Judicial reform in China

3. Establishing Multiple Dispute Resolution Mechanisms

In response to the frequently occurring conflicts and disputes in a period of rapid social development, in 2010 the legislative organ of China promulgated the Law of the People's Republic of China on Mediation, and relevant department issued Several Opinions on Establishing and Improving Conflict and Dispute Resolution Mechanisms by Linking Litigation and Non-litigation Cases and Guidelines on Encouraging the Use of Mediation to Solve Conflicts and Disputes. They encourage the development and improvement of non-litigation dispute resolution mechanisms, thus establishing multiple dispute resolution mechanisms suited to the national conditions. Provisions such as mediation should be used first and mediation agreements shall be accepted by judicial organs are added to the Civil Procedure Law amended in 2012, reaffirming the achievements in judicial reforms.

Giving play to people's mediation. People's mediation is a Chinese way for resolving non-litigation disputes. China has established people's mediation committees in village (neighborhood) committees, townships or towns (urban districts), enterprises and public institutions, as well as industries and sectors with a high frequency of occurrence of disputes. By the end of 2011, China had 811,000 people's mediation organizations and 4.336 million mediators. In 2011, a total of 8.935 million conflicts were resolved through mediation, with a 96.9% resolution rate.

Giving play to administrative mediation. Out of the volition of the parties involved, an administrative organ may mediate administrative disputes under its jurisdiction and civil disputes relating to its functions and powers, enabling the parties concerned to reach agreement through consultation on an equal footing. Such mediation is conducive to the timely and reasonable settlement of disputes.

Giving play to judicial mediation. A people's court shall, according to its functions and powers or at the request of the involved parties, mediate civil cases lodged to it and resolve disputes under the presiding of a judge. In 2011, the people's courts in China mediated 2.665 million civil cases and had 1.746 million cases withdrawn by the parties after mediation. The people's procuratorates have established and improved a mechanism to link prosecution with mediation. With respect to a minor criminal case or a civil appeal that meets certain requirements, a people's procuratorate will ask a people's mediation organization to mediate first before it makes a decision in accordance with the law on the basis of the mediation result to jointly resolve the conflict or dispute.

Strengthening conflict or dispute resolution mechanisms by linking litigation and non-litigation cases. Highlighting the role of people's mediation organizations, social groups, lawyers, experts and arbitration agencies, China endeavors to establish a "large mediation" work system that integrates people's, administrative and judicial mediation, and improves coordination among the three in terms of procedure linkage, validity confirmation and legal guidance. As for non-litigation dispute resolution mechanisms like arbitration, the people's courts respect their own rules and provide support in such aspects as evidence and property preservation, and compulsory execution.

Improving litigation procedures for cases of public prosecution involving conciliation between the parties. For some minor crimes arising from civil disputes and for negligent crimes (excluding dereliction of duty) that may be given sentences of less than seven years, when criminal suspects or defendants repent of their crimes and obtain the forgiveness of the victims through such means as compensation for losses or apologies, and the victims wish to be reconciled with the perpetrators on a voluntary basis, both parties may be reconciled. For cases in which the parties concerned reach conciliation agreements, the people's procuratorate may recommend lenient penalties to the people's courts; and for minor crimes that do not entail criminal punishment, the people's procuratorate may issue non-litigation decisions. The people's courts may give a lenient penalty to defendants in accordance with the law.

4. Reducing Litigation Costs for Parties Concerned

China has expedited the reform and improvement of its litigation fee collection system. In 2006, China promulgated the Rules on Litigation Fee Payment, and the Methods for Management of Collection of Lawyer Service Fees. These measures markedly lowered the cost of litigants, thus mitigating the difficulty of lodging a lawsuit and hiring a lawyer, while guaranteeing normal judicial work and preventing abuse of litigation rights.

Lowering litigation charges. China has clarified the payment scope concerning litigation fees, with people's courts collecting only fees for case registration and application. China has sharply adjusted the threshold, percentage and standard of fees for cases involving property, divorce and labor disputes whose occurrence is fairly frequent, resulting in a great reduction in actual charges. Case registration fees are exempted for such cases as administrative compensation. For administrative cases, whether involving property or not, a fixed fee is collected.

Reducing and exempting litigation fees. When a party has difficulty paying a litigation fee it may apply to a people's court for judicial assistance. The state makes clear the circumstances, procedures and percentages for exemption, reduction and deferment of litigation fees, ensuring that parties with economic difficulties are able to fully exercise their litigation rights in accordance with the law.

Regulating lawyers' charges. While expanding the scope of lawyers' charges to market-adjusted prices, China continues to implement government-guided prices for service fees collected by lawyers when they act as representatives in state compensation cases and other law-suits, and rigorously standardizes the links and procedures for lawyers' charges. This effectively guarantees litigants' lawful rights and interests, as well as the state's interests while promoting the healthy development of the law profession.

Facilitating litigation. Judicial organs have generally established litigation service centers, and case registration and reception centers, and initiated and improved such systems as first inquiry responsibility, service commitment, open work and polite reception. They have improved such services as litigation guidance, search and inquiry, mediation prior to litigation, and meeting with people who report offences. They provide a suitable litigation environment for the public by opening hotlines and making use of information technology to provide online services such as case registration, serving a document, court sessions and inquiries.