December 31, 2025
The State Council of the People’s Republic of China has officially promulgated the Commercial Mediation Regulation (State Council Decree No. 827), marking the first comprehensive administrative regulation dedicated specifically to commercial mediation. The Regulation was adopted at the 75th Executive Meeting of the State Council on December 19, 2025, and will come into force on May 1, 2026.
1. Clear Legal Framework for Commercial Mediation
The Regulation formally defines commercial mediation as a voluntary, non-adversarial mechanism for resolving disputes in areas such as trade, investment, finance, transportation, real estate, construction, and intellectual property. Disputes involving family matters, labor, consumer rights, and other legally excluded areas fall outside its scope.
2. Licensing and Supervision of Mediation Institutions
Commercial mediation organizations must be established as non-profit entities and satisfy statutory requirements regarding capital, personnel, governance, and transparency. Judicial administrative authorities at both central and local levels are tasked with guidance, registration, and ongoing supervision.
3. Professional Standards for Mediators
The Regulation sets detailed qualification requirements for commercial mediators, covering legal professionals, former judges, experienced practitioners, and senior technical or economic experts. It also permits the engagement of qualified foreign mediators, supporting the internationalization of China’s dispute resolution services.
4. Legally Binding Mediation Agreements
Mediation agreements reached under the Regulation are legally binding. Parties may apply for judicial confirmation in accordance with the Civil Procedure Law, and cross-border enforcement may be pursued under applicable international treaties.
5. Integration with Litigation, Arbitration, and Technology
The Regulation strengthens coordination between mediation, litigation, arbitration, and notarization, ensuring smooth dispute resolution pathways. It explicitly encourages the use of online mediation, artificial intelligence, and data technologies to improve efficiency and accessibility.
6. Support for Cross-Border and Regional Development
The Regulation promotes overseas expansion by Chinese mediation institutions and allows foreign mediation organizations to operate in designated areas such as pilot free trade zones and the Hainan Free Trade Port. It also supports institutional coordination within the Guangdong–Hong Kong–Macao Greater Bay Area.
7. Compliance and Penalties
Clear administrative penalties are introduced for unauthorized operations, improper business practices, failure to disclose required information, and mediator misconduct, reinforcing regulatory certainty and industry discipline.
Existing mediation organizations must complete licensing and compliance procedures within one year from the Regulation’s effective date. Public-interest mediation conducted by industry associations and chambers of commerce remains outside the Regulation’s scope.
The Commercial Mediation Regulation represents a significant step in diversifying China’s commercial dispute resolution landscape. By enhancing credibility, enforceability, and international compatibility, the Regulation is expected to increase the attractiveness of mediation for both domestic and cross-border commercial disputes.
