Three ways to resolve trade disputes

In the course of foreign trade, we will encounter various kinds of disputes. How can we resolve these trade disputes?

First, the mediation system: The advantage is that it can solve civil rights disputes in a timely and thorough manner, improve the efficiency of case handling, and reduce litigation costs. Mediation is also the most widely used court in China to handle civil litigation. The court mediation, also known as litigation mediation, is under the auspices of the judges of the court and the two parties reached an agreement through voluntary negotiation to resolve the civil disputes and settle the case. Court mediation has special judicial relief value. China's court mediation system adopts a mode of trial and reconciliation, that is, mediation and trial can be dynamically changed and operated interactively. A judge can actively decide to enter the mediation process at any time, and the same judge can also serve as a mediator and arbiter. The parties can repent before signing the mediation book. The meaning of mediation itself includes unclear facts and ambiguities in certain boundaries, mutual understanding and mutual accommodation, so as to achieve the purpose of resolving disputes without harming morale. The limitation of mediation is that, if it is not conducted under the auspices of the court or the arbitral tribunal, mediation does not have judicial coercive power.

Second, the arbitration system: refers to the parties to the civil dispute to reach an agreement, voluntarily submit the dispute to a selected third party to make a ruling in accordance with certain procedural rules and fair principles, and have the obligation to perform a legal system of the ruling. Arbitration is usually an industry-based non-governmental activity. It is a private activity, that is, private refereeing, rather than national refereeing. It is also listed as a means of resolving civil (business) disputes with reconciliation, mediation, and litigation. However, arbitration shall be supervised by the state according to law. The state may pass the court's jurisdiction over the validity of the arbitration agreement, the establishment of arbitration procedures, the enforcement of the arbitral award, and the involuntary execution of the case. Therefore, arbitration activities have a judicial nature and are an important part of the Chinese judicial system. Song believes that the advantage of the arbitration system lies in the fact that the procedure is simple and it only takes one decision to become effective; the evidence requirements are not so rigid. For example, if there is a reasonable logical chain for explanation, then the copy can also become evidence, which is in the proceedings. It is not allowed; the arbitrators are characterized by scholars, and the issues discussed are thorough, and the atmosphere of arbitration is relatively loose; the most obvious advantage of arbitration is also that in foreign-related arbitration, arbitral awards are generally applicable in all countries participating in international conventions. . The disadvantage of arbitration is that the procedural nature is not very strong, and there is a higher cost.

Third, litigation: refers to the state judicial organs in the case of the parties and other participants involved in the proceedings, based on facts, with the law as the yardstick, handling criminal, civil, administrative cases carried out by an activity. The merits of litigation are strong procedural, and the effectiveness of judgments is guaranteed by judicial means. The disadvantage is that the validity of the verdict is regional. If it involves foreign affairs, the verdict won't be valid in other countries. In this regard, it is inferior to arbitration.