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The new Med-Arb Expedited Rules (expedited rules) on mediating dispute resolution have been recently launched by the Beijing Arbitration Commission/Beijing International Arbitration Court (BAC).

This initiative aims to establish a structured linkage between mediation and arbitration, shorten timelines for dispute resolution, and enhance the overall efficiency and effectiveness of dispute resolution.

The rules are a strategic step in fostering a law-based business environment and supporting high-quality economic and social development.

They continue the BAC¡¯s steady progress to becoming a world-class international arbitration institution and commitment to actively promoting diversified dispute resolution mechanisms.

Background

In 2008, the BAC introduced its first Mediation Rules, offering standalone mediation services to complement arbitration, aligned with national policies supporting diversified resolution paths.

Establishing the Beijing Arbitration Commission Mediation Centre in August 2011 marked another major milestone, enabling the independent handling of civil and commercial mediation cases.

Since 2013, the BAC has annually published the Annual Review on Commercial Mediation, highlighting key issues and trends. It also spearheaded the BAC Translations series, bringing important international mediation works to Chinese readers.

Notably, during the drafting of the Singapore Mediation Convention, several proposals by the BAC were adopted by UNCITRAL Working Group II.

In 2018, the BAC became one of the first five arbitration institutions included in the Supreme People¡¯s Court’s ¡°one-stop¡± service platform for resolving international commercial disputes.

With economic changes and increasing complexity in commercial activities, the number of arbitration cases has surged in recent years.

As at the end of 2024, the centre had accepted 260 mediation cases involving a total amount close to RMB6.3 billion (USD860 million), achieving a 55% success rate in resolved matters.

The BAC has responded by developing mechanisms for pre-arbitration mediation and dispute prevention, especially for cases involving natural persons, small-amount disputes, or straightforward legal issues.

In 2024 alone, the BAC successfully resolved 2,947 small-amount disputes before arbitration, and 2,730 disputes after case review but prior to formal acceptance, effectively saving the time and economic costs of the parties on dispute resolution.

New expedited rules

The BAC¡¯s continual research and practical experience in mediation have now led to development of the ¡°arbitration-mediation-arbitration¡± system to resolve disputes in a more economical, convenient and efficient manner.

The expedited rules are based on existing working practice giving full play to the core role of arbitration by providing parties an alternative customised, efficient and low-cost dispute resolution service deepening the linkage and connection between mediation and arbitration.

Highlights

Linkage between mediation and arbitration promoting reconciliation. Under the expedited rules, a reconciliation or mediation agreement reached by the parties before arbitration may be transformed into a legal instrument with compulsory force.

Where the agreement is unclear, the arbitral tribunal may carry out further mediation, give full play to the advantages of mediation in flexible dispute resolution and arbitration as the final binding judgment, realise the two-way interaction, and promote the rapid and proper settlement of disputes.

Reducing burden, significantly reducing costs. Special fee standards are supported, according to a significant reduction in the proportion of arbitration costs. Only 20% of the regular arbitration fees will be charged in cases where the amount in dispute is more than RMB1 billion, and the institutional fees will reach the upper limit when the amount in dispute reaches RMB3.96 billion.

Only 25% of the regular arbitration fees will be charged in cases where the amount in dispute is between RMB100 million and RMB1 billion (inclusive), reducing the cost burden of the parties. A good business environment is actively created.

¡°Speedup¡± ruling. As a special rule, an electronic service and online submission of materials will be fully promoted to achieve an entirely digital process. Fully respecting the individual needs of the parties, if they waive their limited rights, a ¡°speedup¡± of the arbitration proceedings may be achieved, with mediation documents or arbitral awards issued by the arbitral tribunals obtained within seven days, so as to truly achieve a fast-speed ruling for disputes.

Good faith dispute resolution. Arbitration participants are required to have good faith and to co-operate. Under certain conditions, the arbitral tribunal may refuse to issue a mediation document or an award to actively prevent the risk of false arbitration.

It is imperative to emphasise the enforceability of mediation contents and clarify that parties shall conscientiously perform their obligations. The BAC may send performance reminders on application, promote the effective connection of arbitration and enforcement, and significatly improve the effectiveness of dispute resolution.

Key takeaway

The expedited rules reflect a big step in modernising dispute resolution. By merging the flexibility of mediation with the enforceability of arbitration, the BAC offers a comprehensive and reliable system tailored to the needs of commercial parties.

This innovative approach not only provides more efficient options for resolving disputes but also sets a precedent for the development of a diversified, law-based dispute resolution mechanism in China.

This in turn contributes to fostering a stable, transparent and predictable business environment that supports high-quality economic growth.

Wang Ruihua is the chief of case filing division at Beijing Arbitration Commission/Beijing International Arbitration Court