U.S. Subpoena for Information Stored in China: How Should Companies Respond?

March 28, 2022 | BY

Hugo Yeung

Multinational corporations with both a U.S. and China presence may increasingly find themselves caught between two legal systems as both countries implement regulations that seek to achieve diametrically opposite objectives. What are the issues and how should companies prepare and respond?

Credit: Tashatuvango/Adobe Stock

Summary

U.S. courts will not set aside a subpoena just because a foreign blocking statute restricts the disclosure of information
Companies should implement robust document retention policies and document hold protocols
Whether a company should comply with a subpoena may depend on where the company is based and the type of data requested
Companies can negotiate an extent of compliance with the issuer of the subpoena
Lawyers strongly advise companies obtain approval from PRC authorities before responding to a U.S. subpoena
Raising legal and procedural challenges against subpoenas is standard practice

Throughout the past decade, U.S. courts and administrative agencies have issued a growing number of subpoenas — formal legal orders that compel an entity to produce documentary