PRC’s New Foreign State Law Marks Shift From Absolute to Restrictive State Immunity

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Foreign states are no longer immune from suit or execution in the PRC (including Hong Kong and Macau) in respect of their commercial activities.

The Standing Committee of the National People’s Congress (NPCSC) has passed the Foreign State Immunity Law (FSIL), which is intended to “develop the foreign state immunity legal regime of the PRC and provide legal basis for the PRC courts to hear civil cases involving foreign states and their assets,” according to the Ministry of Foreign Affairs of the PRC.

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