While an increasing number of Chinese companies are doing business in the U.S., China has nevertheless built a legal firewall around its financial services firms by refusing to acknowledge the jurisdiction of U.S. courts and regulatory agencies.
This makes it exceedingly difficult to serve Chinese companies in the U.S. with discovery, subpoenas and other documents seeking a reply. These challenges were spelled out in a May 5 report of the U.S.-China Economic and Security Review Commission, a government agency created by Congress in 2000 to oversee the national security implications of the two nations’ bilateral trade and economic relationship.