Foreign State Immunity Law Provides Immunity Exception for Judicial Review in Arbitration

The Supreme People’s Court participated in the formulation of the law, and put forward opinions and suggestions. Article 12 of the law stipulates: “For the following matters that need to be examined by the court, the foreign state shall not enjoy immunity from jurisdiction in the courts of the People’s Republic of China: (1) the validity of the arbitration agreement; (2) the recognition and enforcement of the arbitration award; (3) the annulment of the arbitration award; and (4) other matters that the People’s Republic shall examine the arbitration in accordance with the law.”

The provision on the exception of the jurisdiction immunity of judicial review of arbitration includes the arbitration of investment disputes between foreign states and organizations or individuals of other countries, including the People’s Republic, and is consistent with the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the Washington Convention) to which China is a party.