‘A victory for Chinese steel and US law’: why a lawyer thinks Chinese companies can put faith in the American legal system
Steel case could have set a dangerous precedent for China, but should instead encourage its companies to choose the path of engagement, advocate says
Trade tensions between China and the United States may be on the rise but the result of a pivotal US steel investigation should encourage Chinese companies to use the American legal system to settle disputes.
That’s the assessment of one Beijing-based lawyer in a US law firm who helped successfully defend Chinese steel companies investigated by a US trade commission.
Ran Ruixue, a partner with the Washington-based law firm Covington & Burling, told the South China Morning Post, that the case was the first of its kind against Chinese steel products and the first time Chinese companies had won a trade secrets case before the commission.
“Chinese companies should maximise the use of US laws and rules to protect their interests,” Ran said.
“Rule of law is helping to make the vulnerable more protected. The investigation against the Chinese steel companies is an excellent example of this.”
Trade experts and lawyers also said Chinese firms could use the US legal system to defend themselves as trade frictions raised the prospect of more legal challenges from US rivals.
The case was filed in the US International Trade Commission (ITC) in April 2016 by United States Steel Corporation, commonly known as US Steel, against 40 Chinese steel producers and nine distributors.