Apr 05, 2018 06:19 PM

Opinion: China’s Firms Could End Up Trapped Between U.S. Law, Beijing

Facing a $147 million claim in U.S. courts, two Chinese vitamin C manufacturers argued in a brief filed before the U.S. Supreme Court last week that they should not be punished for following an explicit directive from the Chinese Ministry of Commerce (MOFCOM). 

MOFCOM has also requested to participate in the oral argument in support of the Chinese companies, which would mark the first time in history that the Chinese government has appeared before the U.S. Supreme Court. In its request, MOFCOM reconfirmed that Chinese regulations compelled the actions of the Chinese manufacturers. For the other side, claimants argued — with support from the U.S. Department of Justice — that U.S. courts are not required to defer absolutely to the Chinese government’s interpretation of Chinese law or regulations. The court’s ruling — expected in June — is likely to have an enormous impact on the way Chinese companies make business decisions regarding U.S. markets. 

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