Overview of SCIA Negotiation Facilitation

According to the Ordinance on the Shenzhen Court of International Arbitration, the SCIA may resolve disputes through arbitration, mediation, negotiation facilitation, expert review, or by such other means that organically connects with arbitration as agreed upon or requested by the parties.

In 2016, building upon decades of successful experience in handling commercial disputes, particularly in resolving land and real estate disputes, the SCIA formally established the Shenzhen Court of International Arbitration Negotiation Facilitation Center (hereinafter referred to as the "SCIA Negotiation Facilitation Center"), dedicated to facilitating negotiation processes.

Negotiations involve interactions between two or more parties, encompassing all forms of negotiation, consultation, discussion, and mediation. During the negotiation facilitation process, experienced experts are selected as neutral parties to facilitate negotiations according to practical needs. These experts, as impartial individuals detached from vested interests, play various roles in the negotiation process to assist parties to achieve maximum mutual benefit.

The innovation of negotiation facilitation has attracted significant attention domestically and internationally, with the internationally renowned arbitration journal, Global Arbitration Review, dedicating a special feature titled Shenzhen launches rules to assist negotiation.

The SCIA Negotiation Facilitation Center can handle disputes or negotiation matters including, but not limited to: urban renewal and redevelopment activities, shantytown renovation, corporate governance, debt restructuring, intellectual property rights, international investment, international trade, and other related disputes or negotiation matters.

The SCIA Negotiation Facilitation Center employs outstanding professionals to form a pool of experts, establishes the Negotiation Facilitation Rules, and assists all parties involved in negotiations in a neutral, independent and authoritative manner. It helps all parties reach negotiation outcomes as quickly as possible and ensures that the negotiation results have legal enforceability. The center also encourages the parties to submit their negotiation results to the SCIA for arbitral awards.

In May 2023, the Center launched the revised Negotiation Facilitation Rules, dividing the negotiation facilitation fees into three parts including registration fees, administrative fees and remuneration for negotiation experts, which greatly enhance cost predictability for both Chinese and overseas parties. Additionally, overall fee standards have been reduced, with a cap imposed. Negotiation facilitation fees may be waived for the portion of the case where the amount in disputes is above $3 billion RMB, making costs more reasonable.

The SCIA Negotiation Facilitation Center applies a "negotiation facilitation +arbitration" coordination mechanism further streamlining the arbitration process. It also specifies that commercial disputes already undergoing arbitration or litigation procedures can be submitted for negotiation facilitation, widening the scope of alternative dispute resolution services.

Copyright © Shenzhen Court of International Arbitration.

All Rights Reserved.Presented by China Daily.

粤ICP备12073608号-1

SCIA President’s Mailbox

yzmailbox@scia.com.cn