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What’s the difference between arbitration and mediation?
The difference between arbitration and mediation mainly lies in legal effect. An arbitral award shall be final and binding upon both the parties. If one party fails to perform the award, the other party may petition to a people’s court for enforcement in accordance with relevant provisions of the Arbitration Law and the Civil Procedure Law, in which case the people’s court accepting the petition shall enforce the award. While a mediation decision is not final, and if one party refuses to accept the mediation decision, the mediation decision will not take legal effect, which will affect the timely resolution of the dispute.
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