BUSINESS

Chinese Companies Face Rising Cross-Border Litigation Risks

Published: Oct. 29, 2026 6:45 p.m. GMT+8

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Chinese companies expanding globally are facing a surge in complex cross-border litigations driven by rising geopolitical tensions and trade secret disputes, according to a report by U.S. law firm Quinn Emanuel Urquhart & Sullivan.

The trend underscores how geopolitical factors, such as U.S. government sanctions and technology restrictions, are increasingly intersecting with corporate legal battles, pushing Chinese businesses to aggressively defend their interests in foreign jurisdictions.

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Chinese firms face rising cross-border litigation from geopolitical tensions and trade secret disputes, e.g., Alibaba's securities lawsuit and DJI's court challenge.
Firms are more proactive in defending rights globally, shifting legal service demand toward Chinese companies' needs.
Trade secret and sanctions risks grow; China's Anti-Foreign Sanctions Law enables lawsuits, while document management remains a key challenge.

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Who’s Who

Quinn Emanuel Urquhart & Sullivan: Quinn Emanuel Urquhart & Sullivan is a U.S. law firm whose China branch now primarily serves Chinese companies globally, handling cross-border disputes. Partners Liu Xiao and Tang Haiyan note rising geopolitical friction, trade secret risks, and sanctions-related litigation. The firm's report highlights Chinese firms' proactive legal defense amid U.S. restrictions.

Alibaba Group Holding Ltd.: Alibaba Group Holding Ltd. faced a U.S. securities class-action lawsuit in August 2026. The plaintiff accused it of misleading investors about its AI-related activities and stock price risks after the U.S. Department of Defense added it to the Chinese military companies list.

SZ DJI Technology Co. Ltd.: SZ DJI Technology Co. Ltd., a Chinese drone maker, was added to the U.S. Defense Department's Chinese military companies list in October 2022. DJI filed a lawsuit in a U.S. federal court in October 2024, which was dismissed in September 2025. After DJI's appeal, an appellate court overturned parts of the ruling in August 2026, ordering a district court review. This case illustrates geopolitical friction in cross-border litigation.

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