This paper examines the online dispute resolution (ODR) mechanisms in China, with a particular focus on a new development: Internet courts. The paper questions the trend towards greater state intervention on ODR mechanisms, especially in the matter of regulation. China has applied a co-regulation approach toward the governance of solving online disputes, instead of allowing the use of self-regulation among e-commerce industry. A general overview of ODR mechanisms in China will be provided in the context of the recent establishment of an Internet court in China. This has implications on the development of exponential digital innovation in the Chinese judicial system.