Chapter Five - Chinese Companies in US Federal Courts

Summary

Litigation is a complex matter, calling for more sophisticated inquiries than what can be measured by a binary variable, namely, whether or not a Chinese company had experienced US lawsuits. This dichotomy glosses over crucial aspects of Chinese companies’ interactions with the US adjudicatory system. For instance, while prominent Chinese companies such as Huawei have litigated hundreds of lawsuits in the United States, most others were involved in no more than a few cases. However, the coding in Chapter 4 grouped them together in terms of US litigation experience. In fact, those that litigate infrequently may have more in common with Chinese companies that have managed to avoid US lawsuits altogether than prominent repeat players. To unveil important information lost from collecting and coding the data as a binary variable and to ameliorate possible biases in survey data concerning sensitive topics, this chapter explores a hand-collected objective dataset: federal lawsuits involving Chinese companies. It also presents three detailed case studies to demonstrate how Chinese companies with direct investments in the United States navigate the complex host-state legal system. These case studies (i.e., Lenovo, Huawei, and Fuyao Glass) will revisit the hypotheses and findings of prior chapters.