Dispute Resolution By Mediation, Arbitration Or Litigation

In international trade, there may be disputes between the two sides in the process of performance.

The parties shall voluntarily submit the dispute to the selected mediation Agency (the court, the arbitration agency or the specialized mediation institution), and the mediation shall be mediated by the agency according to the mediation procedure.

If the mediation is successful, the two parties should sign a settlement agreement and execute it as a new contract. If the mediation opinion is not accepted by both parties or one party, the opinion will not be binding on the parties concerned, and mediation will fail.

China has adopted the procedure of first mediation in litigation and arbitration.

    B.仲裁（Arbitration）。

The two parties have reached a written agreement and voluntarily submit the dispute to the arbitration organizations agreed by both parties. The award made by the arbitration agency is final and binding on both parties.

The arbitration method has the advantages of short settling time, low cost, confidential for the parties, authoritative adjudication and convenient execution in other countries.

     C.诉讼（Litigation）。

If a party accuses a court of the other side of a contract, it usually requires the court to order the other party to be liable for breach of contract in the form of compensation for economic losses or payment of liquidated damages, and also requires the other party to perform its contractual obligations in real terms.

Litigation is a unilateral act of the parties. If the court accepts the case, the other party must respond.

However, the disadvantage of litigation is that the filing time is long and the cost of litigation is high. The judgments of foreign courts may not be fair.

　　综观上述三种解决争议的方式，在国际贸易实践中，仲裁是最被广泛采用的一种方式。