House China Committee Spotlights Chinese Legal Warfare Targeting AAM

Washington, D.C. - House Select Committee on the Chinese Communist Party (CCP) Ranking Member Raja Krishnamoorthi (D-Ill.) put Chinese auto behemoth BYD under public scrutiny during a hearing on Thursday. Krishnamoorthi excoriated the company for its exploitation of the U.S. legal system in a recent libel lawsuit against Alliance for American Manufacturing (AAM) President Scott Paul and two other employees that dragged on for almost two years as the organization helped lead advocacy to effectively ban Chinese state-owned companies from obtaining contracts to manufacture federally funded railcars or buses.

"This is the long arm of the CCP reaching into our jurisdiction," Krishnamoorthi said. "By having BYD sue Mr. Paul, they not only attempted to scare him from speaking out, but they are also trying to scare American companies from even doing business with them. The real cost of these lawsuits isn't just measured in dollars and cents, but also in the stories untold."

"BYD's attempt to intimidate us into submission failed, but it was a fight that came at great cost and one that other opponents of China's predatory mercantilist practices may not be able to sustain," Alliance for American Manufacturing President Scott Paul said. "Our experience should serve as both a case study of China's U.S. lawfare strategies and a cautionary tale for American policymakers. BYD weaponized U.S. law in an attempt to stifle AAM's voice in D.C. and cripple our ability to advocate for American manufacturers and workers."

BYD's failed litigation strategy began in November 2020, when Beverly Hills-based celebrity libel attorney Charles Harder and his firm filed suit in the U.S. District Court against AAM and three employees. The U.S. District Court rejected BYD's litigation attempt twice, and the U.S. Court of Appeals for the District of Columbia affirmed the District Court's decision on May 10, 2022. Finally, on Oct. 12, 2022, the Supreme Court rejected BYD's meritless lawsuit against AAM.

AAM led an advocacy campaign to enact the Transportation Infrastructure Vehicle Security Act (TIVSA), which was signed into law in 2019 with strong bipartisan support in the House and Senate. TIVSA bans federal tax dollars from being used to purchase rail cars or buses manufactured by an entity owned or controlled by, a subsidiary of, or otherwise related legally or financially to a corporation in certain qualifying countries, including China. BYD is one such restricted company under the law.

"We will never stop using our voice to fight for America's hardworking men and women. This activity is at the core of the protections afforded by the First Amendment of the U.S. Constitution," Paul said. "Congress must address abuse of the United States legal system by China and the entities it champions."

State and municipal Anti-Strategic Lawsuits Against Public Participation Act (Anti-SLAPP) laws, particularly the District of Columbia's, should be amended to provide relief to defendants confronting spurious defamation suits that land in Federal courts because of diversity jurisdiction.

Find AAM's statement to the House Select Committee on the CCP and the organization's original press release on the lawsuit's dismissal. The Wire China recently featured AAM's legal battle with BYD.

Paul is available for interview.

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