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Article WSJ: Chinese Companies Court Disaster

An interesting article well worth a read in the Wall St Journal about Chinese companies who need to gain a greater understanding of the US legal system

Here's the introduction

Chinese investments and business dealings in the United States have a way of scaring up controversy among Americans, not least because the deep-pocketed, cheap-labored Chinese are seen as significant competitive threats to American companies. But in one arena, at least, it is becoming clear that Chinese companies face unexpected hurdles of their own when they go to the U.S.: the American legal system.

Anecdotal evidence at my firm and others suggests lawsuits in the U.S. against Chinese companies are increasing. Chinese companies face certain general disadvantages that will be hard for them to overcome anytime soon. For instance, many American jurors seem to reflect broader public unease about China as an economic threat, and are more likely to assume all of its companies engage in unscrupulous business tactics and produce shoddy products. And Chinese companies face the same problems that dog any company litigating outside its home country—unfamiliar rules and the like.

Full article at

http://online.wsj.com/article_email/SB10001424052748704554104575436523983011074-lMyQjAxMTAwMDMwMTEzNDEyWj.html

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