The Supreme People’s Court of China last Tuesday issued new regulations on delivering civil bills of indictment regarding Taiwan residents. The interpretation took effect on April 23.

Both Taiwan and the mainland have been having difficulty in delivering litigation documents and according to the Xinhua News Agency, it is estimated that almost 80% of civil suits handled by mainland courts concerning Taiwanese do not reach relevant parties on the island.

“There was no formal reciprocal arrangement for service of judicial documents between the mainland and Taiwan. In the past, a court in China or Taiwan would request the Cross Strait Commercial Exchange Association to facilitate service. Because this depended on informal cooperation, only about one in five document overall ever being served,” said Darren FitzGerald, head of Asia dispute resolution at Bird & Bird.

Under the new interpretation, mainland courts no longer have to go through the Cross Strait Association for services, FitzGerald said. Duly authorized mainland lawyers can also accept service for Taiwanese parties.

“The main practical consequence is likely to be greater protection of business interests and more litigation across the Strait. Taiwanese businesses are already a significant source of investment on the mainland,” FitzGerald said, “With improving relations with China, and the prospect of fewer restrictions on Taiwanese investment, this is set to increase,” he added.