Oriol Caudevilla says the city has a history of finding ways for different parties to coexist, cooperate and move forward together

In a world increasingly marked by geopolitical tensions, commercial disputes and economic fragmentation, the ability to resolve disagreements peacefully has become more important than ever. Amid this evolving landscape, Hong Kong Special Administrative Region is steadily positioning itself as one of the world's leading centers for mediation and international-dispute resolution.

This evolution reflects years of institutional development, legal expertise and strategic positioning. More importantly, it reflects a growing international demand for mechanisms capable of resolving disputes in a more efficient, flexible and cooperative way.

At first glance, mediation may sound like a highly technical legal topic, far removed from everyday life. In reality, it is deeply connected to the kind of world we want to live in. Businesses need mechanisms to solve disagreements. Countries need ways to manage disputes without escalation. Investors need confidence that conflicts can be resolved fairly and efficiently. In an increasingly fragmented global environment, these things matter more than ever.

From a Chinese cultural perspective, there is also something deeply familiar about this emphasis on harmony and dialogue. The idea that disputes should ideally be resolved through balance and consensus rather than pure confrontation has long existed within Chinese philosophy and governance traditions. HKSAR, because of its hybrid nature, is uniquely positioned to translate these ideas into an international legal and commercial context.

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Indeed, Chief Executive John Lee Ka-chiu said on Friday while addressing the city's inaugural Global Mediation Summit that Hong Kong, with its advantages under the "one country, two systems" principle, is committed and well-positioned to become a global mediation capital.

This follows the launch last year of the International Organization for Mediation (IOMed) in Hong Kong, the world's first intergovernmental legal organization dedicated to resolving international disputes through mediation, which organized the mediation summit at the Hong Kong Convention and Exhibition Centre. The IOMed's launch was a remarkable milestone, marking the first time an intergovernmental international organization has been headquartered in Hong Kong.

Traditionally, global dispute resolution has often been associated with lengthy litigation or expensive arbitration processes. Mediation, by contrast, seeks dialogue and consensus. It focuses not on winners and losers, but on finding workable and mutually acceptable outcomes. In an era where international relations and commercial ties are becoming more complex, this approach is increasingly attractive.

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The city already possesses many of the ingredients needed to become a global mediation hub. It has a highly respected legal system, internationally recognized professionals, strong rule of law traditions and extensive global connectivity. Under "one country, two systems", the city remains the country’s only common law jurisdiction, giving it a unique position between different legal traditions and business cultures.

Hong Kong was ranked 24th out of 143 countries and jurisdictions in the 2025 World Justice Project Rule of Law Index — the world's leading source for original, independent data on the rule of law.

The national 15th Five-Year Plan (2026-30) also signaled the central government’s support for the IOMed, striking a positive note on the city's role in the peaceful resolution of disputes through mediation

The national 15th Five-Year Plan (2026-30) also signaled the central government’s support for the IOMed, striking a positive note on the city's role in the peaceful resolution of disputes through mediation. The recently announced initiative to formulate Hong Kong's first comprehensive five-year development blueprint, aligned with that plan, places strong emphasis on high-value professional services, international connectivity and institutional development. Legal and mediation services fit naturally into this strategy.

From an economic perspective, Hong Kong is constantly demonstrating that it has the potential not only to maintain its role as one of the world's most important financial centers, but to enhance it, by leveraging its international standing, expertise in finance and related sectors, and its involvement in newer industries like artificial intelligence — all amid its growing participation in the Guangdong-Hong Kong-Macao Greater Bay Area and other key projects.

Hong Kong's future competitiveness will increasingly depend on areas where trust, expertise and international credibility matter. The city cannot compete purely on scale against much larger economies. What it can offer instead is quality, connectivity and institutional sophistication. In many ways, mediation reflects exactly those strengths.

It also reflects something more subtle about Hong Kong itself. Despite the political and economic debates surrounding the city in recent years, Hong Kong continues to demonstrate an ability to adapt. Its role evolves, but it does not disappear. Sometimes the city's resilience is underestimated because people tend to focus only on short-term headlines.

Becoming a true global mediation capital will require continued effort. Institutions need time to build reputation and international confidence. Talent development, legal education and global outreach will remain essential. But the foundations are already very strong. The successful launch of the IOMed, the hosting of the Global Mediation Summit, and the growing international participation in these initiatives suggest that Hong Kong is moving in the right direction.

Hong Kong has always been a place where different systems, cultures and perspectives meet. Mediation, at its core, is about precisely that: finding ways for different parties to coexist, cooperate and move forward together. That is why the city's emergence as a mediation hub feels not only strategically logical, but also culturally natural.

The author is a fintech adviser, a researcher and a former business analyst for a Hong Kong publicly listed company.

The views do not necessarily reflect those of China Daily.