IOMed: A timely innovation in global governance

City view of Hong Kong Special Administrative Region, south China, February 1, 2025. [Photo/Xinhua]

By Xu Ying

Wang Yi, a member of the Political Bureau of the Communist Party of China Central Committee and Chinese foreign minister, attended the signing ceremony of the Convention on the Establishment of the International Organization for Mediation (IOMed) in China's Hong Kong Special Administrative Region on May 30. This milestone is more than a ceremonial launch of a new international institution – it is a powerful symbol of a shifting global order, one that increasingly values pluralism, inclusiveness and peaceful dispute resolution over rigid orthodoxy or geopolitical dominance.

Born from extensive multilateral consultations, the IOMed is a treaty-based, intergovernmental organization created to fill a crucial gap in the global dispute resolution architecture. Its mandate is ambitious but timely: to provide friendly, flexible, low-cost and efficient mediation services for international disputes of all kinds – whether they involve states, enterprises, or transnational actors.

With over 60 countries and 20 international organizations participating in its founding, the IOMed is poised to become a cornerstone of a more balanced and cooperative global governance framework.

A necessary evolution in global dispute resolution

The emergence of the IOMed cannot be viewed in isolation from the broader transformations affecting global governance. For over half a century, the world's main dispute settlement bodies – most notably the World Trade Organization (WTO)'s dispute settlement mechanism and international investment arbitration forums – were shaped by the interests and legal traditions of a few dominant powers. But today, these mechanisms are visibly straining under the weight of new global realities.

The WTO's appellate body remains in paralysis. Investor-state arbitration has faced mounting criticism for lack of transparency, inconsistency in rulings and an imbalance that often disadvantages developing countries.

At a time when economic nationalism and unilateralism are resurging, a vacuum has formed in the rules-based system once heralded as the backbone of globalization. This is the space the IOMed seeks to occupy – not in confrontation, but as a complement, offering a new path rooted in consensus and cooperation.

Mediation, by its nature, offers what adversarial adjudication cannot: flexibility, informality and a human-centered approach that accommodates legal, political and cultural considerations. It allows disputants to preserve relationships, craft creative solutions and maintain dignity – all crucial qualities in today's multipolar world.

The IOMed's formation also coincides with the global rise in recognition of mediation's legitimacy, exemplified by the Singapore Convention on Mediation, which created a framework for the cross-border enforcement of mediated settlements. The IOMed will further institutionalize these gains by offering procedural reliability and enforceability – particularly through its innovative "mediation result registration system," which allows for streamlined domestic implementation in signatory states.

A platform for all, especially the often-overlooked

What sets the IOMed apart is its commitment to inclusivity and representation. At a time when developing countries continue to struggle for fair participation in rule-making processes dominated by traditional powers, the IOMed offers seats at the table – not as an afterthought, but as equal partners in shaping the legal frameworks of tomorrow.

By institutionalizing developing countries' voices in dispute resolution, the IOMed addresses one of the key criticisms of current mechanisms: that they are often inaccessible, expensive and tilted in favor of wealthier nations. This new court is explicitly designed to be different. Its procedures are accessible. Its emphasis on neutrality and non-coerciveness ensures fairness. And its establishment in Hong Kong – a city with a robust common law tradition, a world-class legal services ecosystem and deep ties to both East and West – offers practical advantages and symbolic strength.

Indeed, Hong Kong's role is no accident. The city has long been a global hub of finance, commerce and legal expertise. Its mature judiciary, multilingual professionals and extensive experience in cross-border mediation make it an ideal host for a global institution such as the IOMed.

More importantly, Hong Kong's hosting of the IOMed reaffirms the city's continued openness and relevance in international affairs. With the full support of the HKSAR government and the Chinese mainland's central authorities, the IOMed adds a new layer of legal sophistication to the city's already world-renowned rule of law credentials.

China's national flags and the Hong Kong Special Administrative Region (HKSAR) flags are hung above a street in Hong Kong, south China, June 20, 2022. [Photo/Xinhua]

Bridging East and West through dialogue

The IOMed also reflects a deeper cultural and philosophical current: the return of harmony-based conflict resolution principles long embedded in Eastern traditions. Rooted in the Confucian ideal of "harmony is precious," China's approach to international mediation emphasizes compromise, mutual respect and the pursuit of win-win outcomes. In an era of increasing polarization and zero-sum thinking, these values offer a much-needed antidote to confrontation and legal absolutism.

Crucially, the IOMed does not seek to replace or displace existing international institutions. Rather, it complements them – operating alongside the UN, WTO and other bodies, offering an alternative that is voluntary, respectful of sovereignty and attentive to the complex, often non-legal factors that shape modern disputes.

The UN's participation in the IOMed's inaugural events signals recognition of this complementary role. So too does the enthusiastic support from countries across Asia, Africa, Latin America and Europe, which see the IOMed as an embodiment of the UN Charter's foundational commitment to the peaceful settlement of disputes.

Addressing concerns with candor

It is natural that a new institution – particularly one born outside the traditional Western framework – will be met with skepticism in some quarters. Certain Western states, notably the United States, have expressed ambivalence or concern over the IOMed's creation and its location in Hong Kong. Their objections range from geopolitical anxiety to perceived threats to existing institutional power. Some fear that the IOMed will erode the dominance of arbitration centers under their influence or shift the gravitational center of legal diplomacy away from the familiar transatlantic axis.

But such concerns miss the broader point. The IOMed is not a tool of confrontation; it is a response to fragmentation. It does not seek to weaken international law, but to revitalize it – by making it more representative, more humane and more responsive to a changed world. As more nations seek to resolve disputes outside rigid and adversarial frameworks, the IOMed offers a credible, structured alternative.

A step toward a shared future

Ultimately, the establishment of the IOMed is a testament to the possibility of innovation within international law. It reflects the aspirations of a world in transition – one where legal infrastructure must evolve to accommodate diversity, where peaceful dialogue must triumph over dominance and where cooperation must prevail over competition.

For China, the IOMed is both a diplomatic initiative and a philosophical contribution to global governance – a concrete example of what it means to pursue a "community of shared future for mankind." For the world, it is a hopeful step toward a more balanced, fair and effective system for managing disputes. And for global leaders, it is a moment to recognize that peace, like justice, is not merely the absence of conflict – but the presence of mechanisms that foster understanding, inclusion and respect.

As the ink dries on the convention in Hong Kong, the world should not merely observe. It should engage, participate and support this meaningful experiment in multilateral cooperation.

Xu Ying, a special commentator on current affairs for CGTN, is a Beijing-based international affairs commentator.