US CHINA TRADE WAR —DEVELOPMENTS IN TRADE, CUSTOMS, PATENTS, AND SECURITIES

Jinshang Park from Forbidden City Yellow Roofs Gugong Palace BeiDear Friends,

There have been some new developments in the trade, customs, patents, and securities areas.

TRADE

NEW ANTIDUMPING CASE AGAINST CHINA ON CONCRETE STEEL RAIL TIE WIRE

On Tuesday, April 23, a new antidumping case was filed against Concrete Steel Rail Tie Wire from China.  The alleged antidumping rate is 54%.  Attached is a copy of the relevant pages of the petition.  Steel Rail Tie Wire Petition-4-25-13  The ITC Preliminary Conference will be held on May 14, 2013.  See attached ITC notice. ITC PRELIM NOTICE

HARDWOOD PLYWOOD ANTIDUMPING PRELIM —  FAIRNESS COMMERCE STYLE

On April 30th, Commerce issued its preliminary antidumping duty determinaton and the hardwood plywood companies got nailed again.  The two mandatory companies received, in effect, 0% duty rates.  But one hundred and one Chinese exporters, the rest of China, which is supposed to get the average rate or at least a rate that reflects commercial reality, received 22%. Keep in mind that the US importers pay these antidumping duties, not the Chinese exporters.  See the attached fact sheet.  factsheet_China-Hardwood-Decorative-Plywood-Prelim-30APR13

GOVT AND PETITIONER’S COUNSEL AWARDED LEGAL FEES AND COSTS FROM CHINESE COMPANY IN TIANJIN MAGNESIUM CASE

Attached is an opinion of the Court of International Trade awarding the government and Petitioner’s counsel $42,344 in legal fees and costs from TMI for TMI’s obstructive behavior in trade proceedings.  TIANJIN MAGNESIUM SANCTIONS CASE

As the CIT stated in the attached opinion:

“TMI’s repeated efforts — through counsel — to obstruct Commerce’s exercise of its statutory duties, to delay proceedings through frivolous argumentation and filings, and to mislead the court on material matters of fact and law constitute an intolerable level of vexatiousness and bad faith.  . . . Given TMI’s persistent misconduct before this Court and before Commerce, an award of fees and costs related to its problematic filings in this case is warranted and necessary to deter additional costly distractions in future trade proceedings.”

CUSTOMS

HONEY RICO ACTION

On April 19, 2013, three US honey producers filed a class action lawsuit in the Federal Court in Illinois against Honey Holding Ltd. under RICO, the Racketeer Influenced and Corrupt Organizations Act alleging that Honey Holding had defrauded the US government and domestic honey makers by “landering” cheap altered versions of Chinese honey to disguise its country of origin and evade the Honey antidumping order.

Plaintiffs are asking for triple damages plus attorney fees.  The RICO Act or RICO is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization. The RICO Act focuses specifically on racketeering, and it allows the leaders of a syndicate to be tried for the crimes which they ordered others to do or assisted them in doing.

Attached is a copy of the complaint HONEY HOLDING COMPLAINT, which alleges that:

“Plaintiffs, on behalf of themselves and Class Members, bring this action as a national class action under Title XI (“RICO”) of Public Law 91-452, 84 Stat. 922 (1970) (as codified at 18 U.S.C. §§ 1961–1968, as amended) and the common law against Defendants for their fraud, negligent misrepresentation, conspiracy, and clandestine and wrongful importation and dumping of Chinese honey (and possibly honey from other unlawful source countries) on the United States honey market without paying the corresponding antidumping duties, by reason of which, Defendants substantially depressed the price of honey legitimately produced, packed, marketed, and sold in the United States by Plaintiffs and Class Members, damaged the Government in its governmental functions, and damaged Plaintiffs and Class Members in their businesses and/or property.  . . .”

“At all relevant times, since as early as 2000, Defendants have participated in a worldwide conspiracy to deceive Government import authorities about the origin of honey produced in China, avoid paying the corresponding antidumping duties on the Chinese honey, defraud the United States honey market and substantially injure Plaintiffs and Class Members—legitimate domestic honey producers and packers—in their businesses and property. “

PATENTS

ZTE AND LENOVO

Attached are patent complaints filed by Wyncomm on April 13, 2013 against ZTE and Lenovo.  ZTE PATENT LENOVO

HUAWEI AND ZTE—POTTER VOICE    

Attached is a patent complaint filed on April 25, 2013 against ZTE and Huawei by Potter Voice Technologies.  ZTE POTTER VOICE

CHINESE SEMICONDUCTOR COMPANIES

Attached is a patent complaint filed on April 18, 2013 by Semcon Tech LLC against Semiconductor Manufacturing International Corporation, Semiconductor International Shanghai, Semiconductor Manufacturing International , Beijing and Tianjin, and Shenzhen and Siltech Semiconductor Shanghai  SHORT SEMICONDUCTOR PATENT

SECURITIES

US SECURITIES CASE BETWEEN TWO CHINESE COMPANIES IN US FEDERAL COURT

Attached is a securities complaint filed on April 17, 2013 in US Federal Court in California by one Chinese company suing another Chinese company for securities fraud under US Securities law.  The case is Great Dynasty International Financial Holdings Ltd. v. Haiting Li, Zhiyan Li, and Pacific Bepure Industry, Inc.  INTER CHINA SECURITIES CASE

If you have any questions about these cases or about the US trade, customs, patent, antitrust or securities law in general, please feel free to contact me.

Best regards,

Bill Perry

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