In the News: Extraterritorial Law Application in China; New EU AI Rules Add to Costs; and FDI in China are More Cautious

July 18, 2024 | BY

Brian Chan &Krista Lee

The Supreme People's Court releases "typical cases" as a guide for the application of extraterritorial laws in Chinese courts; Chinese tech companies anticipate increased costs under the EU AI Act; and Foreign investors face increased domestic competition in China.

Credit: utah51/Adobe Stock

China Releases Five Foreign Cases That Guide International Cases in Chinese Courts

On July 5, China's Supreme People's Court (SPC) issued the first batch of "typical cases" clarifying the application of extraterritorial laws. The aim of the cases is to create a market-oriented international business environment in China and to enhance the international influence of China's judiciary, Beijing said. The five cases involve common types of international civil and commercial matters related to company investment, sales contracts, guarantee contracts, multimodal transport contracts and engineering supervision contracts. The jurisdictions involved are the U.S., the UK, Mexico, Tajikistan and Hong Kong.

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