The increased numbers of securities lawsuits and Securities Exchange Commission investigations involving Chinese companies is creating a dilemma as private litigants and the SEC pursue discovery of documents located in China. Many companies and individuals that have received or will receive these discovery requests and subpoenas will essentially be forced to choose between violating U.S. or Chinese law.
This predicament exists because of the two countries’ fundamentally differing laws concerning discovery. On the one hand, the SEC is arguably empowered under U.S. law to issue investigative subpoenas with respect to certain documents located in China, and civil plaintiffs are making efforts to directly serve similar discovery under a broad interpretation of the Federal Rules of Civil Procedure. On the other hand, there are strict prohibitions under Chinese law on such discovery occurring within its borders, the most well-known of which are restrictions on the disclosure of information deemed to be “state secrets.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
