Pudong Settles China's First Foreign-related Commercial Case through Individual Mediation

​A view of the Pudong International Legal Service Center in Pudong New Area, Shanghai. [Photo by Xu Cheng for Shanghai Observer]

China's first foreign-related commercial individual mediation case was successfully resolved at the Pudong International Legal Service Center on May 6, the first working day after the Regulations on Commercial Mediation came into effect.

This dispute involved overdue payment for goods under a sales contract. One party was a wholly foreign-owned enterprise registered in the China (Shanghai) Pilot Free Trade Zone, while the other was a company based in Guangdong province.

Professor Ding Wei served as the mediator, conducting the session through a combination of online and offline methods.

After thoroughly hearing both sides and clarifying the facts and legal relationships, the parties agreed on a payment plan for the outstanding amount.

The mediation concluded in just one hour, with the agreement taking effect immediately upon signing by both parties and the mediator.

The case represents a landmark step by Pudong New Area in translating the individual mediation system from legal provisions into practical application.

Individual, or independent, mediation is a confidential and voluntary process in which a neutral third party facilitates dialogue between disputing parties to help them reach a mutually acceptable resolution.

Unlike litigation, mediation is flexible and informal, and any settlement depends on the parties' agreement rather than a court-imposed decision.