Growing Pains: A Road Map for Chinese Companies Learning to Live with Complex US Litigation
Mapping the general process of complex commercial litigation in the US, this article highlights some aspects that may come as an overwhelming shock to Chinese companies.
Date:
December 2007
Keywords (click to search): [litigation] [Congressional Research Service] [booming economy] [fastest growing economy] [complex US litigation] [large-scale US litigation] [complex commercial litigation] [commercial rules] [commercial law]
By A. Robert Pietrzak, Joel M. Mitnick, and Henry Ding of Sidley Austin LLP*
As stated by a report by the Congressional Research Service, "since the initiation of economic reforms in 1979, China has become one of the world's fastest growing economies. From 1979 to 2005, China's real gross domestic product (GDP) grew at an average rate of 9.7%. Real GDP grew by 11.1% over the in 2006, and during the first quarter of 2007, it rose by 11.1% . . . If projected growth levels continue, China could become the world's largest economy within a decade or so."1 Trade and foreign investment plays a significant role in China's booming economy and, to date, more than 200 Chinese companies are listed on US stock exchanges. China's economic growth has turned Chinese industries into attractive US litigation targets, both because these industries are finding themselves in a thicket of unfamiliar Western commercial rules and because they have increasingly deep pockets.
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