Zhang Wei

Director

Shanghai Commercial

Mediation Center

Descriptions of Working details3

External Cooperation and Communication4

Background and Significance of SCMC1

Characteristics of Commercial Mediation2

1.Background and Significance of SCMC

Since the opening of its commercial port, Shanghai has been a key city

blessed by well-developed economy and trade. As of the reform and

opening-up of China, Shanghai, as a leading city alongside the Yangtze

River, has gained a rapid growth in economy and trade in its construction

targeted at “four centers (i.e. economic center, trade center, financial center

and shipping center)”. What the rapid economic development has brought is

not only the construction and improvement of infrastructure and relevant

institutions relating to economy and trade but also the reinforcement of

social commercial concepts and sense of the rule of law. Under such a

background as above, Shanghai Commercial Mediation Center, as a new

exploration form of the commercial dispute resolution mechanism, emerges

in Shanghai at the right moment. As proved by real practices, the emergence

and sound operation of Shanghai Commercial Mediation Center and the

commercial mediation system represented by it are of profound significance.

（1）The commercial mediation system conforms to the development

trend of international commercial dispute resolution

• At present, such world-recognized international trade centers as New York,

London and Singapore have impeccable legal systems, normative economic

and trading behaviors and highly effective legalized operating environment in

addition to their geographic advantages and sound infrastructure. Inter alia,

such cities as above have the Alternative Dispute Resolution Method

(hereinafter referred to as ADR), a kind of independent, professional and non-

gratuitous commercial dispute resolution mechanism. As for international

trade centers, the commercial mediation ability to effectively and promptly

settle international trade disputes has become an indispensable part of them.

• With the construction of “four centers” in Shanghai marching forward,

more and more international commercial disputes have joined in the

commercial disputes in Shanghai. Learned from domestic and overseas

ADR commercial mediation experiences and practices of Shanghai

Commercial Mediation Center for over a year, the formation and

development of high-quality and professional mediation services shall be

inherently significant in the construction of “four centers” in Shanghai, in

particular the construction of Shanghai as an international trade center.

（2） The commercial mediation system satisfies the needs of the

construction of “four centers” in Shanghai

（3）The commercial mediation system can help relieve the pressure

of people’s courts in trial of commercial cases

• With the rapid growth of Shanghai economy, especially the on-going

construction of “four centers”, all levels of judicial organs in Shanghai will

come up with increasing pressure. Therefore, the establishment of the

Commercial Mediation Center enables parties to disputes access to

humanized legal services for commercial mediation or reconciliation in

addition to litigations and thus helps relieve the pressure of judicial

resources that are becoming increasingly tight in Shanghai.

2.Characteristics of Commercial Mediation

Efficiency

ConvenientEconomic

Flexible

Confidential

As is known to all, litigation, arbitration and mediation are general

approaches adopted by all nations in the world to resolution of

commercial disputes. Each approach has its own distinct features and

comparative advantages. In Shanghai Commercial Mediation Center,

commercial mediation practices of over a year indicate, as an approach

to resolution of commercial disputes, mediation is non-litigant, non-

antagonistic, procedurally flexible, economical and labor-saving, non-

offensive and is targeted at “dispute is settled upon conclusion of the

case”, hence mediation is more agreeable with the law and

characteristics of commercial disputes and is more acceptable to

merchants.

2.Characteristics of Commercial Mediation

• The first difference between mediation and litigation & arbitration is

that parties to disputes have the final say on whether the dispute is to be

settled or not, to what extent the dispute is to be settled and the speed at

which the dispute is to be settled, and what the mediator does is only to

give full play to the inner motivation of self-redemption of parties to

disputes in virtue of his/her own professional knowledge and skills on the

basis that the details of the case have been cleared, in order to maximize

the interests of parties to disputes.

• The second difference between mediation and litigation & arbitration is that

mediation follows the confidentiality principle, which is more advantageous

compared with litigation. The fundamental principle of “open trial” in judicial

trials followed by our nation considerably conflicts with the characteristics of

commercial disputes and hence is not feasible for parties to disputes to

achieve the win-win goal without outside interference. Moreover,

confidentiality is principle that shall be abided by commercial mediation

institutions and each mediator. Shanghai Commercial Mediation Center has

signed with each mediator a confidentiality agreement, the scope of which

includes the contents of disputes, details and processes of mediation, results

of mediation, etc. Mediation and resolution of commercial disputes under the

confidentiality agreement helps parties to disputes sufficiently negotiate with

each other without outside interference in order to realize the efficient

resolution of commercial disputes and the purpose of “dispute is settled upon

conclusion of the case”.

• The third difference between mediation and litigation & arbitration is that the

mediation attaches more importance to the mediator himself/herself. Surely,

mediation, litigation and arbitration all require highly qualified talents.

However, as for courts and arbitration institutions, their advantages more lie in

the team ability and institutional characteristics. Comparatively speaking,

without support from public power, mediators independently assume

mediation tasks when their personal charm, professional ability and moral

accomplishment are more valued. One of the reasons why Shanghai

Commercial Mediation Center is attracting more and more attention and is

recognized by parties to disputes is that the Center focuses on formation of an

“independent, impartial, professional and authoritative” mediation team. At

present, Shanghai Commercial Mediation Center has already been equipped

with a professional mediation team which plays a leading role in Shanghai and

even in the whole nation.

3.Descriptions of Working details

（1）Introduction of SCMC

Shanghai Commercial Mediation Center (SCMC) was

founded by Shanghai Services Federation, and approved

by both Shanghai Municipal Commission of Commerce

and Shanghai Bureau. Finally it was formally established

as the independent third party commercial mediation

mechanism on January 8 , 2011, and also as the first

organization specializing in trade and commercial

mediation.

The established ceremony of Shanghai Commercial

Mediation Center on January 8 , 2011.

Leadership for the Mediation

Center inaugurated.SCMC Signed Memorandum of Cooperation

with Hong Kong Mediation Council.

• SCMC owns a team which is composed of

experienced consultants. SCMC invites some

old leaders from Shanghai Municipal

People„s Congress,Shanghai Municipal

People‟s Government and Municipal CPPCC

to assume the consultant of SCMC for

Grasping the direction and offering advices.

• SCMC‟s team of mediation professionals not only

well understand Chinese culture, but also have in-

depth knowledge of domestic and foreign

commercial legal issues. The SCMC provides

domestic enterprises and foreign enterprises and

organizations in Shanghai with fast, efficient, cost-

effective and flexible services to reduce litigation

costs and time, and improve the overall efficiency of

dispute resolution.

lawyers

law professors

retired judges

professional

peoples

Composing TEXT

Our teams

Justness

Professional

Independent

Authority

Conditions

（2） SCMC service areas:：

Adhering to the principles of “friendly

settlement”, the SCMC assists Chinese and

foreign parties in dispute resolutions in such

areas as trade, investment, finance,

securities, intellectual property rights,

technology transfer, real estate, project

contracting, transportation and insurance in

a fair, independent and professional

manner.

Purpose①

Principles②

Support③

（3）Introduction of the work run

① Purpose of SCMC

Business is businessCooperation to achieve the win-win goal

Highly flexible principle

② Principles of SCMC

Full of autonomy principle

Full of confidentiality

principle

③ Support

Court

•SCMC signed a cooperation agreement with the

Shanghai Arbitration Committee,to establish the

convergence of mediation and arbitration

mechanism.Mediation success can be issued by

the Shanghai Arbitration Committee summary

arbitral awards,to enhance the implementation of

the mediation book.

•SCMC as the Municipal Commission of Comme

rce only accredited commercial mediation orga

nization,and the Higher Court litigation and med

iation mechanism of convergence of the mediat

ion agreement, the parties may apply to the Peo

ple's Court have jurisdiction to confirm its effec

tiveness.

Arbitration

On July 8,2011,the Shanghai Municipal Higher People's ,the Shanghai Municipal Commission of Commerce and Shanghai Service

Federation jointly held "the commercial disputes mediation forum".ZhiyYupeng,the president of Shang Service Federation.;Sha

hailin,Shanghai Municipal Government Deputy Secretary-General,the Director of the Shanghai Municipal Commission of

Commerce;Sheng yongqiang ,the Shang Municipal Higher People's court vice president attended the forum.At the meeting ,the

Municipal Higher People's court vice persident Sheng Yongqiang and business of Gu Jiahe of vice director of committee

representing the high court and is the Municipal Commission of Commerce signed the ".The Shanghai Municipal Higher People's

court "the Shanghai Municipal Commission of Commerce seminar conference summary".

The Shanghai Municipal Higher People's Court and the Municipal Commission of

Commerce signed the minutes of the meeting on the lawsuit and intermediation

► SHAC and SCMC signed the cooperation agreement

Qiang Xu, Director of the SHAC and

Xiaoding Zhao, Chairman of

Administrative Committee of the SCMC,

signed the “Cooperation Agreement ”.

Shanghai Arbitration Commission (“SHAC”) and

Shanghai Commercial Mediation Center (“SCMC”) held

a ceremony for signing a cooperation agreement at the

Shanghai Services Federation (“SSF”) on the morning

of April 28, 2011. Chairman of the SSF,Yupeng Zhou

was also present and delivered an important speech.

Director and Deputy Director of the SHAC Qiang Xu

and Xiong Fang, and the SCMC‟s Chairman of

Administrative Committee Xiaoding Zhao, Director Wei

Zhang, Deputy Director Haige Li, counsels Guoming

Shen and Xiaobao Miao, and mediator representatives

Hong Wu, Hongchao Zhu and Jiyu Yuan attended the

ceremony.

►SCMC is the Supreme People's Court Division changed to included in

the multivariate dispute resolution mechanism subject project pilot units.

4、External Cooperation and Communication

4.1 SCMC Signed a Memorandum

of Cooperation with Hong Kong

Mediation Council

4.2 Established Cooperative relations with Singapore Mediation Centre

Singapore Mediation Center reception staff:

• Executive Director of the Singapore Mediation Centre Loong Seng Onn

Deputy Executive Director of the Singapore Mediation Centre Sabiha Shiraz

SCMC &CEDR accomplished with cooperation agreement4.3

SCMC & AIA accomplished with cooperation agreement4.4

SCMC & SCAI accomplished with cooperation agreement4.5

4.6 SCMC Successfully Held the 1st Shanghai-Hong Kong

Commercial Mediation Forum in Shanghai

The 1st Shanghai-Hong Kong Commercial Mediation Forum jointly organized by Shanghai

Commercial Mediation Center, Hong Kong Mediation Council and Hong Kong International

Arbitration Center was held in Shanghai Xing Guo Hotel on March 3. Huiling Jiang, Deputy

Director of Judicial Reform Office of the Supreme People‟s Court attended this meeting and

delivered an opening speech. Yupeng Zhou, President of Shanghai Services Federation and

Honorary Chairman of Shanghai Commercial Mediation Center, and Tan Huiyi, Director of

Hong Kong Economic and Trade Office in Shanghai, also delivered speeches in the opening

ceremony.

Huiling Jiang, Deputy Director of Judicial

Reform Office of the Supreme People‟s

Court attended this meeting and

delivered an opening speech.

Tan Huiyi, Director of Hong Kong Economic

and Trade Office in Shanghai attended this

meeting and delivered speeches in the

opening ceremony.

As a high-end seminar for professional commercial mediation, this forum invited the

domestic and foreign authoritative experts, scholars and experienced speakers in

commercial mediation to attend and make speeches. The speakers in this forum include

the following 13 persons: Wei Zhang, Director of Shanghai Commercial Mediation

Centre; Hong Wu, Dean of Law School of East China University of Political Science and

Law; Bing Woon Chan, Chairman of Hong Kong Mediation Council and Joint Mediation

Helpline Office Ltd.; Hongchao Zhu, Head and Senior Partner of Shanghai United Law

Firm; Danny McFadden, Asia Pacific Managing Director of Centre for Effective Dispute

Resolution, UK; Xiong Fang, Deputy Director of Shanghai Arbitration Commission; Huen

Wong, Chairperson of Hong Kong International Arbitration Centre; B. TED. Howes,

Partner of McDermott Will & Emery LLP; Lester G. Huang, Chairman of the Mediation

Committee of the Law Society of Hong Kong; Zhangchao Pan, Secretary-General of

Shanghai Insurance Association; Nicholas Longley, Partner of Holman Fenwick Willan

LLP; Michael Palmer, Dean of Law School of Shantou University; and John Lee, Council

Member of Hong Kong Institute of Arbitrators. They successively delivered exciting

speeches centering around four themes, i.e., characteristics and demands of

commercial mediation, commercial mediation rules and the applications, connection

between commercial mediation and litigation / arbitration, and promotion of commercial

mediation ,mechanism.

• After the establishment of Shanghai Commercial Mediation

Center, concrete efforts have been made to reinforce its

foundation and give full play to its multiple functions. We

believe, the commercial mediation system will surely play its

key role and reflect its social value in creating a diversified

dispute resolution mechanism independent from litigation and

arbitration, exploring a road fit for the commercial mediation

development in China, improving the grand social mediation

system and building a harmonious society in China.

Conclusion:

Thanks !