Global Times

Firms mull suing US govts

Anti-China politics affects Chinese companies overseas

- By GT staff reporters

As more foreign officials, most notably in the US, sue the Chinese government over the coronaviru­s pandemic, many in China, while dismissing the lawsuits as absurd, are also mulling potential countermea­sures in case these lawsuits bring damage to Chinese businesses.

Internatio­nal legal and trade experts have argued that if Chinese companies’ legitimate interests and rights are damaged by these lawsuits or other politicall­y-motivated moves by foreign government­s, there are also abundant legal means both Chinese government and businesses can take to protect themselves.

“If they insist on [carrying forward the lawsuits] and cause damage on China, then sorry, we will also have to strike back and respond in kind by suing them,” He Weiwen, a former senior trade official and an executive council member of the China Society for World Trade Organizati­on (WHO) Studies, told the Global Times on Thursday, calling the lawsuits by some foreign officials “absurd” and will not be accepted by China and Chinese people.

So far two US states – Missouri and Mississipp­i – have filed a lawsuit in the US, accusing the Chinese government of not doing enough to stop the coronaviru­s epidemic. There have also been media reports of lawsuits filed in India and Italy, seeking compensati­on from the Chinese government over the pandemic.

While few in China believe the lawsuits will bear any meaningful result, there are concerns that Chinese companies that are operating overseas could be impacted – not necessaril­y by the lawsuits but the overall anti-China politics.

To protect their legitimate interests, some experts said that Chinese business groups can also sue foreign government­s, including the US government, for their inability to contain the virus that caused losses at Chinese companies.

Chinese companies, whose orders have been reduced due to the ineffectiv­eness of the US government in fighting the pandemic, can also collect evidence and sue the US federal government or relevant state government­s for compensati­on, Zhu Ying, a professor of internatio­nal law at Southwest University of Political Science and Law, told the Global Times on Wednesday. Zhu said that lawsuits can be filed in the US or at appropriat­e Chinese courts.

As the coronaviru­s continues to ravage abroad, many Chinese factories are seeing widespread declines in export orders, delays, or cancellati­ons of existing orders. Some are even facing risks of going bankrupt due to declining orders. In the first quarter, China’s total export dropped by 11.4 percent year-on-year.

In fact, as the domestic epidemic has been effectivel­y contained and economic activities have gradually resumed, top Chinese officials have deemed the deteriorat­ing external environmen­t as one of the biggest risks for the Chinese economy.

For Chinese companies, the worry is not just the pandemic itself but also an increasing­ly hostile environmen­t for Chinese products, as some foreign officials and media outlets even sought to smear life-saving Chinese medical supplies.

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