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Daniel Ren

ZHANG WEI, 61, a retired Shanghai district justice official, took the lead in establishing the Shanghai Commercial Mediation Centre, a first for China, in 2011.
She tells DANIEL REN how the power of mediation can be used to help settle business disputes in Shanghai and also foster integrity among Chinese entrepreneurs.

What role does your organisation play and what benefits can businesses reap from it?
Mediation centres have been around in China for a long time, but they mainly deal with civil cases, such as settling marital disputes and ignore the business side of things.
A mediation centre is run by a group of professionals who understand both business and the rule of law to help conflicting parties work out a win-win situation.
It’s not an easy job. We want to be a pioneer in this field. Besides, it will help Shanghai improve its business climate as companies and individuals will have an alternative to courts and arbitration commissions to protect their interests.
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What was its driving force?
You may be aware that I used to be a judicial bureau official. The idea of expanding the role of mediation to solve business disputes occurred to me only after I had retired.
I wanted to put my long years of experience and knowledge as a government official to good use for businesses. I felt that a non-government and non-profit organisation with expertise in law and business could create a more congenial commercial atmosphere in Shanghai, which has evolved into a world-class metropolis.
It will be a colossal waste of legal resources if all companies went to court to settle disputes about contracts and transactions.
What is the key to establishing a trusted centre?
We hope to improve business people’s awareness of market forces, credibility and social responsibility.
A mediator acts as a third-party specialist, who helps the parties involved grasp the gist of their negotiations.
In China, there’s a popular saying that spectators can see a chess game better than the players. A qualified and professional mediator can direct conversations to the crux of the debate.
As for myself, I would like to build a capable team of mediators. They are supposed to be not only experts in legal and business issues, but also be well trained as qualified mediators.
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Who are the mediators working for you now?
I have a team of 32 certified mediators who are either top-notch lawyers in Shanghai or experts in their own fields.
A mediator has to be a person of the highest integrity and an impeccable disposition.
I am proud of my team and looking to expand it.
We have successfully settled 170 cases dealing with about 1.9 billion yuan (HK$2.2 billion) of transactions in the past five years.
So far our success rate has been 70 per cent.
Does a centre like yours complement courts and arbitration commissions in China?
Yes, because we want to be a part of the larger legal system.
The leadership has been advocating a comprehensive and diversified mechanism to settle all disputes.
On the mainland, courts and arbitration commissions are deemed as government-controlled agencies, which might not come across as transparent and fair to foreign businesses. Our work is not hampered by any administrative intervention and that gives us an edge.
What kind of cases does your centre handle now?
We help to settle disputes in a very wide range of commercial fields, such as intellectual property rights, international commodities trade, loans,
leases, land deals and equity transfers.
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What’s your view on the ethics of Chinese business people?
Ethics and credibility must be further improved by private business establishments.
In the Western developed market, entrepreneurs are highly respected because most of them are not only good at running businesses, but are also aware of their social responsibilities.
Frankly speaking, many of the business people in Shanghai are only chasing profits, and some of these people lack a moral conscience.
What are the difficulties of running the centre?
There is a need for much greater awareness.
The mainland government and the business community should learn that mediation is a convenient and effective way of ironing out festering business issues.
We need to have government support as well. I hope the centre will be acknowledged as an important part of our legal system.
My ultimate goal is, of course, to help Shanghai improve its business environment.


Courting success: retired Chinese official sets up one-stop dispute resolution shop in Shanghai

Zhang Wei, chairwoman of the Shanghai Commercial Mediation Centre, says mediation can be used to help settle business disputes and foster a sense of integrity among Chinese entrepreneurs. Photo: SCMP Pictures

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