Chinese companies face more challenges in USA Market

The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping duty order on steel wire garment hangers from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

As a result of the Commission’s affirmative determination, the existing order on imports of this product from China will remain in place.

ITC complaint is a nuclear weapon for american companies to attack any Chinese vendor who wants to reap the market in USA. Most Chinese companies have no idea of dealing with investigation from ITC and also can’t afford the cost to hire American law firm to help them. I Personally call upon the Chinese companies join the battle together and share the litigation cost. Litigation is costly and time consuming in usa and most Chinese entrepreneurs will choose to ignore the ITC investigation. Normally, they will abandon the USA market. Most Chinese entrepreneurs will only focus on demestic market and has no vision for the oversea market. Huawei is the most innovative and global technology company in China but still have troubles in doing business in America. Huawei recenly announced abondoning USA telecommunication market after years’ hard working.

American market is not friendly to Chinese companies but many more Chinese companies are interested in USA market in order to achieve success globally.

Potential Risks Chinese companies need to know:

America is one of the most innovative and competitive market in the world and it’s very hard for Chinese Companies to win the customers’loyalty.

USA law and regulations is quite different from China and legal risk is the potential barrier in USA market.
Recent developments in U.S. law make clear that a U.S. company may face
serious liability under U.S. laws, including criminal laws, even though it
carefully trains and oversees its employees. These new legal developmen
create particularly difficult risks in emerging markets where corruption
and other forms of illegality are rampant.

Chinese companies don’t believe in law and tend to ignore legal risk. This is a serious mistake for Chinese companies. Any Chinese company should hire law firm to do legal search on the potential risk in order to run business in USA.

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