Less than 2 per cent of financial disputes occurring in Guangzhou each year are solved through the city's arbitration forum, which has been in operation for eight years.

The Municipal Arbitration Committee receives no more than 2,000 cases a year, in contrast with the more than 100,000 financial dispute lawsuits filed at local courts, reports New Express News.

A 1:5 ratio between arbitrated and court-tried cases is more rational, said Chen Zhongqian, director of the committee.

Arbitration can be completed within days, while a court trial takes months, at best, and another several months in cases of appeal. But most clients opt for litigation because they are unfamiliar with the arbitration concept, said lawyers.

On the other hand, Guangzhou's arbitration committee is still connected to the government rather than an independent organization, which weakens its credibility, a congress deputy pointed out.

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