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Xiamen FTZ launches first foreign-related mediation and special arbitration case

LMS
ftz.xm.gov.cn|Updated: April 22, 2026

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The Maritime Silk Road Central Legal District FTZ Pilot Zone. [Photo provided to ftz.xm.gov.cn]

A foreign-related intellectual property (IP) dispute, resolved via "independent foreign-related commercial mediation plus special arbitration", had its mediation agreement confirmed by a special arbitral award in the Xiamen Free Trade Zone on April 16 — marking a substantial step forward in Xiamen's efforts to improve diversified dispute resolution and its one-stop system for foreign-related commercial disputes.

In this case, a European fashion brand (the claimant) and an online seller (the respondent) were involved in a trademark infringement dispute. At the foreign party's request, the mediation was handled under a pilot scheme where two mediators acted independently as individuals. Unlike traditional models, the resulting settlement agreement was signed only by the mediators, highlighting their independent role in the process.

China's State Council passed the Commercial Mediation Regulations in December 2025, allowing commercial mediators in pilot free trade zones to independently conduct foreign-related commercial mediation. The regulations will take effect on May 1, 2026. 

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The Maritime Silk Road Integrated Base for International Legal and Commercial Services. [Photo provided to ftz.xm.gov.cn]

Moreover, the parties agreed that any dispute arising from the mediation agreement would be finally resolved through special arbitration — establishing a clear procedural bridge from mediation to arbitration at the outset.

To ensure the mediation agreement would be enforceable, the parties agreed to apply the Maritime Silk Road Special Arbitration Rules. A sole special arbitrator heard the case, with the arbitration seated in Hong Kong and the hearing held in Xiamen. The Xiamen Maritime Silk Road International Arbitration Promotion Center served as the designated administrator of the special arbitration process.