It can happen that sometimes you have a personal dispute with a family member, friend or neighbour, or a legal dispute involving business. There are three main ways as alternatives to going to court to resolve a dispute in China: negotiation, mediation and arbitration, they are ADR. ADR means “Alternative Dispute Resolution” and it refers to various processes, commonly used in civil law tradition, which have in common the aim of a better communication between the parties during a dispute and the saving in managerial and legal time, expense and worry (Bevan, 1992).
We can clearly distinguish the advantages of the ADR, comparing to the formal dispute settlement at court. ADR processes are quicker, as they can be arranged within days or weeks rather than months or years (example of one case in litigation). They are also less expensive, as earlier settlements save managerial time and they are confidential. They are voluntary, which means that the parties are free to walk out every time without interfering the legal procedures and their rights (Bevan, 1992).
Mediation, one of the most used ADR, involves a neutral third party, called a mediator, to help the disputing parties to reach an agreement. Mediation in China has been existed in China for more than 2,000 years. It was used in the Western Zhou Dynasty (1146 BC-771 BC) and then used during the Qin Dynasty (221 BC-207 BC). There was always a preference for mediation throughout all the history of Imperial China. The mediation system and the legal system were developed together after the establishment of the People 's Republic of China in 1949.
People 's Mediation Committees appeared during this period, helping local people to resolve civil disputes and to preserve harmony in the society.
However, the Mao 's economic reforms have brought some physical and social changes of the Chinese cities. Reforms have promoted the development of the legal system and other formal legal institutions. They have
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