China Implements Foreign State Immunity Law, Signaling Legal Transformation

China has adopted a new Foreign State Immunity Law that will remove the immunity of foreign states and their property from Chinese courts starting from January 1, 2024. This move aligns China's stance on "foreign state immunity" with Western practices and aims to provide better legal protection for private businesses involved in international trade. The law defines commercial activity as any transaction or investment involving goods or services that does not constitute an exercise of sovereign authority. The amendment also allows embassies to collect evidence in foreign countries if necessary. Legal experts believe this change will make it easier to enforce arbitration awards and strengthen Hong Kong's reputation as a hub for dispute resolution.