You cannot sue some Chinese companies for faulty products as they are "state entities"!

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Forum topic by Planeman40 posted 05-14-2016 05:37 PM 1879 views 0 times favorited 5 replies Add to Favorites Watch
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1306 posts in 2959 days

05-14-2016 05:37 PM

Topic tags/keywords: legal lawsuit china

This is recommended reading!

Some Chinese state-owned entities, backed by the key government agency that oversees major state industrial companies, have adopted a controversial defense when they face U.S. lawsuits: You can’t touch us because we enjoy sovereign immunity.

Aviation Industry Corporation of China (AVIC), China’s biggest state-owned aerospace and defense company, has used the strategy twice, while state-owned China National Building Materials Group Co (CNBM), a state-owned building products company, successfully used it in a case involving allegations that Chinese-made drywall led to health problems for U.S. homeowners.

“The Sixth Circuit of the U.S. Court of Appeals ruled in December in AVIC’s favor in a separate case, by ordering a Michigan federal district court to re-examine its decision not to dismiss a lawsuit brought by Global Technology Inc (GTI) in a breach of contract case.

The more senior court said that the lower court should have more thoroughly weighed AVIC’s sovereignty immunity arguments. The case is now back with the lower court, where the parties have agreed to a court-supervised mediation. Clashes between the U.S. and Chinese legal systems have emerged in other arenas.”

””You can make the argument that a different economic and political system gives Chinese companies an advantage in some ways. But that’s U.S. law, and the U.S. government has made a clear decision that we will recognize the sovereign immunity of appropriately structured enterprises”

-- Always remember: It is a mathematical certainty that half the people in this country are below average in intelligence!

5 replies so far

View Bill White's profile

Bill White

5121 posts in 4158 days

#1 posted 05-14-2016 07:19 PM

I am not shocked. Only way to deal with them is to not send designs there. They will copy and sell for a fraction.
Good in——-Crap out.


View builtinbkyn's profile


2653 posts in 1138 days

#2 posted 05-14-2016 07:47 PM

The Trans-Pacific Partnership trade agreement (TPP) deal our president and some in Congress are pushing to pass, would have the same effect, basically protecting corporate interests from not only civil action, but in fact would allow corporations to sue governments for lost profits due to regulatory laws . This would have the effect of making corporations more powerful than sovereign states and the people.

You’ll not find much about the details of this as it’s considered super secret. No one in Congress is allowed to reveal anything about it. They can read the documents in a special room located below the capitol, but cannot take notes. Makes one wonder what the heck is in it. This can only be worse than NAFTA, for us.

-- Bill, Yo! Brooklyn & Steel City :)

View splatman's profile


586 posts in 1597 days

#3 posted 05-14-2016 08:50 PM

One more reason not to buy anything marked “Made in China”.

What’s next? Getting the short end of the law for refusing to buy anything made of Chinesium?

View MrRon's profile


5190 posts in 3441 days

#4 posted 05-15-2016 06:25 PM

I wouldn’t even try, but you can go after the U.S. importer or the store that sells it. After all, they are equally responsible for selling faulty products since they act as the go-between with China and the consumer.

View MrRon's profile


5190 posts in 3441 days

#5 posted 05-15-2016 06:33 PM

I am not shocked. Only way to deal with them is to not send designs there. They will copy and sell for a fraction.
Good in——-Crap out.

- Bill White

The problem is the lax U.S. laws regarding imports. China (or any other country) can copy a U.S. patent, make it and sell it and our gov allows it to come across our borders. If they were doing their job, they would reject anything that infringes our patents.

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