The primary ways to resolve disputes include litigation, arbitration, mediation and reconciliation. Administrative disputes with administrative organs can be settled through administrative reconsideration and administrative litigation, among others. Mediation is recommended in the process of litigation, administrative reconsideration and arbitration. China's court system consists of the Supreme People's Court of the People's Republic of China, local people's courts at various levels (including superior people's courts, intermediate people's courts, and basic people's courts), and specialized people's courts (military courts, maritime courts, intellectual property courts, financial courts, etc.).
Administrative reconsideration organs consist of governments at and above the county level and other administrative organs (including relevant departments under the State Council, customs departments, financial departments, foreign exchange administrations and other administrative organs, taxation departments, and national security organs) that perform administrative reconsideration duties in accordance with the Law of the People's Republic of China on Administrative Reconsideration (hereinafter referred to as the "Law"). The administrative reconsideration department of an administrative reconsideration organ is in charge of administrative reconsideration work. The Law shall be applicable to cases where citizens, legal persons or other organizations apply to administrative organs for administrative reconsideration when they consider that certain specific administrative acts infringe upon their lawful rights or interests, and where administrative organs accept the applications and make decisions after administrative reconsideration.
China has an international arbitration mechanism. It has set up 282 arbitration institutions with a team of over 50,000 arbitrators, including more than 2,000 Hong Kong, Macao, Taiwan and international arbitration experts. Beijing, Shanghai, Guangdong, and Hainan are committed to building international commercial arbitration centers. The China International Economic and Trade Arbitration Commission (CIETAC), China Maritime Arbitration Commission (CMAC), Beijing Arbitration Commission (BAC), Shanghai Arbitration Commission (SHAC) and Shenzhen Court of International Arbitration (SCIA) are world-renowned standing commercial arbitration bodies, well-known both nationally and internationally for their independence, impartiality, and efficiency.
Mediation mechanisms in China include people-to-people mediation, administrative mediation, judicial mediation, and professional industry mediation (including commercial mediation). Mediation organizations are seen in communities, key industries, and professional fields across urban and rural areas in China. Flexible, accessible, low cost, efficient, and confidential, they play an important role in resolving various civil and commercial disputes.
Source: Foreign Investment Guide of the People's Republic of China (2024 Edition) issued by the Ministry of Commerce