The Regulation on Commercial Mediation (the “Regulation”) was adopted by the State Council Executive Meeting on 19 December 2025 and will take effect on 1 May 2026. It is China’s first administrative regulation dedicated exclusively to commercial mediation, marking a new stage of standardisation and rule-of-law development for the industry.
1. Filling a Critical Legislative Gap
As commercial activity in China continues to grow, the demand for diversified and specialised dispute resolution mechanisms has risen accordingly. Before this Regulation, commercial mediation operated on the basis of scattered general provisions and industry rules. The Regulation provides a systematic institutional framework, with the stated objectives of “standardising commercial mediation activity, promoting the healthy development of the industry, resolving commercial disputes efficiently and in a timely manner, protecting the lawful rights of parties, and optimising the business environment”.
2. Core Definitions and Principles
The Regulation defines, for the first time at the regulatory level, key concepts and operating standards:
- Scope of application: commercial mediation applies to disputes in trade, investment, finance, transport, real estate, construction, intellectual property and other commercial fields.
- Nature of mediation bodies: commercial mediation organisations are defined as non-profit legal persons established in accordance with law to conduct commercial mediation.
- Fundamental principles: commercial mediation must observe four cornerstone principles — voluntariness, legality, good faith, and confidentiality.
3. Regulating the Profession
The Regulation imposes clear gate-keeping standards on mediation organisations and mediators:
- Organisations: must register with the judicial administrative authorities and meet statutory conditions, including having no fewer than five qualified mediators. Internal rules of procedure, the mediator roster and the mediation rules must be made publicly available.
- Mediators: must possess relevant professional knowledge or experience, be of integrity, and undergo continuing professional training. Importantly, in designated regions, qualified professionals from Hong Kong, Macao or overseas may be appointed as mediators following filing with the authorities — providing strong institutional support for rule alignment in the Guangdong–Hong Kong–Macao Greater Bay Area and for foreign-related mediation services.
4. Procedure and Enforceability of Settlement Agreements
The Regulation respects party autonomy throughout: parties decide whether to mediate, who acts as mediator, and when to terminate. Mediation is non-public by default, with a recusal mechanism designed to create a safe, trusted negotiating environment.
For settlement agreements, the Regulation provides multiple enforcement avenues:
- judicial confirmation by the people’s court;
- issuance of an arbitral mediation document or arbitral award by a tribunal under an arbitration agreement;
- notarial deeds of enforceable creditor’s claims for agreements containing payment obligations.
5. International Openness
The Regulation expressly supports Chinese commercial mediation organisations in building international competitiveness and conducting foreign-related mediation. Qualified overseas mediation organisations are permitted to operate within the pilot free trade zones, Hainan Free Trade Port and other designated regions. Special support is given to the Greater Bay Area for rules alignment and mechanism convergence.
These provisions also lay the groundwork for China’s eventual ratification of the Singapore Convention on Mediation, by establishing the domestic legislative foundation that the Convention requires.
The Regulation represents a milestone for China’s commercial dispute resolution architecture — adding a third pillar alongside litigation and arbitration. For enterprises engaged in cross-border trade, foreign investment, and international project work, commercial mediation will increasingly serve as a fast, cost-effective and confidential channel for resolving disputes.