Today, Hong Kong enjoys a historic moment witnessed by Wang Yi, minister of foreign affairs of the People’s Republic of China, representatives from nearly 60 countries and over 20 international organizations, including the United Nations, for the signing ceremony of the Convention on the Establishment of the International Organization for Mediation (IOMed).
This event marks not only the birth of the world’s first intergovernmental legal organization dedicated to resolving international disputes through mediation but also a new chapter in the status escalation of Hong Kong in the international arena. As economic integration accelerates across Asia and beyond, the IOMed offers a visionary, timely, and uniquely suitable mechanism for safeguarding peaceful economic and trade relations, echoing the spirit of “harmony in diversity” that lies at the heart of the traditional wisdom in Chinese culture.
International mediation may reduce tensions
Traditionally, disputes arising from cross-border economic activities — especially e-commerce, investment, and services — have been addressed through litigation or arbitration. As these activities accelerate, so too does the likelihood of commercial, investment, and even state-to-state disputes. While these mechanisms have their merits, especially the huge contributions of the International Court of Justice and the International Court of Arbitration, they also reveal their limitations in the context of diversity and differences of stakeholders and parties from different countries with different cultures, legal systems, political systems, and religions.
Moreover, litigation is often adversarial, time-consuming, and public, which can strain or damage valuable economic relationships and may not fit some cases that need to be kept confidential. Arbitration, which is generally much more flexible and suitable for private proceedings, may still not provide room for communication and consideration of different cultures and legal systems. Mediation is voluntary and allows much more room for the mediator to discuss matters with the parties separately, leading to a very effective negotiation for a win-win result.
Timely response to a global need
The establishment of the IOMed is key for Hong Kong to deepen international exchanges and cooperation. It is a direct response to the pressing needs of a world subject to uncertainty of geopolitical tensions, as well as the environment for tax, trade, education, and cultural exchange. The IOMed is the first global treaty based body to settle international disputes through mediation. Experience around the world has shown that the rate of civil settlements achieved through mediation is very high, and users are mostly satisfied with the outcome of mediation. Mediation has many benefits, the most important of which is that it reduces tension, conflict, and risk between the two parties, and makes it easier to achieve reconciliation and to maintain a normal and friendly relationship in the future. In 2019, I participated in an international seminar on mediation experiences in different countries. Participants shared their experiences in their jurisdictions on how to facilitate the settlement of civil disputes through mediation. One speech in particular served as a wakeup call. It was delivered by a member of parliament from an Asian country who expressed her concern about the worsening of international relationships and suggested that “mediation shall not only be adopted within a nation, but also amongst nations”.
Her remarks reminded many participants that mediation should not be limited to home affairs but also extended to international disputes as an effective method of settling international disputes; that is, if signatory countries disagree on how to interpret or implement a treaty, the method of mediation can be used to coordinate the parties to the dispute in order to achieve the possibility of reconciliation, reduce the situation of international armed confrontation, and promote the opportunity for peace, which is ultimately for the benefit of human society.
Mediation, by its nature, is voluntary, confidential, and conducted by impartial, highly trained mediators. Unlike litigation and arbitration, mediation empowers the parties to shape their own solutions, often resulting in outcomes that both sides find acceptable and sustainable. This process preserves relationships, reduces hostility, and fosters an environment of cooperation.
Over the past two decades, we have ardently advocated for the development and adoption of alternative dispute resolution mechanisms, both within Hong Kong and on the international stage. I have the privilege to work alongside over 50 international experts, promoting the Belt and Road Cooperation and Partnership Model Agreement, and the Dispute Resolution Mechanism for the Belt and Road Initiative. The birth of these two publications reflects hard work and endless effort for mutual understanding of different systems, cultures, and laws. It also demonstrates that mediation is not only effective but also enjoys high satisfaction rates among users, with more than 33 countries translating it into their own language. This is especially true for disputes that cross boundaries of law, culture, and economic interest.
Hong Kong is the ideal host for the IOMed
Hong Kong’s selection as the IOMed’s permanent headquarters is both a recognition of its unique strengths and a vote of confidence in its future. Under the “one country, two systems” principle, Hong Kong maintains a common law legal system, a robust judiciary, and a deep pool of internationally minded legal professionals. Its role as a global financial center and a bridge between East and West positions it ideally to serve the needs of both common law and civil law jurisdictions.
As part of the Guangdong-Hong Kong-Macao Greater Bay Area, Hong Kong practices common law alongside Macao’s European civil law and the Chinese mainland’s civil law traditions, providing a microcosm of legal diversity in the region. This legal pluralism, combined with world-class bilingual legal talent and a business-friendly environment, makes Hong Kong a truly neutral ground for resolving cross-border disputes.
Moreover, the central government’s strong support for Hong Kong under the 14th Five-Year Plan (2021-25), and the city’s designation as an Asia-Pacific hub for international legal and dispute resolution services, further strengthens its position. The transformation of the historic former police station in Wan Chai into the IOMed’s headquarters symbolizes Hong Kong’s evolving role as a center for peace, justice, and international cooperation.
Filling critical gaps in the global dispute resolution architecture
The IOMed is a supplement for existing mechanisms like the ICJ, the World Trade Organization’s dispute settlement body, or other arbitral institutions, which are facing a challenge from the changing attitudes of the United States. Instead, the IOMed serves as a vital complement, filling critical gaps, especially for disputes that demand flexibility, speed, and sensitivity to cultural and commercial realities.
The IOMed is uniquely empowered to handle three primary types of disputes: state-to-state disputes, where mediation by a neutral third party can break political deadlocks; investor-state disputes, where mediation offers flexibility and autonomy often lacking in conventional arbitration; and international commercial disputes, where parties seek not only legal remedies but also preservation of long-term business relationships.
The IOMed’s roster of mediators, nominated by member states, reflects a commitment to broad representation, especially for developing countries whose voices have often been underrepresented in international dispute resolution. Its rules, drafted and agreed upon by member states, enshrine the principles of voluntariness, fairness, good faith, efficiency, and economy — ensuring that the IOMed’s proceedings are both principled and practical.
IOMed is a feather in Hong Kong’s cap
The global context for the IOMed’s birth is one of uncertainty and risk. In recent years, the rules-based international order has faced mounting challenges, including protectionism, unilateralism, and the erosion of trust in multilateral institutions.
Against this backdrop, the IOMed offers a new, forward-looking platform for peaceful dispute resolution — a reaffirmation of the principles enshrined in the UN Charter and international law. It upholds the international order, supports sustainable development, and provides stability in an era of flux.
The IOMed has historic potential. Its success depends on active participation from member states, especially those involved in the Belt and Road Initiative. This may help facilitate Hong Kong’s entry into Regional Comprehensive Economic Partnership. We have to advocate that Hong Kong can serve RCEP members better to enhance more win-win results for disputable parties across different countries. Collaborative engagement will ensure that the IOMed’s rules and practices evolve to meet the needs of a changing world. Regional initiatives, such as the Greater Bay Area’s integration of legal systems, provide valuable models for harmonizing laws, practices, and professional standards. The IOMed can serve as a catalyst for further legal cooperation and innovation. Beyond institutions and rules, the success of mediation depends on the willingness of parties to embrace dialogue, compromise, and mutual respect. Governments, businesses, and civil society must work together to promote a culture where mediation is seen as the first, not the last, resort.
Hong Kong, as the proud host of the IOMed, is honored to serve as a beacon of harmony and cooperation in the Asia-Pacific and beyond. Let us work together, guided by the enduring wisdom of our traditions, to realize the full promise of the IOMed for the region and for all the world’s inhabitants.
The author is a Legislative Council member of Hong Kong, barrister-at-law, and deputy to the National People’s Congress.
The views do not necessarily reflect those of China Daily.
