What is the liability situation if you have an issue and cause damages to someone else's stuff in space? Are there treaties covering this? Is space pretty much considered international waters?
The Space Liability Convention establishes that all liability issues must be resolved between states. If a Chinese spacecraft damages an American spacecraft, the US government may be entitled to compensation if it can prove that the operator of the Chinese spacecraft was at fault. If the American spacecraft was privately owned, any compensation the owner may receive is a matter between the owner and the government.