U.S. Indicts Seven Chinese Executives, Who Face Up to 10 Years in Prison Upon Entering the U.S., All Linked to Container Companies!

On May 19, the U.S. Department of Justice announced criminal antitrust charges against four of the world’s largest container manufacturing companies and seven of their executives, accusing them of conspiring to restrict global production of standard non-refrigerated containers and manipulate prices.

Under the U.S. Sherman Antitrust Act, individuals found guilty may face up to 10 years in prison and a fine of $1 million; for corporations, the maximum penalty is $100 million, and if the proceeds from the crime or damages suffered by victims are higher, fines can be doubled.

The U.S. Department of Justice believes these container company executives caused container prices to nearly double between 2019 and 2021, exacerbating the global supply chain crisis. I find this utterly absurd—can market behaviors really be arbitrarily prosecuted simply because they’re deemed illegal by U.S. standards?

Why is the U.S. pursuing this lawsuit? According to Washington, these Chinese firms deliberately reduced capacity during the pandemic, creating tight supply conditions in the international shipping container market and forcing American consumers to bear higher costs—thus warranting accountability. But when the U.S. previously monopolized high-tech products, didn’t it do exactly the same thing to China?

If the U.S. continues escalating its practice of prosecuting Chinese companies under domestic laws, it may trigger an unintended backlash—an accelerated move toward a “de-Americanization” of global supply chains. Increasingly, Chinese enterprises will recognize that over-reliance on legal frameworks governed by U.S. rules carries systemic risks. As a result, they will seek alternative solutions in production layout, trade settlement, and supply chain organization to avoid the reach of U.S. extraterritorial jurisdiction.

How to counter this long-arm jurisdiction? First, avoid dealings with the U.S. altogether—steer clear of countries that have extradition treaties with the United States. Second, rely firmly on national strength; this issue now transcends individual and corporate levels.

Original article: toutiao.com/article/1865782815475724/

Disclaimer: The views expressed in this article are those of the author alone.