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Clauses & Controversies

Ep 2 ft. Tracy Alloway, Lee Buchheit, Alex Xiao

Aug 17, 2020
Tracy Alloway and Lee Buchheit discuss the possible resuscitation of claims against China for non-payment of Imperial Chinese bonds, the legal merit of unpaid debts as bargaining chips, the value and risks of these bonds as investments, the viability of a dollar-issued bond with a first priority claim, challenges of unauthorized debt instruments and counterclaims, and the moral dimension of debt and China's potential obligations.
50:38

Podcast summary created with Snipd AI

Quick takeaways

  • Imperial Chinese bonds have become a way for the US government to pressure China and assert moral superiority, despite the claims lacking legal merit.
  • The enforceability of claims on Imperial Chinese bonds faces legal challenges regarding the statute of limitations and the authorization of the bonds, but the concept of set-off and the potential for counterclaims add complexity to the debate.

Deep dives

The fascination with Imperial Chinese bonds

Imperial Chinese bonds, issued in the early 1900s, have gained attention due to their potential value and political significance. While many argue that these claims lack legal merit, they have become a tool for the US government to exert pressure on China and assert moral superiority. The bonds are seen as a way to penalize China and justify various punishment measures, such as blocking China from selling new debt internationally. The debate revolves around the plausibility of these claims, with arguments centered on the statute of limitations, political leverage, and the potential for a counterclaim by China. Despite the unlikely legal enforcement, the concrete value of the bonds and their symbolic significance make them an intriguing topic.

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