A South African national in Guangdong owed Cai RMB 300,000 from a 2021 loan. Xiangyang's High-Tech Zone mediated online, with repayment of RMB 10,000 monthly from August 2026.
Tags:Source: OT-Team(G), 高新区平安办
A cross-regional civil dispute involving a South African national has been successfully resolved through online mediation in Xiangyang, Hubei Province, marking the first foreign-related private lending case concluded in the city's High-Tech Zone.
The dispute dates back to January 2021, when the plaintiff, identified as Cai, and the South African defendant were working together in Guangdong. The defendant borrowed a total of RMB 300,000 from Cai through bank transfers, WeChat and Alipay. By April 2026, the defendant had paid RMB 20,700 in interest, but none of the principal had been repaid.
The case presented two challenges: it involved both different regions and a foreign party. Cai is a permanent resident of Xiangyang, while the defendant has been living in Guangdong, making traditional litigation procedures more complicated and costly. After multiple unsuccessful attempts to negotiate a settlement, Cai applied for mediation through the High-Tech Zone's Comprehensive Governance Center.
After accepting the case, the center assigned a professional mediator to handle the dispute. The mediator reviewed the parties' transaction records, transfer receipts, chat history, the defendant's foreign passport and other evidence to establish the facts. The dispute was then handled through a combination of online mediation and separate communications with the two sides.
During the mediation, the mediator helped ease the plaintiff's concerns, explained the potential risks of litigation and encouraged both sides to make reasonable compromises. The mediator also explained relevant provisions of China's Civil Code to the foreign defendant, including the possible consequences of failing to repay the debt, such as property enforcement measures, restrictions on leaving China and penalties related to being listed as a dishonest debtor.
Taking the defendant's ability to repay into account, the mediator worked with both sides to revise the installment plan through several rounds of negotiations. In the end, the plaintiff voluntarily waived the interest and liquidated damages in exchange for full repayment of the principal.
The mediator then organized a video meeting between the two parties, explained the agreement clause by clause and provided translation assistance to the foreign defendant. The parties used an online smart mediation platform to sign the agreement electronically and applied for judicial confirmation.
Under the agreement, the defendant acknowledged an outstanding principal of RMB 300,000 and agreed to repay RMB 10,000 by the 25th of each month from August 2026 through June 2029. If any installment is overdue, the plaintiff may apply for compulsory enforcement of the entire remaining balance.
A follow-up review found that neither party had raised any objections to the agreement.
The case demonstrates how online mediation can help overcome geographical and cross-border barriers in foreign-related disputes while reducing the cost of seeking legal remedies and protecting the legitimate rights and interests of both Chinese and foreign parties.
The High-Tech Zone's Peace and Security Office said it will continue to improve its multi-channel dispute resolution mechanisms, strengthen its ability to handle cross-regional and foreign-related disputes, and apply the "Fengqiao Experience" in creating a more law-based business environment.
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