Sovereigns, Torts and Bribes
It seems inevitable that sovereign liability issues will continue to grow; several posts on this topic are indexed under the heading "sovereign." Two new items caught my eye on sovereign-owned or supported entities.
First, note this NLJ article on decisions holding that FCPA prosecutions are proper for bribes paid to business entities which are arguably owned or controlled by government entities. Second, consider the growing scale of global Chinese government investment in businesses around the world, and how many entities may soon be considered sovereign-owned or controlled. According to this recent NYT article about a new study on Chinese investment:
"Flush with capital from its enormous trade surpluses and armed with the world’s largest foreign exchange reserves, China has begun spreading its newfound riches to every corner of the world — whether copper mines in Africa, iron ore facilities in Australia or even a gas shale project in the heart of Texas.
The study, commissioned by the Asia Society in New York and the Woodrow Wilson Center for International Scholars in Washington, forecasts that over the next decade China could invest as much as $2 trillion in overseas companies, plants or property, money that could help reinvigorate growth in the United States and Europe."