Foreign commercial mediation organizations can now set up operations in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone to provide mediation services, according to a new regulation adopted by the city.

The Regulation of Shanghai on Promoting Commercial Mediation in Pudong New Area was passed in the city’s legislature on Nov 28 and took effect on Dec 1.

Comprising 33 articles, it aims to streamline dispute resolution procedures and bolster the efficiency of commercial mediation in the Pudong New Area.

The regulation specifies the criteria for establishing mediation entities in Pudong, detailing applications requirements, designated reviews and approvals authorities and guidelines for information disclosures.

In line with international practices, it outlines the entire mediation process, including initiating a mediation, selecting mediators and their code of conduct. It also includes mediation methods, confidentiality obligations and requirements for disclosing and avoiding conflicts of interest.

Mediation agencies are authorized to charge reasonable fees, with rates determined by market mechanisms. They must publicly disclose their fee structures, including items, standards and payment methods.

Additionally, the regulation encourages commercial mediation organizations in Pudong to set up operations abroad to conduct mediation activities.

Source: Shanghai Municipal Bureau of Justice