Hengqin announces China’s first commercial mediation regulations, effective January 2025

Photo: the Legal Affairs Bureau of the Guangdong-Macao In-depth Cooperation Zone in Hengqin

On December 16, 2024, the Guangdong-Macao In-depth Cooperation Zone in Hengqin unveiled the nation's first commercial mediation regulations, which will come into effect on January 1, 2025.

The regulations aim to address challenges in the development of commercial mediation,  and seek to improve the legal framework for commercial mediation, making it more adaptable to market needs.

As Hengqin's economy becomes increasingly internationalized, commercial mediation is emerging as an effective and low-cost dispute resolution method. Commercial mediation not only helps reduce the burden of lawsuits, saving time and costs, but also preserves the business relationships between parties. Furthermore, it offers a more flexible and internationally recognized solution for cross-border transactions, providing legal safeguards for cross-border cooperation between businesses.

Filling in the existing laws by clearly defining commercial mediation for the first time, the regulations also establish a more regulated approach to mediation organizations, with the Legal Affairs Bureau of Hengqin designated as the overseeing body. In line with international practices, the rules emphasize institutional mediation and require mediators to work within registered mediation organizations, thereby strengthening their management and training.

Furthermore, the regulations ensure the enforceability of commercial mediation agreements, offering legal pathways for parties to implement the terms of mediated agreements. The Legal Affairs Bureau is also taking steps to support the involvement of international mediators, including those from regions like Macao and Hong Kong, enhancing the credibility of the mediation process. To ensure mediators meet professional standards, the bureau is preparing a comprehensive training system that will include pre-employment and ongoing education programs.

(cnbayarea.org.cn & GDToday)