The recent establishment of the International Organization for Mediation (IOMed) in Hong Kong marks a historic milestone in the evolution of global dispute resolution. On May 30, 2025, representatives from 33 countries across Asia, Africa, Latin America, and Europe gathered in Hong Kong to sign the Convention on the Establishment of the IOMed. This monumental event also brought together senior officials from over 50 nations and nearly 20 international organizations, including the United Nations. The creation of the IOMed, headquartered in Hong Kong, represents a transformative step in promoting mediation as a cornerstone for peaceful dispute resolution across the globe.

Chinese Foreign Minister Wang Yi described the IOMed as a pioneering innovation in international law, rooted in the principles of the UN Charter. He emphasized the organization’s commitment to harmony and inclusiveness, key values that underpin its mission. The selection of Hong Kong as the IOMed headquarters further stresses its status as a global leader in legal services and dispute resolution. Chief Executive John Lee highlighted Hong Kong’s unique position as the only common law jurisdiction in China, strengthened by its robust legal infrastructure, world-class professionals and reputation as a preferred seat of arbitration in the Asia-Pacific region.

Mediation, as a practice, has risen to prominence in an increasingly interconnected world. Unlike litigation and arbitration, which are often adversarial and rigid, mediation offers a collaborative pathway to resolving disputes. It is cost-effective, flexible, and confidential, ensuring that sensitive information remains protected. These qualities make mediation particularly suited to complex disputes, whether between states, between states and private entities, or between private parties in international commerce.

For disputes between sovereign nations, mediation provides a neutral platform for dialogue and compromise. Political, territorial, or economic conflicts often require delicate handling, and adversarial processes like litigation can escalate tensions. Mediation, by contrast, fosters constructive engagement and enables nations to reach mutually acceptable solutions while preserving their relationships. This approach aligns with Article 33 of the UN Charter, which emphasizes peaceful dispute resolution through negotiation and mediation. By facilitating collaboration between states, mediation contributes to global stability and governance.

In disputes between states and foreign investors, mediation offers a practical and balanced solution. Traditional litigation or arbitration in such cases are usually expensive and adversarial, potentially straining diplomatic relations. Mediation allows for non-confrontational dialogue that addresses the concerns of both the state and private parties, fostering trust and ensuring fair outcomes. The IOMed’s specialized framework is designed to manage these disputes efficiently, strengthening international cooperation and preserving investor confidence.

For international commercial disputes, mediation provides a unique advantage by balancing efficiency with flexibility. Cross-border transactions often involve varying jurisdictions, cultural differences, and complex legal frameworks, making litigation or arbitration cumbersome and expensive. Mediation emphasizes collaboration and creative problem-solving, enabling businesses to preserve relationships while achieving tailored solutions. Its confidential nature ensures that sensitive commercial information remains protected, making mediation an ideal method for resolving disputes without public exposure.

In addition to its established strengths, the IOMed is uniquely positioned to apply advancements in technology to revolutionize mediation practices. Artificial intelligence (AI) and digital tools can significantly enhance the efficiency and precision of mediation processes. For instance, AI can analyze historical data to generate diverse dispute resolution options and assess their likelihood of success. This empowers disputing parties to make informed decisions based on data-driven insights. AI can also simulate potential judicial outcomes, enabling parties to evaluate their best alternatives to a negotiated agreement (BATNA) more effectively. Moreover, administrative tasks like scheduling meetings, drafting agreements, and managing documents can be streamlined through intelligent automation, allowing mediators to focus on core responsibilities. However, alongside these opportunities, the integration of technology into mediation also raises ethical considerations. Ensuring the transparency and fairness of AI algorithms is critical to maintaining trust in the mediation process. Mediators must also address privacy and data protection concerns, as sensitive information is increasingly stored and processed digitally. Furthermore, while technology can enhance efficiency, it should not replace the human empathy and judgment that are central to successful mediation.

The establishment of the IOMed marks a bold new chapter in international dispute resolution, with Hong Kong at its center. By combining its legal expertise with cutting-edge technology, the IOMed has the potential to set new standards for mediation practices worldwide. As nations increasingly turn to mediation to address complex global challenges, the IOMed will play a pivotal role in fostering peace, cooperation, and mutual respect. This initiative strengthens Hong Kong’s position as a global leader in legal innovation and brings the world closer to the vision of a harmonious and just international community.

By Dr. Bankee Kwan

Member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) and the Permanent Honorary President and Past President of Federation of Hong Kong-Shanghai Associations

Dr. Philip Wong

Member of Royal Institution of Chartered Surveyors (MRICS)

Fellow of the Chartered Institution of Highways and Transportation (FCIHT)

The views do not necessarily reflect those of Orange News.

Photo: Xinhua