How valuable is mediation as a nonlitigation dispute resolution option in China? The economic costs of litigation are generally high and consist of two aspects: direct costs (costs of rendering judgments) and error costs (costs of erroneous judgments). When comparing the lower cost of mediation to litigation, it actually refers to the direct costs of mediation. Direct costs are the costs of the operation of the legal system, including public and private costs. The construction of the judicial field is, to some extent, influenced by the comparative position between the parties and the adjudicators. The power relationship reflected by this comparative position is relatively stable and cannot be changed by the personal will of the parties or adjudicators. One of the reasons why parties choose arbitration/judicial mediation and submission is that they are in a position in the judicial field. Fundamentally, the types and quantities of capital that parties possess form the basis of their positions in the judicial field. At the same time, this position reinforces the capital condition that parties possess. With the development of competitive activities among actors in the judicial field, the capital condition that parties possess is constantly changing, driving changes in their positions in the judicial field. It can be seen that interest is both the preconsciousness of the game of mediation and the affirmation of the game and the strategies used in the game. In the judicial field, parties and judges maintain a state of illusion about the judicial field and constantly invest capital and generate new capital. What are the pros and cons of litigation v arbitration in China? Arbitration, as a dispute resolution mechanism, emphasizes the autonomy 32 LAWYER MONTHLY MAY 2024 Rongkuan Yang Beijing Kangda (H.K.) Law Firm About Rongkuan Yang Principal and Senior Partner Lawyer Mr. Yang Rongkuan, an adjunct Professor at the School of Laws, National University of Maryland (USA), a postdoctoral in Law from the National Academy of Governance (Governments Academy in USA), a practice mentor for Juris Master students at the Law School of Renmin University of China, a master’s research supervisor at the Law School of China University of Political Science and Law, a part-time Professor at Zhongnan University of Economics and Law, a master’s research supervisor at the School of Law of Capital University of Economics and Business, has a profound background in law, economics, and literature education. He also serves as a mediator for the China Council for the Promotion of International Trade / China Chamber of Commerce Mediation Center, a mediator for the Belt and Road International Commercial Mediation Cente, and an arbitrator for more than ten arbitration institutions, including the Ordos Arbitration Commission. He has published six major works, including Rationality of Commercial Law (Law Press·China, 2021, 1st Edition, ISBN: 978-7-5197-5435-8).
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