Chinese new court rules can impact US businesses
Several days ago, a new order issued by Beijing legally opens the way to ignore business restrictions put by the US and to sue companies based on Chinese laws if they comply with US demands for restrictions. Factually, that means that any company that obeys the US restrictions while operating on the Chinese market can be expelled from that market or bound to pay large fines, which are going to toughen its business, should this company decide to stay.
Specialists tell this is a powerful fire back to America’s worst administration, Trump’s administration, which has prohibited sales of American technologies to Huawei (it happened because of fears that eventually, these technologies will end up in the hands of the Chinese military and intelligence. That fear is not ungrounded, indeed). China keeps establishing itself as the world’s biggest and most powerful economy and if Biden’s administration will miss that unambiguous signal and won’t do anything about it to change the situation, US companies may start rapidly losing the Chinese market followed by hundreds of court cases in 2021.
Beijing insists that such an order is made to protect the national sovereignty and security and to support the local business.