The Court of First Instance has confirmed that Mainland
entities controlled by the PRC Central People's Government
benefit from "crown" immunity from suit and execution,
whilst simultaneously ruling that state owned enterprises will not
ordinarily be entitled to such immunity when carrying out
commercial activities.
In TNB Fuel Services SDN BHD v. China National Coal Group
Corporation (8 June 2017) the judge rejected a Chinese
SOE's argument that its assets are immune from the execution of
an arbitral award.
A letter from the Hong Kong and Macau Affairs Office of the
State Council – the highest organ of state power - provided
no support to the SOE's claim that it is controlled by the CPG,
and an exhaustive review of PRC law and regulations revealed that
both legally and practically the SOE has extensive autonomy and
independence in carrying on its business and that its relationship
with the state is little different from that between a company and
its shareholders.
