Dorsey Represented Luokung Technology in Its Removal from U.S. CCMC list
U.S. law firm Dorsey & Whitney represented Chinese software technology company Luokung Technology in obtaining a court preliminary injunction to be removed from the “Communist Chinese military company” (“CCMC”) designation. Luokung became the second Chinese company to be removed from this negative list after Xiaomi.
Dorsey represented Luokung in this lawsuit against the U.S. President, Department of Defense and the Department of the Treasury. After the removal, NASDAQ withdrew its delisting notice to Luokung, and Luokung has regained its position on the FTSE GEIS (Micro Cap) index.
On June 3, 2021, President Biden signed an Executive Order to announce a new “Chinese Military-Industrial Complex Companies List”, which includes 59 Chinese companies and became effective on August 2, 2021. The victories of Luokung and Xiaomi are exemplary cases of Chinese companies’ successful challenge of U.S. government’s sanctions and can be used as relevant case law and reference where appropriate in the future.
“Chinese companies should find suitable legal counsel as soon as possible, rather than seeking “Guanxi” (i.e., using influence) if they are treated unfairly in the United States and if the situation is urgent.” Catherine Pan-Giordano, chief counsel of Luokung’s U.S. legal team and a partner of Dorsey & Whitney’s New York office tells ALB.
Pan points out that the U.S. Constitution also protects foreign companies that have sufficient “connections” with the country, such as participation in the U.S. capital markets and having U.S. shareholders, business partners, employees, and contracts and business relationships with U.S. companies.
Pan also advises Chinese clients seek lawyers who can efficiently marshal resources within a law firm, have deep understanding of relevant areas, and can “seamlessly communicate with Chinese clients, which requires not only language capabilities but also deep understanding of Chinese culture, tradition, social systems and practical circumstances”.
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