ABSTRACT
By and large, disputes arising from doing business are civil disputes. In China, the predominant means for resolving civil disputes are mediation, arbitration, and litigation. Depending on the nature of a dispute, the disputants may resort to one, two, or even all of these mechanisms. For instance, when a dispute arises between joint venture partners, the disputants may first seek mediation, then request arbitration, and finally file a lawsuit. In fact, the same dispute-resolution institution may also try to resolve a dispute through more than one of these modes. For example, to resolve a dispute over the performance of a contract, the court may first undertake mediation and, if mediation fails, conduct adjudication. At times, businesses may disagree with government agencies on denial of licenses, imposition of fines, or dispensation of orders. To challenge administrative actions, complainants may either seek administrative reconsideration or file a lawsuit against the government in court. Accordingly, foreign investors should familiarize themselves with the basic means of resolving civil disputes and the avenues to contest administrative decisions.
