(From the left) CAA Secretary-General Huan Lin, Honorary Chairman Fuldien Li, President of CAA Court of Arbitration K. C. Fan, Chairman Joe Y. C. Wu, Minister Chui-Cheng Chiu, Executive Director Yong-Ran Lee and Director-General Min-Jui Chou

CAA Chairman Joe Y.C. Wu, along with a six-member delegation visited the Mainland Affairs Council on October 15 to meet with Minister Chui-Cheng Chiu. During the meeting, they discussed the CAA initiatives to enhance exchanges between cross-strait arbitration institutions. Chairman Wu highlighted that since both sides lifted COVID-19 border restrictions last year, the CAA has been gradually resuming exchanges in line with government policies. Looking ahead, the CAA aims to expand its arbitration services in mainland China, encouraging Taiwanese businesses to select the CAA as their arbitration institution and to consider locations such as Xiamen as arbitration seats for resolving business disputes involving mainland or foreign parties. Minister Chiu applauded the CAA's efforts in fostering exchanges between cross-strait arbitration institutions, acknowledging that the arbitration mechanism can effectively address cross-strait trade and business disputes, thereby safeguarding the rights and interests of Taiwanese businesses.

Chairman Wu emphasized that arbitration is a globally accepted method for resolving disputes without resorting to litigation. Unlike public authorities, arbitration institutions operate independently, and their processes are non-political, allowing them to function across borders. The nationality of arbitration awards is not defined; instead, they are categorized as either domestic or foreign based on the location of their issuance, with enforcement requiring different legal approaches in court. For Taiwanese businesses in China, disputes frequently occur, especially regarding recent matters related to business dissolution. Given that most opponents are local governments or state-owned enterprises, Taiwanese firms often find themselves forced into local litigation, which has a high risk of unfavorable outcomes. Even when they do pursue arbitration, many mistakenly think they can only select arbitration institutions within China, putting them at a disadvantage due to the majority decision of Chinese arbitrators.  

Chairman Wu believed the primary issue is that the CAA has not set up a presence in areas where Taiwanese-funded enterprises are heavily concentrated overseas. This absence makes it challenging to promote and raise awareness about arbitration. Consequently, many Taiwanese businesses remain unaware that they can choose to submit their business disputes arising in China to the CAA for arbitration. Therefore, Chairman Wu suggested that the CAA should think about establishing offices in China and other overseas locations based on actual needs in the future, to offer arbitration or mediation services for Taiwanese businesses. Cases managed by the CAA could be arbitrated according to our arbitration rules in various cities in China, and such decisions would not need further approval from mainland courts. Instead, they could be directly submitted to the appropriate mainland jurisdictional courts for enforcement, which would more effectively safeguard the rights and interests of Taiwanese businesses.

Minister Chiu also expressed his support for the resumption of professional exchanges and cooperation in cross-strait arbitration. He commented on the CAA's plan to set up an office in China aimed at promoting arbitration and mediation services for cross-strait issues, stating that the Mainland Affairs Council views this as a positive move for safeguarding the rights and interests of Taiwanese businesses. Additionally, Minister Chiu pointed out that using economic and trade or legal zones in China to enhance arbitration services is not a political issue. It simply involves the use of office space and should not fall under the regulations of Article 33 of the Act Governing Relations between the People of Taiwan and the Mainland Area.