China has passed a new law to deal with lawsuits involving foreign countries, marking a significant shift from its long-held view that states were immune from being sued or having their assets seized by foreign courts.
The adoption of the Foreign State Immunity Law on Sept 1 means that, in limited circumstances, Chinese courts can have jurisdiction over proceedings involving foreign countries and their property.
Experts said the new law, which takes effect from 2024, provides a basis for commercial disputes involving Chinese plaintiffs and foreign states but is unlikely to allow for increased litigation over political actions that foreign governments take against China.
