If the parties have already chosen the law applicable to the contract at the time of concluding the contract or after a dispute arises, the people's court shall take the law chosen by the parties as the basis for trying the case over the contract. The law chosen by the parties may be the law of the People's Republic of China, the law of Hong Kong and Macao or the law of a foreign country. However, the choice of the parties must be mutually agreed and expressed by both parties.

(1) Consultation

Settlement of contract disputes by the parties through consultation means that the parties to a contract dispute, on the basis of voluntary mutual understanding and in accordance with relevant national laws, policies and contracts, reach a settlement agreement by presenting facts and reasoning.

(2) Mediation

The mediation of contract disputes refers to the activities in which the parties voluntarily explain and persuade the parties in the dispute on the basis of finding out the facts and distinguishing right from wrong under the auspices of the third party (the mediator), so as to promote mutual understanding and compromise to reach a settlement agreement and solve the dispute.

(3) Arbitration

Contract arbitration means that a third party shall, in accordance with the arbitration clauses concluded in the contract or the arbitration agreement reached voluntarily by the two parties, arbitrate the contractual disputes in accordance with the provisions of law. Arbitration is a legal system of dispute settlement established by all countries in the modern world. Arbitration of dispute settlement is a common practice in business activities of all countries.