Working conditions and labor practices in Chinese factories have long been targets of rather public Western derision – deservedly so in many cases. But now those criticisms are ending up in US and UK courts as Chinese companies fight back. According to the The New York Times,
“Chinese companies have sued or sent threatening legal letters to researchers in the United States, Europe and Australia close to a dozen times in recent years in an attempt to quash negative information, with half of those coming in the past two years. The unusual tactic borrows from a playbook used by corporations and celebrities to discourage damaging news coverage in the media. The budding legal tactic by Chinese firms could silence critics who shed light on problematic business practices inside one of the most powerful countries in the world, researchers warn. The legal action is having a chilling effect on their work, they say, and in many cases straining the finances of their organizations.
Representative John Moolenaar, a Michigan Republican, said ‘The Chinese Communist Party uses the American legal system to silence those who might expose them in America’ …
Chinese corporations are increasingly hiring Western lawyers to combat [reports from researchers] over allegations of defamation.”
I’m not sure many companies previously considered this kind of legal risk – but with US-Chinese tensions rising, it would be prudent to expect more such lawsuits. For the moment, it appears that academics and NGOs are the targets, but it isn’t a stretch to think that US companies will be next based on statements made in company disclosures and perhaps even supplier audits.
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