Economic and Trade Disputes of Taiwan Businessmen Can Be Arbitrated in Taiwan. PRC Intends to Amend the Rules for Implementation of the Law on Protection of Investments by Taiwan Compatriots.

The Ministry of Commerce of the People’s Republic of China and the Taiwan Affairs Office of the State Council plan to amend the Rules for Implementation of the Law of the People’s Republic of China on Protection of Investments by Taiwan Compatriots in the near future, Taiwan businessmen can refer economic and trade disputes to arbitration institutions in Mainland, Taiwan, Hong Kong, and Macau or any arbitration institution consented by both parties.  For disputes not determined by arbitration, both parties can either initiate an action with the court of People’s Republic of China or with the court of Taiwan.

In the future, Taiwan businessmen can refer to arbitration institution such as the Arbitration Association of the Republic of China, the Engineering Arbitration Association of the Republic of China, Taiwan Construction Arbitration Association, and Taiwan Labor Disputes Arbitration Association for settling disputes; this will prevent Chinese local protectionism from impeding the arbitration.

In addition, for the Chinese government to collect Taiwan businessmen’s personal property or real estate, approval from higher-ranking level – people’s government at the provincial level is now necessary.  Compensations for expropriation will be awarded at the date of expropriation, whereas the amount is to be evaluated by the institution which is recommended by both parties.  (2009.07)
 /DC