According to a report from Ulitzer, a group of bi-partisan U.S. senators are demanding that Chinese government-owned companies, including Taishan Gypsum Co., Ltd “comply with a federal court order to appear in court, answer charges and satisfy a default Judgment against them.” Among the senators demanding China comply are Senator David Vitter (LA-R), Senator Mary Landrieu (LA-D), and Senator Bill Nelson (FL-R).
The order to appear in court was issued after “plaintiffs filed a new class action naming Taishan and the Chinese government as defendants.” In July, a federal court held Taishan in civil and criminal contempt for failing to appear in court.
Arnold Levin of Levin Fishbein Sedran & Berman, lead counsel for the class action representatives, said the support from the group of U.S. Senators shows just how seriously the U.S. government sees China’s effort to avoid jurisdiction of our courts.
Senator Nelson made a statement to the importance of this decision and China’s avoidance of court jurisdiction:
“Its implications are far broader than the issues present in this litigation. It poses a defining moment for the Chinese government and its companies, which raises grave questions as to the risk of doing business with the Chinese. Will the Chinese government and its companies honor their moral and legal obligations under this or any other commercial contract? Will the Chinese government and its companies which have profited from the sale of defective products to consumers here in the United States continue to flee court jurisdiction when sued or will they honor moral and legal obligations to appear in court, defend themselves, and satisfy an adverse judgment?”
Senator Landrieu and Senator Vitter also slammed Taishan for its refusal to take responsibility for its harmful products and for continuing to disregard U.S. law and our court system.
China’s avoidance in these cases may affect U.S. business relations with China.