State Immunity

Hong Kong

The Hong Kong Court of Appeal upheld a claim by the US firm of FG Hemisphere against China Railway that arose from debts owed by the government of the Democratic Republic of Congo. At issue was whether Congo enjoyed state immunity before the Hong Kong court, for which the Department of Justice of Hong Kong intervened and produced a letter from China's Foreign Ministry to the Hong Kong Government, stating, "The courts in China have no jurisdiction over, nor in practice have they ever entertained, any case in which a foreign state or government is sued as a defendant or any claim involving the property of any foreign state or government. ... At the same time, China has never accepted any foreign courts having jurisdiction over cases in which the state or government of China is sued as a defendant, or cases involving the property of the state or government of China. This principled position held by the government of China is unequivocal and consistent." The Hong Kong court, however, rejected the defendants' argument that Hong Kong courts had no jurisdiction, given that the territory's autonomy does not extend to foreign affairs, and held that "the doctrine of restrictive immunity currently continues to apply in Hong Kong".