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On December 31, 2025, China issued the Regulation on Commercial Mediation, effective May 1, 2026, marking a defining moment in the professionalization and legal recognition of commercial dispute resolution. As the country's first regulation specifically dedicated to commercial mediation, it establishes clear legal status, standardized procedures, and enforceable agreements, transforming mediation from a supplementary option into a recognized and reliable mechanism.

The regulation applies to disputes in trade, investment, finance, transportation, real estate, construction, and intellectual property, distinctly separating commercial mediation from labor or family disputes. It sets out rigorous standards for mediation organizations, mediator qualifications, procedural fairness, and confidentiality, while enabling judicial confirmation of mediation agreements, greatly enhancing their certainty and enforceability.

China's commercial mediation sector is rapidly expanding. The number of registered organizations grew from 223 in 2023 to over 900 by early 2026, reflecting surging demand and increasing professional maturity. Institutions such as the Shanghai Commercial Mediation Center have pioneered domestic and international mediation through forums, cross-border cooperation, and digital platforms, establishing benchmarks for efficiency, transparency, and professionalism.

The regulation also strengthens China's alignment with international standards, including the Singapore Convention on Mediation. It supports overseas offices, regional pilot programs, and cross-border enforcement, positioning China as an increasingly credible hub for international commercial dispute resolution.

Looking forward, three key trends are expected:

1. Professionalization – building a cadre of mediators with legal expertise, commercial insight, and practical dispute resolution skills.

2. Market-driven development – encouraging competitive, fee-based mediation services integrated with corporate compliance and risk management systems.

3. Internationalization – expanding cross-border capabilities and fostering mutual recognition of Chinese mediation practices abroad.

By codifying standards, enhancing efficiency, and embracing global norms, the regulation provides enterprises with a flexible, cost-effective, and reliable pathway to resolve disputes, strengthening China's business environment and laying the foundation for a modern, professional, and internationally respected commercial mediation ecosystem.