China to Allow Some Suits Against Foreign States: A Summary of the Foreign State Immunity Law

Photo by UN Climate Change under CC BY 2.0.

On September 1, 2023, China’s top legislature, the Standing Committee of the National People’s Congress (NPCSC), adopted the Foreign State Immunity Law (Law) [外国国家豁免法], which will take effect on January 1, 2024. The Law marks a historic change in China’s stance on foreign state immunity—a doctrine that shields states and their property from the jurisdiction of foreign courts—and brings China’s practice in line with international norms. In short, starting next year, foreign states will be subject to suit in China in certain circumstances as provided in the Law in which they currently enjoy immunity. Below, we for the most part offer only a straightforward summary of the Law, without attempting any critical or comparative analysis. For that, we recommend instead Prof. William Dodge’s twopart analysis of the Law’s December 2022 draft at Transnational Litigation Blog, which we drew on for our summary. Our English translation of the Law is available here and a chart comparing the Law’s two public versions here.

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NPCSC Session Watch: Administrative Reconsideration, Foreign-Related Litigation, Public Security Offenses & Education

UPDATE (Aug. 28, 2023): The NPCSC is expected to approve the draft revision to the Administrative Reconsideration Law, draft Foreign State Immunity Law, and draft amendment to the Civil Procedure Law on Friday, September 1. The draft revision to the Company Law will be subject to a fourth (and mostly likely final) review.

China’s top legislature, the 14th NPC Standing Committee (NPCSC), will convene for its fifth session from August 28 to September 1, the Council of Chairpersons decided on Monday, August 21. In addition to proposing an agenda that includes nine legislative bills, the Council also discussed a few other interesting matters at Monday’s meeting. We briefly discuss all those developments below. 

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NPCSC Session Watch: Lawmaking Reforms, Corporate Bankruptcy, Charity, Financial Stability, Foreign Sovereign Immunity, Cross-Border Litigation & More

UPDATE (Jan. 3, 2023): On December 30, 2022, the NPCSC adopted the revision to the Wild Animals Protection Law, effective May 1, 2023, and the Reservists Law, effective March 1, 2023.

UPDATE (Dec. 27, 2022): The official readout of the session’s first meeting reveals that the NPCSC is also reviewing a draft amendment to the Foreign Trade Law [对外贸易法] to codify a pilot administrative reform that recently expired on December 1. The readout also shows that the State Council has requested an interpretation of “relevant articles” of the Hong Kong National Security Law, without elaborating. We expect both to pass on Friday. Finally, it appears that the draft revision to the Enterprise Bankruptcy Law [企业破产法] has been removed from this session’s agenda.

Last Friday, the Council of Chairpersons decided to convene the 38th and second-to-last session of the 13th NPC Standing Committee (NPCSC) from December 27 to 30. The session’s tentative agenda includes fifteen bills. The Hong Kong government’s requested interpretation of the Hong Kong National Security Law, however, is not among them. But as we have explained, the NPCSC may hide the existence of a bill until after its adoption, so it could still consider an interpretation at the upcoming session. Below we briefly preview the bills slated for review.

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