Shanghai has announced new arbitration rules for its pilot free trade zone, which is the first of its kind in China.

Included is an emergency arbitration court system and a way for resolving disputes over small amounts of money.

The regulation will come into effect next month.

It also allows disputers to seek emergency relief prior to the formation of a tribunal.

Traditionally, this kind of system has required parties to table all issues prior to arbitrators being appointed.

Wen Wanli is the Secretary General of the Council for the Promotion of International Trade.

"It is a system that has further improved on the combination of arbitration and mediation. Under the system, mediation will be carried out first to examine the demands that have been made by the concerned parties, before an arbitration panel is formed. This system is very international. An arbitrator who participates in mediation is not allowed to act as an arbitrator."

What's different about the Shanghai rules is that people can choose arbitrators from outside the panel of mediators.

Elsewhere, the selection of arbitrators is limited to the roster of an arbitration institution.

Another innovation is that companies involved in commercial disputes relating to less than 100 thousand yuan can apply for a summary procedure of arbitration, which means a lower service fee and an earlier date for the case to be heard.

For more on this, we're joined live now by Cao Can, CRI's Financial Commentator.

Cao Can, CRI's Financial Commentator.