China signed a new convention on Friday establishing an international mediation body headquartered in Hong Kong, bringing together over 30 countries including Indonesia, Pakistan, Cuba, and Belarus. The initiative, backed by Beijing, aims to provide a formalized alternative to arbitration and litigation, marking a significant step in China's efforts to elevate its legal influence on the world stage.

The International Organization for Mediation (IOMed) is intended to serve as a structured, government-backed venue for resolving disputes through mediation. At the signing ceremony, Chinese Foreign Minister Wang Yi stated: "The establishment of the International Organization for Mediation helps to move beyond the zero-sum mindset of 'you lose and I win.'" He emphasized that the body reflects China's commitment to resolving international conflicts with "Chinese wisdom" and consensus-based dialogue.

The mediation group will operate out of a former police station in Hong Kong's Wan Chai district and is scheduled to open by late 2025 or early 2026. The body is promoted by Beijing as the world's first intergovernmental legal organization solely focused on mediation. Wang said the city's legal system, which combines common law and mainland Chinese law, gives it a unique advantage for hosting international legal institutions.

Hong Kong Chief Executive John Lee has said the organization aims to cement the city's status as a global center for resolving international disputes and compared its envisioned role to that of the International Court of Justice and the Permanent Court of Arbitration in The Hague.

Justice Secretary Paul Lam said the mediation body would help Hong Kong respond to challenges posed by what he called "hostile external forces" attempting to undermine the city's international standing. Authorities in Hong Kong have been working to revive its financial and legal reputation following the 2019 pro-democracy protests and the COVID-19 pandemic.

More than 50 countries and about 20 international organizations, including the United Nations, participated in the signing ceremony, according to Chinese state media and RTHK, Hong Kong's public broadcaster. The turnout signaled strong support from developing nations and reinforced China's diplomatic reach in the Global South.

Yueming Yan, a law professor at the Chinese University of Hong Kong, said: "While the ICJ and PCA focus on adjudication and arbitration, IOMed introduces a structured, institutionalized form of alternative dispute resolution - namely, mediation - on a global scale." She added that the initiative could eventually create "greater synergy" between formal legal mechanisms and more flexible dispute resolution methods.

Shahla Ali, a law professor at the University of Hong Kong, said the organization will be empowered to mediate disputes between states, between a state and a national of another state, or in international commercial disputes. She added: "Conventions can provide opportunities to experiment with new approaches," especially amid growing global interest in resolving investor-state disputes through mediation.

Still, skepticism remains among analysts over how much trust the body will garner in international circles. Alicia Garcia-Herrero, chief Asia-Pacific economist at Natixis, said: "Hong Kong has been offered as an alternative but I still think that borrowers, especially borrowers or anybody with a Belt and Road contract related or with a Chinese leg will feel less protected nowadays."

Despite those concerns, Hong Kong continues to rank high in legal reputation. A 2025 International Arbitration Survey conducted by Queen Mary University of London ranked Hong Kong jointly with Singapore as the second most preferred seat for arbitration, behind only London. The new mediation organization may further bolster that standing, depending on uptake and credibility among international users.