Article by Ashley M. Howlett and Ruby S.K. Chan
One of the most sensitive issues for foreign companies operating in China at the moment concerns dispute resolution. Several western commentators have recently highlighted the vagaries involved in resolving disputes in China. Questions have been asked about the standard of judges in China and their impartiality. This was debated at length during last year's National People’s Conference in Beijing, and Supreme Court President Xiao Yang said in his report to the NPC that legal qualifications would be part of retraining programmes over the next five years to tie in with WTO requirements.
In line with the reform of China’s legal system, various forms of mediation and alternative dispute resolution are gaining in popularity and credibility in China. In fact, mediation has been a popular method of resolving disputes in China for centuries. Most mediation in China is conducted by People’s Mediation Commissions, which are mediation bodies