The Advantages and Disadvantages of Mediation in the Chinese Commercial Arbitration Process

Abstract

This paper reviews presents the advantages and disadvantages of mediation in Chinese commercial arbitration process to resolve disputes. Mediation can be considered as a principal means for resolution of commercial disputes, both domestically and internationally. Simply, to mediate means to act as a peacemaker between dispute parties. Basically, mediation is an informal mechanism in which the disputants are assisted by a neutral third party toward settlement. The mediators are appointed in a voluntary base to help disputants manage the resolution process. They should have no direct interest in the conflict and its outcome, and no power to render a decision, but just can control the process. Meanwhile, parties are entitled to accept or reject the outcome. Mediation shares the advantages of confidentiality, flexibility, and simplicity. Dispute of disadvantages still remaining, China's mediation system has century's history so far. Currently, China has used mediation method in arbitral proceedings so as to improve the efficiency of dispute resolution.