Wednesday, April 29, 2020

Damages for Corona from China

President D. Trump has announced that they are investigating and will claim damages from China on intentionally hiding and withholding information about Corona Virus and this amount will be very high.
China is a sovereign country and enjoys sovereign immunity and therefore is it possible to sue China or Chinese individuals in USA and if the damages are awarded then how it can be recovered.
Missouri state Attorney General has already filed a case against Chinese Govt, communist party and institutions for damages. Mississippi has followed Missouri in filing a case. American lawyer Larry Clayman & his advocacy group freedom watch along with Texas company Buzz Photo have filed a case for $20trillion, which is higher than the GDP of China. A Las Vegas firm has filed a class action suit on behalf of small businesses and one more suit has been filed by Berman Law group which seeks compensation and damages.
Missouri state Attorney General thinks that China can be sued.Two bills has been introduced by American senators and congressman that would strip China and other countries of their sovereign power if they intentionally made representations and for hiding information and facts about corona virus. Harry Jackson society a conservative think tank published a report suggesting that the G-7 nations could sue China for 6.3 trillion dollars. Germany, Italy and other countries are thinking in this direction.
Missouri AG claims that the there are two exceptions in the Foreign Sovereign Immunity Act of 1976 which permit filing of the case and claim damages. The second argument in favor of the case is the "Effect Doctrine". It is a doctrine developed mainly by American Courts in Anti-Trust cases asserting jurisdiction over acts of foreign national committed abroad but have effects in American Market lace.
The second difficulty will arise if the damages are awarded then how America can claim these damages. The embassy and its assets are protected by the Geneva Convention and hence can not touched but what it an do is to freeze and attach the Chinese investments by companies, individuals and even by Chinese Govt in USA. If other countries follow the example of USA then it can pose a serious threat to the Chinese economy. China knows that and probably its recent increased military and other activity in south China sea are an effort to divert attention.

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