ABSTRACT

China's Great Legal Firewall: Extraterritoriality of Chinese Firms in the United States   [open pdf - 571KB]

From the abstract: "Chinese businesses participating in the U.S. financial services sector can effectively operate behind a firewall that keeps them largely immune from the jurisdiction of U.S. courts and regulatory agencies, leaving U.S. partners, competitors, and investors vulnerable. Multiple examples already exist of China-based banks and financial services firms using a complex multinational corporate structure of their own design and the shroud of Chinese law, including official secrecy laws, to remove themselves from U.S. legal and regulatory jurisdiction. Although the Hague Service and Evidence Conventions provide the legal framework for serving papers and obtaining evidence in legal disputes between U.S.- and China-based entities, China's interpretation of its obligations under these conventions differs from that of the United States and has resulted in many service of process and discovery requests being denied or significantly delayed. As such, pursuing legal recourse through the Hague Conventions is not a viable course of action for many U.S. plaintiffs. Greater legal protections for U.S. entities, including requiring Chinese firms in the United States to assign a domestic agent to receive legal papers such as subpoenas and court notifications, are a possible solution to this dilemma of jurisdiction."

Author:
Publisher:
Date:
2015-05-05
Copyright:
Public Domain
Retrieved From:
U.S.-China Economic and Security Review Commission: http://www.uscc.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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