It has long been recognized that sovereign states could resist the enforcement of arbitration awards against their property in foreign jurisdictions by asserting immunity from suit. In many instances, this 'obstacle' to enforcement was tempered by the fact that a state could only claim immunity in respect of its governmental, as opposed to commercial, activities. In Hong Kong, this is no longer the case following the decision in Democratic Republic of the Congo and others v. FG Hemisphere Associates L.L.C., rendering it much more difficult to enforce awards against the assets of foreign states in Hong Kong and leading to concerns that the decision will impact negatively on Hong Kong's standing as a pre-eminent international arbitration seat. This article will examine the decision and those concerns.
Journal of International Arbitration