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PostPosted: Mon Jan 09, 2017 5:45 pm 
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Joined: Mon Apr 15, 2013 10:50 pm
Posts: 393
Home Schooled: Yes
Location: Falling at a 60° angle, defying physics
As far as I can tell, this case allows US companies to sue a Chinese state-owned enterprise (SOE) in federal court. Currently, SOEs cannot be sued due to the sovereign immunity doctrine, which states that you cannot sue a foreign government in US court, and state-owned enterprises, under this law, appear to be considered the government. Well, actually it's more complicated than that; the case is explained fairly well here. The case removes the sovereign immunity of state-owned enterprises to hold Chinese companies accountable.



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JohnMarkPorter1 wrote:
I'm inclined to think like Andrew does.

PostPosted: Mon Jan 09, 2017 8:59 pm 

Joined: Wed Sep 17, 2014 4:31 pm
Posts: 16
Home Schooled: Yes
Location: Ohio, R6
So the main reason it is hard to sue an SOE is that it can be hard to prove the SOE is engaging in commercial activity. SOEs engage in complex business structures, so while their subsidiaries may be obviously commercial, the actual SOE is less so. However most enforcement of the plan occurs by seizing assets of the SOEs subsidiaries. Which makes me wonder, why don't we just sue the subsidiaries? You get the same effect, without actually changing the law or destroying the sovereign immunity doctrine.

Alexander Kidd R6; SWORD

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