China-Taiwan Bilateral Investment Protection Agreement: dispute resolution mechanisms exclude international arbitration

On 9 August 2012, after two years of negotiation, Mainland Chinese and Taiwanese negotiators signed the Cross-strait Bilateral Investment Protection and Promotion Agreement (“IPA“).  The IPA is expected to promote cross-strait economic exchanges, and to attract more Mainland Chinese investors into Taiwan and vice-versa.  Given the sensitivity of cross-strait relations (China does not recognise Taiwan as an independent state), the IPA does not expressly incorporate international arbitration in the list of dispute resolution mechanisms available under the agreement – despite Taiwan having pressed for its inclusion. However, there are a number of other dispute resolution mechanisms, including mediation, available to investors under the IPA.

Please click here to read our post on our Arbitration blog.