Nobody hates lawyers more than the Taiwanese -- or so it would seem.
So when a commercial dispute arises between two parties, keeping the issue out of court is a priority -- especially when your counterpart is a mainlander.
That's where the Beijing arbitrators come in.
Taiwanese businesspeople in China may resort to the arbitration mechanism for solving business disputes in an efficient and cost-saving manner, visiting Beijing arbitrators said yesterday.
"[Arbitration] usually takes less than four months to reach a settlement," said Wang Hongsong (王紅松), secretary-general of the Beijing Arbitration Commission (BAC, 北京仲裁委員會), when paying a courtesy call yesterday to the Chinese National Industrial Federation (工總) in Taiwan.
She added that the mediation process might take eight months to reach a settlement if foreign business partners were involved.
Wang said that most Taiwanese businesspeople prefer to "pull strings" when solving disputes with their business partners. However, Wang warned as the rule of law gradually takes over in China, having connections in government may no longer be of use.
The arbitration mechanism works as an alternative to litigation, which typically takes years to reach a verdict. Businesspeople also prefer the closed-door nature of litigation which makes it easier to keep their commercial information private.
Highlighting further advantages of arbitration, Sunny Chang (張耿銘), one of only two Taiwanese lawyers appointed to the commission, said that litigants can close their argument at the first trial (一審終結) and are free to choose appointed arbitrators they trust to present their cases.
All parties are required to sign an agreement to accept the outcome prior to arbitration, Chang said yesterday.
The BAC was established in 1995 and comprises more than 200 arbitrators who are specialists in legal, economic and trade matters. The non-governmental organization takes 0.5 percent to 5 percent of the settlement.
The commission's Vice Chairman Zhou Jidong (周繼東) said that over 60 percent of its litigants successfully resolved their disputes and fulfilled their legal obligations in accordance with the final ruling in their cases.
Should any losing party fail to act on its settlement, local government and judicial officials could intervene upon request and court approval.
"Less than 1 percent of our cases failed," Zhou said yesterday, adding that only rulings reached by the highest courts in local governments could nullify the arbitration's ruling.
Commenting on China's arbitration system, one high-ranking Taiwanese cross-strait policymaker, who declined to be named, raised doubt over its effectiveness.
"Despite the fact that some Chinese arbitrators are well qualified, the consistency of their arbitration performance is questionable since their settlement is not backed up by the judicial system," he said.
He suggested Taiwanese look to foreign investors for direction. He said many multinationals include clauses in their contracts indicating that international arbitration mechanisms would be used should disputes arise.
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