Why China is changing its laws to allow court action against foreign states
- Analysts say changes had been in the pipeline for a long time, but Beijing was spurred to act because of concerns about its increasing investments abroad
- The move aligns the country with international norms, but some concerns have been raised about protections for lower-ranked officials
China’s recent decision to allow legal action against foreign states indicates its increased willingness to use legal means to defend its national interest, analysts have said.
From January 1 next year, sovereign states and their property will no longer be fully immune from prosecution in China.
China will move to allow cases concerning commercial activities and territorial torts – defined as cases involving death or injury, or damage to property – from foreign state representatives, including diplomats, to come to court.
But there are often exceptions to non-sovereign state actions, most commonly defined as commercial activities or territorial torts.
By ratifying the Foreign State Immunity Law, China will abandon its traditional “absolute immunity” theory – in which states cannot be sued or have assets seized, even in commercial activities – and move to provide “restrictive immunity”, where that immunity only applies to the exercise of sovereign power.