2009-09-07

Mutual Recognition by China and Taiwan of Court Judgments and Arbitration Awards

In 1998 Chinese authorities promulgated the Regulations of the High People’s Courts Regarding the People's Court’s Recognition of Taiwan Region Civil Judgments. This was the first legislation in China that clearly provided a legal basis for Chinese Courts to recognize judgments and arbitration awards rendered in Taiwan. In the same year, the Taizhou Intermediate People's Court in Zhejiang Province recognized, for the first time in history, the judgment of a Taiwan court, in that case, the Taiwan Nantou District Court.

In Taiwan, Article 74 of the Act Governing the Relations between the Peoples of the Taiwan Area and the Mainland Area states, "to the extent that an irrevocable civil ruling or judgment, or arbitral award rendered in Mainland China is not contrary to the public order or good morals in Taiwan, an application may be filed with a court for a ruling to recognize it.” In Taiwan, a party seeking enforcement of a final judgment rendered by a Chinese court needs only to file a petition, rather than a law suit, with a competent Taiwanese court for an approval of execution. The approval or disapproval will be in the form of court ruling and no trial proceedings or court hearings are required. However, if either party disputes the Taiwan court's ruling, they may appeal such ruling to a higher Taiwanese court for review. While there have since been several Taiwan judgments recognizing judgments of Chinese Courts and permitting the same to be enforced in Taiwan, only one arbitration award made in China was recognized by Taiwan Court since the Act was came into force in 1992.
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