Administrative mediation

Administrative mediation is a method used by state administrative organs to resolve civil and commercial disputes between equal subjects. In China, state administrative organs may, in accordance with the laws and administrative regulations, patiently persuade and educate the parties concerned in the civil and commercial disputes between equal parties within the jurisdiction of its authority and help the parties to form a mutual understanding and reach an agreement on the basis of equal consultation, so as to reasonably and thoroughly resolve the dispute and contradiction.

Similar to people’s mediation, administrative mediation, a mediation activity on a voluntary basis and belonging to the non-litigation mediation, is a convenient, cheap and efficient way to resolve civil and commercial disputes. According to Chinese law, although the agreement reached by the parties in civil and commercial disputes through people’s mediation or administrative mediation does not have the effect of compulsory execution, it still has binding effect on the parties.