Alternate Dispute Resolution in China

Research on ADR for the Construction of Harmonious Arbitration System in China



By Huiru Wang

SKEMA Business School

Paris, France



China is in a period of social transition. The litigation cases encountered in the process of rule by law have exponentially increased. Problems such as excessive pressure on judicial resources and exorbitant judicial costs have the same background as the ADR system in the West. Therefore, China can try to cite this method to see that fit the purpose of the construction of harmonious arbitration system or not. This article mainly through Multi-Attribute Decision Analysis and Compensatory Decision Rules means to compare three feasible alternatives to resolve disputes in China. According to the final data, it shows that mediation is a more appropriate alternative. The ADR is in line with China’s national conditions. Also, the rapid development and achievement of ADR have also had a significant impact on China’s legal concept.

Key words: Alternate dispute resolution (ADR), Innovation research, Advantages,  Arbitration System, Development, Mediation, Litigation, Arbitration


The Alternate dispute resolution originated in the 1960s in the United States, because of the high cost and bureaucratic procedure, the parties and the lawyers realised that legal disputes through litigation became increasingly expensive, time-consuming and uncritical. At the same time, the courts were faced with “litigation explosion”, but also human and financial difficulties were unsustainable. People were looking for a simple, cheaper way to get the things done, so the ADR became a natural choice.

The ADR is a dispute resolution process and technique that allows the two parties in dispute to reach a consensus without litigation.  It’s a collective term that includes many ways in which both parties can settle disputes, with or without the help of a third party.

With the development of socio-economic globalisation, due to the differences in political, economic, cultural and legal systems in different countries, parties are increasingly turning to ADR for non-litigation proceedings in case of disputes, which made the ADR flourish in the 1970s. The success of the ADR was recognised and supported by the United States federal government in 1930.

The social benefits of ADR in the United States have led to the development of global ADR, as well as in China, who have so accepted this new method. ADR is an open and developing system that has high adaptability to the handling of new types of civil disputes. However, since China is different from Western capitalist countries and China is a socialist country, as we know, the different systems will produce various problems and different solutions, it’s important to see the arbitration system in China to go in this analysis.

To summarise, what this research has been designed to address are the following questions:

  1. Which dispute resolutions fit the purpose of ADR?
  2. Does this method accord with China’s harmonious arbitration system?


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Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director [email protected].

About the Author

Huiru Wang

SKEMA Business School
Paris, France


Huiru Wang
is an MSc student in SKEMA Business School, majoring in Project and Programme Management & Business Development (PPMBD). She graduated from Groupe Sup de Co La Rochelle Business School and holds a Bachelor’s high-quality diploma in commerce and management operations. She has attended four internships in different types of companies: Sephora in France, Rose Rouge in France, Dong Ya in Chine. She also has background knowledge about international business. She lives in Paris, France now, and can be contacted at [email protected]