Since 2010, the U.S. courts have frequently compelled Chinese banks to provide bank documents even though the discovery would violate Chinese bank secrecy law. The continuing conflicts would lead to a lose-lose situation in which neither the Chinese banks nor the foreign litigants would get any benefits.
This position not only demonstrates China’s willingness to safeguard the multilateral trading system, but also represents China’s legitimate choice to counter unilateral sanctions imposed by the United States in accordance with international law.
The D.C. Circuit upheld the contempt orders against three Chinese banks on 30 July 2019. For Chinese banks, they have been frequently caught in a catch-22 since Gucci v. Weixing Li: violating Chinese laws to produce documents or be held in contempt for refusing discovery. To some extent, perhaps Chinese banks are going through the worst of times after their entry into the U.S. financial markets.
China-US trade war may bankrupt many Chinese companies, and Chinese courts should get prepared as soon as possible.