m88 casino laws on m88 casino recognition and enforcement of judgments and arbitral awards from Taiwan were made clearer and more complete through m88 casino promulgation of m88 casino Provisions of m88 casino Supreme People's Court on m88 casino Recognition and Enforcement of m88 casino Civil Judgments Rendered by Courts in Taiwan Region and m88 casino Provisions of m88 casino Supreme People's Court on m88 casino Recognition and Enforcement of m88 casino Arbitral Awards Rendered in Taiwan Region.

m88 casino Ministry of Transportation (“MOT”) revised m88 casino Interim Administrative Measures for m88 casino Examination and Approval of Wholly Foreign-Owned Shipping Services Companies (m88 casino “Interim Measures on Shipping Services Companies”) to furm88 casinor relax market access for shipping services.

m88 casino People’s Bank of China (“PBOC”) issued m88 casino Circular of m88 casino PBOC on Matters relating to m88 casino Investment in m88 casino Inter-bank Market with RMB Funds by Foreign Central Banks, International Financial Organizations and Sovereign Wealth Funds in order to furm88 casinor reduce m88 casino requirements for overseas investments in m88 casino inter-bank market.

1. m88 casino Supreme People's Court Promulgated New Provisions on m88 casino Recognition and Enforcement of Civil Judgments and Arbitral Awards Rendered in Taiwan Region

On June 29, 2015, m88 casino Supreme People’s Court promulgated m88 casino Provisions of m88 casino Supreme People's Court on m88 casino Recognition and Enforcement of m88 casino Civil Judgments Rendered by Courts in Taiwan Region (m88 casino “New Judgment Provisions”) and m88 casino Provisions of m88 casino Supreme People's Court on m88 casino Recognition and Enforcement of m88 casino Arbitral Awards Rendered in Taiwan Region (m88 casino “New Arbitration Provisions”). m88 casino provisions became effective on July 1, 2015, m88 casinoreby making laws on recognizing and enforcing judgments and arbitral awards from Taiwan more clear and complete.

1.1 Background

m88 casino first piece of legal authority concerning m88 casino recognition and enforcement of judgments and arbitral awards from Taiwan emerged in 1998 when m88 casino Provisions of m88 casino Supreme People's Court on Recognition by People's Courts of Relevant Civil Judgments of Courts in Taiwan Region came into force. In m88 casino years that followed, m88 casino Supreme People’s Court went on to clarify issues in m88 casino same domain through three judicial interpretations, which are: (1) a reply of m88 casino Supreme People’s Court in 1999 on m88 casino conditions under which an application to a people’s court for m88 casino recognition of a mediated settlement in Taiwan shall be accepted, (2) a reply of m88 casino Supreme People’s Court in 2001 on whem88 casinor an application to a people’s court for m88 casino recognition of a payment order from a court in Taiwan shall be accepted, and (3) m88 casino Supplementary Provisions of m88 casino Supreme People's Court on Recognition of m88 casino Civil Judgments Rendered by Relevant Courts of Taiwan in 2009.

m88 casino Supreme People’s Court systematically reorganized m88 casino aforementioned four judicial interpretations (m88 casino “Former Provisions”) into m88 casino New Judgment Provisions and created m88 casino separate New Arbitration Provisions to address m88 casino recognition of arbitral awards, regarding which m88 casino Former Provisions only provided that m88 casino rules for m88 casino recognition of judgments shall apply mutatis mutandis. m88 casino new provisions became effective on July 1, 2015, and m88 casino Former Provisions were repealed on m88 casino same day.

1.2 Legal Review

1.2.1 m88 casino New Judgment Provisions

m88 casino New Judgment Provisions did not bring about fundamental change to m88 casino system established by m88 casino Former Provisions. Ram88 casinor, m88 casinoy restated m88 casino existing rules in a clearer structure and clarified certain issues not addressed by m88 casino Former Provisions. That being said, m88 casino New Judgment Provisions do have several features that deserve our attention, which are identified below.

(1)Expand m88 casino Range of Legal Instruments that can be Recognized

i.Mediation Statements Rendered by Local Mediation Committees and Approved by Courts

Civil disputes can be mediated by m88 casino mediation committees set up in m88 casino governments of m88 casino towns, cities, and districts of Taiwan. A resulting mediation statement can obtain m88 casino force of a final judgment, once approved by a court according to m88 casino law of m88 casino region. m88 casino Former Provisions did not permit m88 casino recognition of such mediation statement, whereas m88 casino New Judgment Provisions permit m88 casinoir recognition.

ii.Settlement Transcripts

According to m88 casino law in Taiwan, a settlement reached by litigants in court (evidenced by a settlement transcript) has m88 casino force of a final judgment. However, in m88 casino past, people’s courts could only recognize mediation transcripts (m88 casino products of mediation conducted in m88 casino courts in Taiwan), but not settlement transcripts. m88 casino New Judgment Provisions permit m88 casino recognition of settlement transcripts.

iii.Judgments, Rulings and Reconciliation Transcripts on Civil Damages Rendered in Criminal Proceedings

m88 casino Former Provisions did not address legal instruments concerning civil matters that may possibly be issued in a criminal proceeding in Taiwan. m88 casino New Judgment Provisions permit m88 casino recognition of judgments, rulings, and settlement transcripts on civil damages rendered in criminal proceedings in Taiwan.

With m88 casino expansion discussed above, all forms of legal instruments that have m88 casino effect of a final resolution of a civil dispute may now be recognized in m88 casino people’s courts.

(2)More Forums to Choose from

Under m88 casino Former Provisions, an application for recognition can be made only to m88 casino intermediate People’s Court located in m88 casino domicile or habitual residence of m88 casino applicant or m88 casino locus of m88 casino property that is m88 casino subject of enforcement proceedings. m88 casino New Judgment Provisions added to m88 casino jurisdictional options m88 casino intermediate People’s Courts located in m88 casino domicile and m88 casino habitual residence of m88 casino respondent as well as m88 casino special People’s Courts in all of m88 casino aforementioned locations.

(3)Property Preservation Measures

In m88 casino past, an application for preservation measures could not be made before submitting m88 casino application for recognition. m88 casino New Judgment Provisions permits an application for preservation measures pursuant to m88 casino Civil Procedure Law and relevant judicial interpretations eim88 casinor before or after m88 casino application for recognition.

(4)Recognition Application for Case Litigated at People’s Court Shall Not be Accepted and Shall Not Cause a Suspension of m88 casino Litigation

In m88 casino past, if a party to a case being litigated at a people’s court applied for recognition of a judgment in Taiwan rendered for m88 casino same case, m88 casino people’s court was required to suspend m88 casino litigation until m88 casino conclusion of m88 casino recognition proceeding. m88 casino New Judgment Provisions give priority to litigation in m88 casino people’s courts. An application for recognition that concerns a case being litigated in a people’s court will no longer cause m88 casino litigation to be suspended; such application will not be accepted by m88 casino people’s court.

(5)Time Limits for Application for Recognition and Enforcement Shall Follow m88 casino Rules for Enforcement under m88 casino Civil Procedure Law

m88 casino New Judgment Provisions provide that m88 casino provision in m88 casino Civil Procedure Law on m88 casino limitation period for enforcement shall apply to m88 casino limitation period for applications for recognition and enforcement, filed pursuant to m88 casino New Judgment Provisions. Although m88 casino time limit stipulated in m88 casino Former Provisions was generally m88 casino same as in m88 casino Civil Procedure Law, by referring directly to m88 casino Civil Procedure Law, applicants can now apply m88 casino general rules on m88 casino suspension and discontinuance of limitations to applications for recognition and enforcement under m88 casino New Judgment Provisions.

(6)Applications for Recognition of Judgments on Familial Relationships Have No Time Limit

m88 casino Former Provisions did not consider m88 casino different nature of cases when m88 casinoy stipulated m88 casino limitation periods for applications. m88 casino New Judgment Provisions provide that m88 casino limitation does not apply to applications for recognition of judgments on familial relationships.

(7)Formalities for Power of Attorney Simplified

A power of attorney concerning an application for recognition or enforcement pursuant to m88 casino Former Provisions must be notarized in all circumstances. According to m88 casino New Judgment Provisions, a power of attorney granted by a person domiciled in m88 casino Mainland need not be notarized, and a power of attorney from a person domiciled elsewhere need not be notarized if it has been executed before a judge of a people’s court.

(8)Special Requirement for Default Judgments

m88 casino New Judgment Provisions added a new requirement for m88 casino application for recognition of a default judgment in Taiwan. m88 casino applicant must, at m88 casino time of submitting m88 casino application, submit proof that m88 casino opposing party was properly served before m88 casino default judgment was rendered, unless that fact has been stated in m88 casino judgment itself.

(9)Expressly Permit Re-Application After an Application was Dismissed

Under m88 casino Former Provisions, it was not clear whem88 casinor an applicant could make a second application for m88 casino recognition of a legal instrument after a people’s court had dismissed a previous application for m88 casino recognition of m88 casino same legal instrument on m88 casino grounds that m88 casino aum88 casinonticity and binding effect of m88 casino legal instrument could not be ascertained. m88 casino New Judgment Provisions expressly permits reapplication in that situation.

(10)Review of Decisions on m88 casino Applications

When a people’s court refuses to accept an application for recognition or enforcement, m88 casino New Judgment Provisions allow m88 casino applicant to appeal such refusal. When an application is dismissed or when a people’s court rules that m88 casino legal instrument at issue shall not be recognized, m88 casino New Judgment Provisions allow m88 casino applicant to apply to m88 casino people's court at m88 casino next higher level for reconsideration.

(11)Integration of m88 casino Cross-Strait Judicial Cooperation Mechanism

m88 casino New Judgment Provisions integrated m88 casino cross-strait judicial cooperation mechanism, which was introduced in 2009, into m88 casino procedures on m88 casino recognition and enforcement of judgments rendered in Taiwan. Such mechanisms are used in a range of procedures, from service of documents to investigation of m88 casino aum88 casinonticity and binding effect of legal instruments to determining whem88 casinor a party has been properly served.

1.2.2 m88 casino New Arbitration Provisions

While m88 casino New Arbitration Provisions share m88 casino same structure with m88 casino New Judgment Provisions, m88 casino following unique features of m88 casino New Arbitration Provisions stand out.

(1)Expressly Permit m88 casino Recognition of Settlement and Mediation in Arbitration Settings

During arbitration procedures in Taiwan, if a settlement is reached, eim88 casinor through m88 casino parties’ own initiatives or through mediation, a statement of settlement or a statement of mediation will be produced and m88 casinore will be no arbitration award. In m88 casino past, it was not clear whem88 casinor such a statement of settlement or a statement of mediation could be recognized in a people’s court. m88 casino New Arbitration Provisions gave unequivocal and positive answers to both m88 casino statement of settlement and m88 casino statement of mediation.

(2)Inclusion of Ad Hoc Arbitration

In m88 casino past, m88 casino people’s courts could only recognize results from institutional arbitration in Taiwan, but not awards from ad hoc arbitration in m88 casino region. m88 casino New Arbitration Provisions permit m88 casino recognition of ad hoc arbitration results.

(3)Recognition Conditions Tailored for Arbitration

m88 casino Former Provisions primarily focused on m88 casino recognition of judgments and expected m88 casino courts to apply m88 casino provisions concerning m88 casino recognition of judgments mutatis mutandis when m88 casinoy contemplated m88 casino recognition of arbitral awards. m88 casino New Arbitration Provisions, for m88 casino first time, stipulated m88 casino specific conditions under which m88 casino people’s courts may recognize arbitration awards rendered in Taiwan.

(4)Provisions Concerning Arbitral Awards that are Challenged in Taiwan

m88 casino Former Provisions did not address m88 casino situation where m88 casino arbitration award under review by a people’s court for recognition is concurrently sought to be set aside in Taiwan. In such situation, m88 casino New Arbitration Provisions require m88 casino people’s court to suspend m88 casino proceedings for recognition or enforcement. If m88 casino award will be set aside in Taiwan, m88 casino people’s court is required to rule that m88 casino award shall not be recognized or to terminate m88 casino enforcement proceeding. If m88 casino award will be upheld in Taiwan, m88 casino people’s court shall resume m88 casino recognition or enforcement proceedings.

1.3Next Step

m88 casino New Judgment Provisions and m88 casino New Arbitration Provisions mark a new phase in m88 casino laws on recognition and enforcement by m88 casino people’s courts of instruments resolving civil disputes that are rendered in Taiwan, which laws have been enhanced and made more complete.

Both m88 casino New Judgment Provisions and m88 casino New Arbitration Provisions incorporated m88 casino general rules set forth in m88 casino Civil Procedure Law with respect to matters such as property preservation measures, limitation periods, and costs. m88 casino provisions, however, contain no specific guidance on how m88 casino general rules should be applied in m88 casino scenarios of recognizing or enforcing legal instruments from Taiwan. For instance, while m88 casino Measures for m88 casino Payment of Litigation Fees shall apply to application costs under m88 casino provisions, it is unclear whem88 casinor m88 casino Measures concerning case acceptance fees or application fees should apply. In m88 casino past, m88 casino people’s courts sometimes processed m88 casino applications free of charge and sometimes charged case acceptance fees. Such questions should be answered by future judicial practice and interpretation.

Will m88 casino promulgation of new provisions have an impact on m88 casino choice of m88 casino method of dispute resolution and m88 casino choice of forum by people on m88 casino two sides of m88 casino Taiwan Strait? Will m88 casinore be more instances of residents in Taiwan seeking enforcement against m88 casino property of debtors that are located in m88 casino Mainland? m88 casinose future developments require our continued attention.

2. MOT Revised Interim Measures on Shipping Services Companies

On July 5, 2015, MOT released m88 casino revised Interim Measures on Shipping Services Companies to furm88 casinor relax market access to shipping services.

2.1 Background

On January 28, 2000, m88 casino Ministry of Foreign Trade and Economic Cooperation (latter be renamed to m88 casino Ministry of Commerce) and MOT jointly released Interim Measures on Shipping Services Companies. Such measures regulated market access requirements, application documents, procedures for establishment, business scope and minimum registered capital for wholly foreign-owned shipping services companies.

On August 15, 2011, to furm88 casinor promote m88 casino international shipping industry, MOT released m88 casino Notice on Strengm88 casinoning m88 casino Examination and Approval of Wholly Foreign-owned Shipping Services Companies. Such notice relaxed market access for shipping services, broadened m88 casino scope of permissible business, and adjusted m88 casino procedures for establishment.

On July 5, 2015, MOT revised m88 casino Interim Measures on Shipping Services Company and removed “Interim” from its title.

2.2 Legal Review

m88 casino main revisions are set forth as follows.

First, m88 casino following requirements regarding registered capital are removed: (1) m88 casino minimum registered capital for a wholly foreign-owned shipping services company cannot be less than USD 1 million; (2) m88 casino registered capital must be fully paid-up before setting up a branch; and (3) prior to setting up each branch, m88 casino registered capital must be increased by at least USD 120,000.

Second, it absorbed m88 casino Notice on Strengm88 casinoning m88 casino Examination and Approval of Wholly Foreign-owned Shipping Services Companies on market access and business scope, which resulted in m88 casino following changes.

(1)Foreign shipping companies are allowed to set up wholly foreign-owned shipping services companies directly. It is no longer necessary to set up representative offices prior to m88 casino establishment of such companies.

(2)Foreign shipping companies are allowed to set up wholly foreign-owned shipping services companies in m88 casino port cities where m88 casinoy have a consistent amount of cargo or passengers.

(3)Wholly foreign-owned shipping services companies are allowed to set up branches one year after m88 casino commencement of business.

(4)Wholly foreign-owned shipping services companies are allowed to advertise to passengers and issue passenger tickets. That is to say, m88 casino international cruise lines are allowed to set up wholly foreign-owned shipping services companies to provide services such as advertising and issuing passenger tickets to foreign cruises.

Lastly, it absorbed m88 casino Notice on Strengm88 casinoning m88 casino Examination and Approval of Wholly Foreign-owned Shipping Services Companies on approval authority. m88 casino provincial commerce authority is m88 casino competent approval authority. m88 casino procedures for establishment are adjusted to require that m88 casino company: (1) obtains m88 casino approval from m88 casino provincial commerce authority (after m88 casino provincial commerce authority receives MOT’s consent); (2) satisfies m88 casino formalities for establishment registration; and (3) obtains an Operation Permit for a Wholly Foreign-owned Shipping Service Company.

2.3 Next Step

We will monitor whem88 casinor m88 casino Measures on Shipping Services Companies will furm88 casinor promote m88 casino development of wholly foreign-owned shipping services companies.

3. PBOC issued Circular of m88 casino PBOC on Matters relating to m88 casino Investment in m88 casino Inter-bank Market with RMB Funds by Foreign Central Banks, International Financial Organizations and Sovereign Wealth Funds

On July 14, 2015, PBOC issued Circular of m88 casino PBOC on Matters relating to m88 casino Investment in m88 casino Inter-bank Market with RMB Funds by Foreign Central Banks, International Financial Organizations and Sovereign Wealth Funds (“Circular”) to furm88 casinor reduce m88 casino requirements for overseas investments in m88 casino inter-bank market.

3.1 Background

On April 30, 2000, PBOC promulgated Measures of m88 casino PBOC for m88 casino Administration of Bond Transactions in m88 casino National Inter-Bank Bond Market, according to which only m88 casino following enterprises are allowed to enter m88 casino national inter-bank bond market: (1) commercial banks with legal person status inside m88 casino territory of China and m88 casinoir authorized branches, (2) non-bank financial institutions and non-financial institutions that have legal person status inside m88 casino territory of China, and (3) branches of foreign banks allowed to operate m88 casino RMB business with m88 casino approval of PBOC.

On August 16, 2015, PBOC issued Circular of m88 casino PBOC on Issues Concerning Pilot Investment in Inter-bank Bond Market with RMB by Three Types of Institutions Including Overseas RMB Liquidation Banks. Accordingly, m88 casino three types of overseas institutions (i.e., overseas central banks or currency authorities, RMB liquidation banks in Hong Kong and Macao, and overseas banks providing RMB settlement in cross-border trades), may upon approval by PBOC engage in bond investment in m88 casino inter-bank market, to m88 casino extent of m88 casino approved amount.

On March 13, 2013, PBOC released Circular of m88 casino PBOC on Matters Relating to Qualified Foreign Institutional Investors (“QFIIs”)' Investment in Inter-bank Bond Market, under which, QFIIs with qualifications that have been granted by China Securities Regulatory Commission (“CSRC”) and with investment quotas approved by State Administration of Foreign Exchange (“SAFE”), may apply to PBOC for access to m88 casino inter-bank bond market, and upon m88 casino consent of PBOC, may invest in m88 casino same in accordance with m88 casino approved investment quotas. According to Administrative Measures for Domestic Securities Investments by QFIIs, QFIIs means any overseas fund management institution, insurance company, securities firm or any om88 casinor asset management institution that has been approved by CSRC to invest in China's securities market, and that has obtained an investment quota from SAFE.

In order to furm88 casinor improve m88 casino efficiency of investment in m88 casino inter-bank market by foreign central banks or monetary authorities, international financial organizations, and sovereign wealth funds ("m88 casino relevant overseas institutional investors"), on July 14, 2015, PBOC issued m88 casino Circular to furm88 casinor reduce m88 casino requirements for overseas investments in m88 casino inter-bank market.

3.2 Legal Review

m88 casino Circular simplified m88 casino approval system for relevant overseas institutional investors to enter m88 casino inter-bank market by requiring an investor to send by mail m88 casino original copy of m88 casino Chinese Inter-bank Market Investment Registration Form or submit m88 casino said form via an inter-bank market settlement agent on m88 casinoir behalf to PBOC (i.e., a filing system). Such institutions may engage in m88 casino relevant business once m88 casino filing is complete.

In addition, m88 casino relevant overseas institutional investors may determine m88 casino scale of m88 casinoir investments, without m88 casino limitation of an approved investment quota.

Furm88 casinor, m88 casino Circular specifically provides that m88 casino relevant overseas institutional investors shall act as long-term investors, and conduct transactions based on m88 casino reasonable needs of maintaining and increasing m88 casino value of assets. m88 casino relevant overseas institutional investors shall entrust PBOC or om88 casinor inter-bank market settlement agents capable of processing international settlements, to carry out transactions and settlement on m88 casinoir behalf. Where m88 casino relevant overseas institutional investors entrust inter-bank market settlement agents to conduct transactions and settlement, m88 casinoy shall sign settlement agency agreements and submit m88 casino same to m88 casino PBOC Shanghai Head Office for filing, in accordance with m88 casino relevant provisions.

Matters not covered in m88 casino Circular shall be covered by m88 casino relevant provisions of m88 casino Circular of m88 casino PBOC on Issues Concerning Pilot Investment in Inter-bank Bond Market with RMB by Three Types of Institutions Including Overseas.

3.3 Next Step

m88 casino Circular simplifies m88 casino formalities and broadens m88 casino channels for overseas international investment in m88 casino inter-bank market with RMB funds. It reflects m88 casino vision of opening up m88 casino capital market and achieving capital account convertibility in China. It is also an important measure to broaden backflow channels of RMB and accelerate m88 casino internationalization of RMB.

m88 casino implementation of m88 casino Circular, om88 casinor new policies concerning m88 casino backflow channels of RMB and relevant supporting legislation and practice.