Taking Chinese Companies to Court Getting Easier for US Companies

What Display Daily thinks: There’s evidence enough that trade relations between the US and China are thawing in the background, and that does open up the possibility that instead of going all out on demonizing the Chinese for an election year, the Biden administration will pursue a policy that looks to bolster the economy in 2024. Trade relations with China play an important part in that.

So, what does that have to do with displays? It’s good news for Chinese manufacturers, as relations improve supply chains are restored, and access to new manufacturing equipment is eased. The industry has done enough to make sure that China has been competitive in the face of sanctions, open up the doors, and it’s going to get really interesting.

On the other hand, the news below also gives some comfort to US startups hoping to break into the Chinese display markets because, given the right legal advice, they can feel more protected in trade and IP. That’s not a small matter. Still not easy in practice, but a lot easier than it has been in the past.

While this is not exactly breaking news, it does signal a possible acceleration of relationship-building between China and US, the story promoted in the glow of a summit between the two countries’ presidents, and some touchy-feely sentiments of positivity about relations. Business is opening up and you should start to go shake some hands and make some new friends.

US and China Making Progress on Civil Judgment Reciprocity

Courts in the United States and China have made significant strides in recent years towards the mutual recognition and enforcement of each other’s civil court judgments, according to the law firm JunHe in Lexology.

For many years, it was difficult to enforce US court decisions in China, and vice versa. But that perception is now outdated. Since 2009, US courts have routinely recognized Chinese civil judgments that meet basic legal requirements under state laws and Supreme Court precedents.

In a landmark development in 2017, a Chinese court enforced an American civil judgment for the first time, citing reciprocity between the legal systems. Several other Chinese courts have followed suit based on China’s revised Civil Procedure Law allowing enforcement of foreign judgments on a reciprocal basis. Reasons cited by both US and Chinese courts for non-enforcement relate mainly to procedural technicalities, such as whether a decision is sufficiently final.

Legal experts argue this overall trend will help smooth trade disputes and advance economic ties between the two superpowers. Last September, China’s Supreme Court said it would continue promoting recognition of foreign civil judgments.