Business District, and Shanghai Eastern Hub International Business Cooperation Zone to introduce locally tailored measures to promote commercial mediation. The provisions remain effective through Sept 30, 2031.