Chinese Companies Nearly
Immune to US Lawsuits - AP J.Gold (Newark), E. Kurtenbach
“Individuals and companies often find it impossible to win
damages or other legal redress, especially for lawsuits filed overseas.
Current obstacles arise because the targets of lawsuits are often
companies that are partly owned by the Chinese government or army,
or are allied with provincial governors [G Hufbauer, Peterson Institute,
Chinese companies with no assets in the United States have no trouble
ignoring a U.S. court order. "There is no treaty between the
United States and China that requires the enforcement of each other's
judgments," [M. Lyle, Weil, Gotshal & Manges, DC]. China
is a signatory to an international accord known as the Hague Convention,
but does not accept all of the treaty's articles. The expansion
of Chinese companies into global markets, with offices and operations
in the U.S. and elsewhere, could give them greater an incentive
to cooperate in legal proceedings, Lyle said.
Note, however, that on the other hand corporate ethics experts
at one business school were amazed at Chinese executives willingness
to accept responsibility for the conduct of those below them –
to serve the greater interest of avoiding endless recriminations
and getting on with correcting the problem(s).