CPI Asia Column edited by Vanessa Yanhua Zhang (Global Economics Group) present:
Animal Sci. Prods. v. Hebei Welcome Pharm. Co. (2d Cir. 2016) –By Wenzhuo Liu & Hui Liu1
On September 20, 2016, the United States Court of Appeals for the Second Circuit issued an opinion that may significantly impact Chinese companies doing business in the United States. The Second Circuit reversed and remanded a decision by the United States District Court for the Eastern District of New York denying a motion to dismiss and a motion for summary judgment brought by two Chinese defendants, Hebei Welcome Pharmaceutical and North China Pharmaceutical (collectively, “Hebei Welcome”). The motions were brought in response to a complaint filed by several U.S. vitamin C (“VC”) purchasers accusing Hebei Welcome and several Chinese VC manufacturers of violating Sherman and Clayton Acts by fixing VC prices. At the district court, the Chinese Ministry of Commerce (Hereinafter “the Ministry”) submitted an amicus brief, to explain relevant Chinese laws and policies in support of Hebei Welcome’s motions. On appeal, the Second Circuit held that the district court should have accorded deference to the Ministry’s interpretation of Chinese laws. The Second Circuit is one of the most influential federal appellate courts in the United States. This decision sets up an important precedent for Chinese manufacturers facing potential antitrust allegations in the United States.
Background:
In
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