Reciprocal enforcement in Hong Kong and Taiwan

Hong Kong has long been regarded as a reliable and convenient choice for both litigation and arbitration. Since August 1 2008, things have become theoretically easier for companies resolving disputes in the region. This is due to the passage of the Mainland Judgments (Reciprocal Enforcement) Ordinance in Hong Kong and a PRC judicial announcement bringing into effect the Arrangement on Reciprocal Enforcement of Judgments in Civil and Commercial Matters (which was signed by both governments in 2006).

The Arrangement provides for reciprocal enforcement of money judgments in both jurisdictions, as long as the parties have expressly agreed in writing to designate a mainland or a Hong Kong court to have exclusive jurisdiction for resolving any appropriate dispute; the new Arrangement resembles the New York Convention in many ways. (A similar structure was put into place to cover reciprocal enforcement of arbitral awards late in 1999.)